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HomeGovernment CodeDiv. 7Ch. 5Art. 2§ 6564 Project Revenue Protection Covenant

§ 6564 Project Revenue Protection Covenant

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

§ 6564 Project Revenue Protection Covenant

Key Takeaways

  • •The rules for a project can say that no other deals can mess up the project's money or how it works.
  • •This is to make sure there's always enough money to pay back the people who lent money for the project.
  • •If someone tries to make a deal that hurts the project's money or how it runs, it's not allowed.

Example

A city builds a toll bridge with money borrowed from investors. The city promises to use the toll money to pay back the investors.

The city can't make a deal with another company to lower the toll prices too much, because that would mean less money to pay back the investors.

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

Official Source
View on CA.gov

§ 6564 Project Revenue Protection Covenant

The indenture may include a covenant or provision against the entering into of any agreement which impairs the operation of the project or any part of it necessary to secure adequate revenues to pay the principal and interest of the bonds, or which otherwise would impair the rights of the bondholders with respect to the revenues or the operation of the project. (Added by Stats. 1955, Ch. 329.)

Last verified: January 22, 2026

Key Terms

agreementcovenantoperationability

Related Statutes

  • § 6557 Bond Revenue Collection Requirements
  • § 6547.1 Revenue Bond Indebtedness Authority
  • § 6550 Bond Repayment Revenue Sources
  • § 6555 Bond Issuance Terms Authority
  • § 6558 Bond Revenue Fund Management

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 6564.
View Official Source