§ 91537 Bond Issuance Authorization Rules

Key Takeaways

•The government can decide to borrow money by selling bonds, but only after they check some important rules first.
•The money from the bonds can only be used for certain things, and there are rules about how it’s paid back.
•If the government doesn’t follow the rules or can’t pay the money back, there are ways to fix it, like taking them to court or making them sell things to pay the debt.
•The rules also say how the money from the bonds is kept safe and what happens if something goes wrong.

Example

Imagine a city wants to build a new park but doesn’t have enough money. They decide to sell bonds to borrow money from people.

The city has to follow rules about how they spend the borrowed money and how they’ll pay it back. If the city doesn’t pay the money back on time, the people who bought the bonds can take the city to court or make them sell something to get their money back.

The issuance of bonds shall be authorized by resolution of the board adopted at any time following the determinations provided for in subdivision (j) of Section 91527 or Section 91530. The resolution may, as the board deems advisable and in accordance with the provisions of this article, provide for, or authorize the execution of a loan agreement, the repayment obligation of which is evidenced by the bonds, providing for, or authorize the execution of an indenture providing for: (a) The fixing and collection of revenues; (b) The creation and maintenance of special funds, including reserve and sinking funds; (c) Limitations on expenditures of bond proceeds; (d) The procedure, if any, by which any contract represented by bonds may be amended or abrogated; (e) The acts and omissions which shall constitute, and the rights and remedies available, in an event of default. In such an event of default, the obligations of the authority may be enforced, as appropriate, by mandamus, by the appointment of a receiver, by foreclosure or sale, by injunction, by specific performance, by equitable relief, or by any one or more of such remedies or any other remedy; and (f) Any additional matters authorized to be included in an indenture or which relate to the security, protection, or return of bondholders. (Amended by Stats. 1982, Ch. 1605, Sec. 14.)

Key Takeaways

•The government can decide to borrow money by selling bonds, but only after they check some important rules first.
•The money from the bonds can only be used for certain things, and there are rules about how it’s paid back.
•If the government doesn’t follow the rules or can’t pay the money back, there are ways to fix it, like taking them to court or making them sell things to pay the debt.
•The rules also say how the money from the bonds is kept safe and what happens if something goes wrong.

Example

Imagine a city wants to build a new park but doesn’t have enough money. They decide to sell bonds to borrow money from people.

Key Takeaways

Example

Key Terms

References

§ 91537 Bond Issuance Authorization Rules

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References