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HomeGovernment CodeDiv. 2Pt. 1Ch. 3Art. 9§ 53558 Refunding Bond Escrow Requirements

§ 53558 Refunding Bond Escrow Requirements

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

§ 53558 Refunding Bond Escrow Requirements

Key Takeaways

  • •Money set aside for refunding bonds must be enough to cover the old bonds' costs and fees.
  • •A certified accountant must check and confirm the money is enough.
  • •The money can be used to pay off the old bonds early or on time, plus any extra fees.
  • •The money must also cover the costs of making the new bonds.

Example

A city wants to pay off old bonds early to save money.

The city must set aside enough money, checked by an accountant, to cover the old bonds' costs and the fees for making new bonds. This money is kept safe until it's time to pay.

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

Official Source
View on CA.gov

§ 53558 Refunding Bond Escrow Requirements

Such proceeds and investments in escrow or trust shall be in an amount at the time of issuance of such refunding bonds which is certified by a certified public accountant licensed to practice in this state to be sufficient to meet the requirements of subdivision (a) or paragraph (b) of this section. (a) Such proceeds and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount at least sufficient to pay (i) the principal of and interest and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity (in connection with which the legislative body has exercised or has obligated itself to exercise a redemption privilege on behalf of the local agency) and (ii) the designated costs of issuance of the refunding bonds, or (b) Such proceeds and investments, together with any interest or other gain to be derived from any such investment, shall be in an amount at least sufficient to pay (i) the principal of and interest and redemption premiums, if any, on the refunding bonds prior to the maturity of the bonds to be refunded or prior to a designated date or dates before the maturity of the bonds to be refunded (in connection with which the legislative body has exercised or has obligated itself to exercise a redemption privilege on behalf of the local agency), (ii) the principal of and any redemption premiums due on such refunded bonds at maturity or at said designated date or dates and (iii) the designated costs of issuance of the refunding bonds. (Repealed and added by Stats. 1972, Ch. 531.)

Last verified: January 22, 2026

Key Terms

redemptionmaturitypremiumlicenseissuanceinvestmentconnection

Related Statutes

  • § 59284 Refunding Bond Escrow Requirements
  • § 53553 Refunding Bond Issuance Rules
  • § 53595.25 Local Debt Refunding Authority
  • § 50665.14 Bond Payment Revenue Security
  • § 53508.3 Bond Mandatory Tender Restrictions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 53558.
View Official Source