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HomeGovernment CodeDiv. 7Ch. 5Art. 2§ 6557 Bond Revenue Collection Requirements

§ 6557 Bond Revenue Collection Requirements

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

§ 6557 Bond Revenue Collection Requirements

Key Takeaways

  • •This law lets a group (like a city or company) set prices for services or things they build with borrowed money (bonds).
  • •The prices must be high enough to pay back the borrowed money, plus interest, and cover costs to keep the thing running.
  • •The prices can also include extra money for savings or emergencies related to the project.
  • •But if there’s a contract between groups, the prices must follow any rules in that contract.

Example

A city builds a new toll bridge using borrowed money.

The city must charge enough toll money to pay back the loan, cover bridge repairs, and save extra for future fixes. But if the city made a deal with another group about toll prices, they have to follow that deal.

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

Official Source
View on CA.gov

§ 6557 Bond Revenue Collection Requirements

Said indenture may include covenants or other provisions relating to the bonds issued thereunder requiring the entity to fix, prescribe and collect rates, tolls, fees, rentals or other charges in connection with the services and facilities furnished from the project acquired or constructed from the proceeds of bonds, and it may require such rates, tolls, fees, rentals or other charges to be sufficient to pay principal of and interest on the bonds as they become due, together with all expenses of operation, maintenance and repair of the project and such additional sums as may be required for any sinking fund, reserve fund or other special fund provided for the further security of such bonds, or as a depreciation charge or other charge in connection with such project; provided, however, that all rates, tolls, fees, rentals or other charges in connection with the services and facilities furnished by the project shall be subject to such provisions, if any, relative thereto as may be contained in the contract or agreement between the public agencies creating such entity. (Added by Stats. 1955, Ch. 329.)

Last verified: January 22, 2026

Key Terms

agreementcontractcovenantconnectionoperationmaintenancesecuritydepreciation

Related Statutes

  • § 26425 Bond Revenue Collection Requirements
  • § 50725 Bond Revenue Collection Requirements
  • § 6550 Bond Repayment Revenue Sources
  • § 6555 Bond Issuance Terms Authority
  • § 6564 Project Revenue Protection Covenant

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 6557.
View Official Source