§ 6371 Fund Payment Priority Rules

Harbors and Navigation Code·California

AI SummaryVerified

If a city fund doesn't have enough cash to pay a request, the treasurer writes the request down in a log and marks it "Registered"; then the fund pays those requests in the order they were logged.

Key Takeaways

•Any request that can't be paid right away must be logged by the treasurer with all the details.
•The logged request is returned to the asker with a "Registered" stamp and a date.
•All logged requests are paid in the same order they were logged, first‑come‑first‑served.
•The treasurer can still pay city bonds and bond interest as allowed by the state constitution.

Example

A local contractor asks the city for $5,000 to finish a sidewalk, but the road repair fund only has $2,000 left.

The treasurer writes the contractor's request in a book with the date, amount, and contractor name, stamps it "Registered" and gives it back. When more money comes in, the treasurer will pay the contractor after any earlier "Registered" requests have been paid.

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

Official Source

View on CA.gov

§ 6371 Fund Payment Priority Rules

If there is not sufficient money in any fund to pay the demands made against it, the demand shall be registered in a book kept by the treasurer, showing its number, when presented, date, amount, name of payee, and on what account allowed and out of what fund payable, and when so registered, the demand shall be returned to the person presenting it with the endorsement of the word “Registered” dated and signed by the treasurer. All registered demands are payable in the order of their registration. This section does not prevent the payment by the treasurer of bonds of the district or of any city or county, and interest coupons thereof, in accordance with the Constitution of this State and the provisions of this part authorizing the issuance and payment of such bonds. (Enacted by Stats. 1937, Ch. 368.)

Last verified: January 11, 2026

Key Terms

sufficient money Registered treasurer bonds interest coupons

References

Official text at leginfo.legislature.ca.gov
California Legislature. Harbors and Navigation Code. Section 6371.

§ 6371 Fund Payment Priority Rules

Harbors and Navigation Code·California

AI SummaryVerified

§ 6371 Fund Payment Priority Rules

If a city fund doesn't have enough cash to pay a request, the treasurer writes the request down in a log and marks it "Registered"; then the fund pays those requests in the order they were logged.

Key Takeaways

•Any request that can't be paid right away must be logged by the treasurer with all the details.
•The logged request is returned to the asker with a "Registered" stamp and a date.
•All logged requests are paid in the same order they were logged, first‑come‑first‑served.
•The treasurer can still pay city bonds and bond interest as allowed by the state constitution.

Example

A local contractor asks the city for $5,000 to finish a sidewalk, but the road repair fund only has $2,000 left.

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

Official Source

View on CA.gov

§ 6371 Fund Payment Priority Rules

Last verified: January 11, 2026

Key Terms

sufficient money Registered treasurer bonds interest coupons

References

Official text at leginfo.legislature.ca.gov
California Legislature. Harbors and Navigation Code. Section 6371.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References