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HomeGovernment CodeDiv. 6Ch. 1.5§ 5052 Registered Public Obligations

§ 5052 Registered Public Obligations

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 5052 Registered Public Obligations

Key Takeaways

  • •The law lets government groups issue special papers (like bonds) in a way that follows federal tax rules.
  • •These papers used to be given to whoever held them, but now they must be officially recorded with names.
  • •The law gives flexibility to make different systems for recording these papers, depending on what works best.
  • •The goal is to make it easy and correct to transfer these papers when needed.

Example

A city wants to borrow money by selling bonds to build a new park.

The city must record who owns each bond so the interest earned isn’t taxed by the federal government. They can choose how to track this, like using a computer system or paper records, as long as it’s clear and follows the rules.

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

Official Source
View on CA.gov

§ 5052 Registered Public Obligations

(a) The code provides that interest with respect to certain obligations may not be exempt from federal income taxation unless they are in registered form. It is, therefore, a matter of state concern that public entities be authorized to provide for the issuance of obligations in such form. It is a purpose of this chapter to empower all public entities to establish and maintain a system pursuant to which obligations may be issued in registered form within the meaning of the applicable provisions of the code. (b) Obligations have traditionally been issued in bearer rather than in registered form, and a change from bearer to registered form may affect the relationships, rights, and duties of issuers of, and the persons that deal with obligations, and by such effect, the costs. Such effects will impact the various issuers and varieties of obligations differently depending on their legal and financial characteristics, their markets, and their adaptability to recent and prospective technological and organizational developments. It is, therefore, a matter of state concern that public entities be provided flexibility in the development of such systems and control over system incidents, so as to accommodate such differing impacts. It is a purpose of this chapter to empower the establishment and maintenance, and amendment from time to time, of differing systems of registration of obligations, including systems incidents, so as to accommodate the differing impacts upon issuers and varieties of obligations. It is further a purpose of this chapter to authorize systems that will facilitate the prompt and accurate transfer of registered public obligations and developing practices with regard to the registration and transfer of registered public obligations. (Added by Stats. 1983, Ch. 59, Sec. 1. Effective June 2, 1983.)

Last verified: January 22, 2026

Key Terms

registrationregistered form,bearerschoolobligationeffective junetaxationissuance

Related Statutes

  • § 5053 Public Obligation Registration Systems
  • § 5055 Public Obligation Signature Validity
  • § 5057 Agent Appointment And Duties
  • § 5061 Public Obligation Registration Rules
  • § 5062 Contract Obligation Registration Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 5052.
View Official Source