§ 57528 Merged District Funds Usage

Government Code·California

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Key Takeaways

•If a city merges with another area, any money they get from selling stuff (like land or buildings) must first be used to pay off old debts.
•This includes paying back loans, interest, and other bills the merged area still owes.
•The rule makes sure old debts don’t get ignored when places combine.

Example

A small town merges with a bigger city. The town still owes money on a loan for an old fire truck.

If the city sells the town’s old fire station, the money from that sale must first go toward paying off the fire truck loan before anything else.

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

Official Source

View on CA.gov

§ 57528 Merged District Funds Usage

Any moneys and funds of the merged district and any moneys or funds received by the city from the sale or other disposition of any property, real or personal, of the merged district shall be used, to the extent necessary, for the payment of principal, interest, and any other amounts then or thereafter due on account of any outstanding bonds, including revenue bonds, and other contracts and obligations of the merged district. (Added by Stats. 1985, Ch. 541, Sec. 3. Effective September 9, 1985. Operative January 1, 1986, by Sec. 5 of Ch. 541.)

Last verified: January 22, 2026

Key Terms

property obligation contract effective september operative january disposition

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 57528.

Key Takeaways

Example

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Related Statutes

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Key Takeaways

Example

Key Terms

Related Statutes

References