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HomeGovernment CodeDiv. 2Pt. 1Ch. 4Art. 6.5§ 53811 Certificate Holder Remedies

§ 53811 Certificate Holder Remedies

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

§ 53811 Certificate Holder Remedies

Key Takeaways

  • •If the board misses paying money they owe on certificates for 60 days, the people who own the certificates can take action.
  • •If 25% of the certificate owners agree, they can pick a trustee to help fix the problem.
  • •The trustee can make the board do what they promised, like collecting enough money or following the rules.
  • •The trustee can also take the board to court if they keep breaking the rules.

Example

Imagine a school board borrowed money by selling certificates to build a new school. They promised to pay back the money with interest, but they stopped paying.

If the board doesn’t pay for 60 days, the people who bought the certificates can team up (if 25% of them agree) and pick someone to make the board pay or follow the rules. This person can even take the board to court if needed.

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

Official Source
View on CA.gov

§ 53811 Certificate Holder Remedies

The rights and remedies conferred by this article upon or granted to certificate holders are in addition to and not in limitation of any rights and remedies lawfully granted to such certificate holders by the resolutions providing for the issuance of certificates. If the board defaults in the payment of principal or interest on any of the certificates after such principal or interest becomes due, whether at maturity or upon call for redemption, and if such default continues for a period of 60 days, or if the board fails or refuses to comply with the provisions of this article or defaults in any agreement made with the certificate holders, the holders of 25 percent in aggregate principal amount of the certificates then outstanding by instruments filed in the office of the recorder of the county in which the local agency is situated, and acknowledged in the same manner as a deed to be recorded except as this right is limited under the provisions of any deed of trust, indenture, or other agreement, may appoint a trustee to represent the certificate holders for the purposes provided in this article. The trustee or any trustee under any deed of trust, indenture or other agreements may, and upon written request of the holders of 25 percent in principal amount of the certificates then outstanding, or such other percentage as is specified in the deed of trust, indenture or other agreement, shall in his name: (a) By proper proceedings and actions enforce all rights of the certificate holder, including the right to require the board to collect rates, rentals and other charges adequate to carry out any agreement as to the revenues or the pledge of revenues or receipts of the board, to lease public buildings and require the board to carry out any other agreements with or for the benefit of the certificate holders, and to perform its duties under this article. (b) Bring suit upon the certificates. (c) By an action require the board to account as if it were the trustee of an express trust for the certificate holders. (d) By an action enjoin any acts or things which may be unlawful or in violation of the certificate holders’ rights. (e) By notice in writing to the board declare certificates due and payable, and if all defaults are made good then with the consent of the holders of 25 percent of the principal amount of the certificates then outstanding or such other percentage as is specified in any deed of trust, indenture, or other agreement, annul the declaration that certificates are due and payable. (Added by Stats. 1959, Ch. 2070.)

Last verified: January 22, 2026

Key Terms

agreementdeedbenefitresolutionleaseadditionlimitationissuance

Related Statutes

  • § 15827 Certificate Holder Remedies
  • § 53808 Local Agency Revenue Certificates
  • § 54702.4 Bond Terms And Conditions
  • § 53813 Certificate Holder Enforcement Rights
  • § 53910 County Warrant Issuance Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 53811.
View Official Source