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HomeHealth and Safety CodeDiv. 24Pt. 1Ch. 6Art. 5§ 33645 Bond Issuance Authorization Rules

§ 33645 Bond Issuance Authorization Rules

Health and Safety Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 33645 Bond Issuance Authorization Rules

Key Takeaways

  • •The agency can issue bonds (like borrowing money) to fund projects.
  • •The bonds can have different interest rates, but they can't exceed the maximum rate allowed by law (4.5% or less).
  • •The money from taxes (tax-increment funds) can be used to pay back these bonds, but only until all bonds are paid off.
  • •The total amount borrowed can't exceed the limit set in the redevelopment plan.

Example

A city wants to build a new park but doesn't have enough money right now.

The city can issue bonds to borrow money for the park. They promise to pay back the money with interest over time using tax money. If they borrow $1,000,000 at 4% interest, they'll pay back more than $1,000,000 in total. Once all the money is paid back, they stop using tax money for this.

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

Official Source
View on CA.gov

§ 33645 Bond Issuance Authorization Rules

The agency may authorize bonds by resolution. The resolution, trust indenture, or mortgage may provide for: (a)  The issuance of the bonds in one or more series. (b)  The date the bonds shall bear. (c)  The maturity dates of the bonds. (d)  The rate or maximum rate of interest on the indebtedness, which shall not exceed the maximum rate permitted by Section 53531 of the Government Code, and need not be recited if the rate does not exceed 4 1/2 percent. The interest may be fixed or variable and may be simple or compound. The interest shall be payable at the time or times determined by the agency. (e)  The denomination of the bonds. (f)  Their form, either coupon or registered. (g)  The conversion or registration privileges carried by the bonds. (h)  The rank or priority of the bonds. (i)  The manner of their execution. (j)  The medium of payment. (k)  The place of payment. ( l)  The terms of redemption with or without premium to which the bonds are subject. (m)  The maximum amount of bonded indebtedness in compliance with, and not to exceed, the limit specified in the redevelopment plan as required in Section 33334.1. The resolution, trust indenture, or mortgage shall provide that tax-increment funds allocated to an agency pursuant to Section 33670 shall not be payable to a trustee on account of any issued bonds when sufficient funds have been placed with the trustee to redeem all outstanding bonds of the issue. (Amended by Stats. 1987, Ch. 212, Sec. 2. Effective July 23, 1987. See provisions for inoperation in subd. (a) of Section 34189.)

Last verified: January 23, 2026

Key Terms

resolutioncomplianceregistrationmortgagepremiumcalifornia agencymaturityredevelopment

Related Statutes

  • § 33664 Agency Bond Purchase Rules
  • § 34354 Bond Issuance Terms Authority
  • § 33630 Community Bond Issuance Authority
  • § 33641 Redevelopment Project Bond Financing
  • § 33642 Bond Security Options

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Health and Safety Code. Section 33645.
View Official Source