§ 26445 Bond Interest During Construction

Government Code·California

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Key Takeaways

•Money from selling bonds can be used to pay the interest on those bonds.
•This is only allowed while the project (like building a school or road) is being built.
•After the project is done, this can continue for up to 2 more years.

Example

A city sells bonds to build a new park.

While the park is being built, the city can use the money from selling those bonds to pay the interest on them. They can keep doing this for up to 2 years after the park is finished.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 26445 Bond Interest During Construction

Interest on bonds may be paid out of the proceeds of the sale of the bonds during the actual construction of any project for the acquisition, construction or completion of which the bonds have been issued, and for a period of not to exceed two (2) years thereafter as provided for in the indenture. (Added by Stats. 1947, Ch. 822.)

Last verified: January 22, 2026

Key Terms

acquisition agreement construction when california completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 26445.

Key Takeaways

Example

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Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References