LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeHarbors and Navigation CodeDiv. 8Pt. 7Ch. 6Art. 4§ 7225 Bond Proceeds Special Fund Use

§ 7225 Bond Proceeds Special Fund Use

Harbors and Navigation Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7225 Bond Proceeds Special Fund Use

This law says money from selling bonds must go into a special fund and can only be used for the specific project the bonds were meant for, and any leftover can later be used to pay back the bond debt.

Key Takeaways

  • •Bond sale proceeds must be placed in a special improvement fund.
  • •Funds can only be spent on the purpose for which the bonds were issued.
  • •After the purpose is completed, any remaining money can be used to pay the bond's principal and interest.

Example

A city issues bonds to fund building a new library.

The money from the bond sale must be put into a special fund and spent only on constructing the library. Once the library is finished, any remaining money in the fund can be used to pay the library's bond principal and interest.

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

Official Source
View on CA.gov

§ 7225 Bond Proceeds Special Fund Use

The proceeds from the sale of the bonds shall be paid into the treasury of the district and placed to the credit of a special improvement fund and expended only for the purpose for which the indebtedness was created; however, when the purpose has been accomplished, any moneys remaining in the special improvement fund may be transferred to the fund to be used for the payment of the principal of and interest on the bonds. (Added by Stats. 1959, Ch. 1598.)

Last verified: January 11, 2026

Key Terms

special improvement fundprincipalinterest

Related Statutes

  • § 7218 Bond Payment Terms Resolution
  • § 7219 Bond Interest Rate Limits
  • § 1265 Pilotage Tariff Petition Rules
  • § 1266 Petition Filing Deadlines
  • § 1267 Pilotage Tariff Revision Petition

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Harbors and Navigation Code. Section 7225.
View Official Source