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HomeGovernment CodeDiv. 2Pt. 1Ch. 6Art. 4§ 54402 Bond Issuance Terms

§ 54402 Bond Issuance Terms

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

§ 54402 Bond Issuance Terms

Key Takeaways

  • •The government can decide to sell bonds to borrow money for big projects.
  • •Bonds can have different types of interest rates, but there's a maximum limit they can't go over.
  • •Bonds can be in different forms, like paper certificates or digital entries.
  • •The government sets the rules for how and when the bonds will be paid back.

Example

A city wants to build a new park but doesn't have enough money right now.

The city can sell bonds to people or companies. These bonds are like IOUs—the city promises to pay the money back with interest over time. The city decides how much interest to pay, but it can't be more than the highest rate allowed by law. People who buy the bonds help the city build the park, and the city pays them back later with a little extra money as a thank you.

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

Official Source
View on CA.gov

§ 54402 Bond Issuance Terms

The legislative body may determine and provide in the resolution for: (a) The issuance of any bonds or a series in the form of serial bonds or sinking fund bonds with serial or term maturities. (b) The interest of the bonds either fixed or variable, the rate or rates, payable at the times and in the manner specified therein. Under no conditions may the annual fixed or variable interest rate exceed the maximum rate specified in Section 53531 of the Government Code. (c) The denomination of the bonds. (d) The form of the bonds, coupon, registered, or book entry. (e) The registration and conversion privileges of the bonds. (f) The manner in which the bonds are to be executed. (g) The medium and place of payment. (h) The terms of redemption, with or without a premium. (Amended by Stats. 1990, Ch. 1130, Sec. 4.)

Last verified: January 22, 2026

Key Terms

registrationresolutionpremiumrepaymentissuancedenominationredemption

Related Statutes

  • § 54422 Bond Payment Revenue Security
  • § 54420 Bond Revenue Security Pledge
  • § 53397.6 Bond Issuance Voter Approval
  • § 29911 Bond Call And Redemption
  • § 54431 Bond Payment Limitations

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 54402.
View Official Source