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HomeGovernment CodeCh. 1Art. 2§ 91541 Authority Bond Nonliability

§ 91541 Authority Bond Nonliability

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

§ 91541 Authority Bond Nonliability

Key Takeaways

  • •The state or local government won't pay for these bonds if the agency can't. It's not their debt.
  • •No new taxes will be created to pay for these bonds.
  • •The people who approve or sign these bonds won't be personally responsible if something goes wrong.
  • •The bonds are only paid back using the money made from the project they were issued for.

Example

A city builds a new toll bridge using these bonds.

The money to pay back the bonds comes only from the tolls people pay to use the bridge. If the bridge doesn't make enough money, the city won't use tax money to cover the difference. The people who decided to build the bridge won't have to pay from their own pockets either.

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

Official Source
View on CA.gov

§ 91541 Authority Bond Nonliability

(a) None of the bonds of an authority or any other obligations of an authority shall be deemed to constitute a debt or liability of the state or any public agency, or a pledge of the faith and credit of the state or any public agency, but shall be payable solely from the funds provided therefor in the proceedings. (b) The issuance of bonds shall not directly or indirectly or contingently obligate the state or any public agency to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment. (c) All bonds shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California or the (insert name of public agency) is pledged to the payment of the principal of, premium, if any, or interest on any bond, nor is the state or such (insert “city,” “county,” or “city and county” as appropriate) in any manner obligated to make any appropriation for payment.” (d) Neither the members of governing bodies or of boards nor any persons executing the bonds shall in any event be subject to any personal liability or accountability by reason of the issuance of those bonds. (e) The bonds shall be only a special obligation of an authority as provided by subdivision (a) of Section 91535, and an authority shall under no circumstances be obligated to pay bonds or project costs (other than administration expenses), except from revenues and other funds received under the project agreements for those purposes, nor to pay administration and costs of issuance expenses except from funds received under project agreements for those purposes or from funds that are made available as otherwise authorized by the proceeding or by law. All bonds shall contain on the face thereof a statement of their special obligation nature. (Amended by Stats. 2009, Ch. 648, Sec. 13. (AB 1009) Effective November 5, 2009.)

Last verified: January 22, 2026

Key Terms

obligationliabilityauthoritypremiumagreementissuanceappropriationstatement

Related Statutes

  • § 91535 Authority Bond Revenue Obligations
  • § 91542 Project Obligation Completion Transfer
  • § 91545 Existing Contracts Protection
  • § 91560 Small Business Bond Security
  • § 62110 Covenant Subordination Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 91541.
View Official Source