§ 54431 Bond Payment Limitations

Government Code·California

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Key Takeaways

•Money from bonds is not the local government's personal debt.
•The government doesn't have to use its own property or money to pay back the bonds.
•Only the money made by the project or other allowed funds can be used to pay back the bonds.

Example

A city builds a new park using bonds.

The city can only use the money made from the park (like entry fees) to pay back the bonds. It can't use money from other things, like schools or roads.

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

Official Source

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§ 54431 Bond Payment Limitations

The principal of and interest on the bonds and any premiums upon the redemption of any thereof are not a debt of the local agency, nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues except the revenues of the enterprise and other funds that may be legally applied, pledged, or otherwise made available to their payment. (Amended by Stats. 1953, Ch. 526.)

Last verified: January 22, 2026

Key Terms

encumbrance property premium lien repayment redemption

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 54431.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References