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HomePublic Utilities CodeDiv. 10Pt. 12Ch. 7Art. 1§ 100405 Bond Sale Procedures

§ 100405 Bond Sale Procedures

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

§ 100405 Bond Sale Procedures

This rule tells a board how to sell bonds: they must ask for sealed bids, sell to the highest responsible bidder, and can re‑advertise or sell privately if the bids aren’t good enough.

Key Takeaways

  • •Bonds must be sold for at least their face (par) value.
  • •The board must invite sealed bids before selling any bonds.
  • •The highest responsible bidder gets the bonds, but the board can reject all bids and try again or sell privately if the offers aren’t satisfactory.

Example

A town needs money to fix its water pipes and decides to sell bonds to raise the cash.

The town board announces a sealed‑bid sale and asks banks to submit offers. The bank that offers the most money and is trustworthy gets the bonds. If no bank makes a good offer, the board can try again or sell the bonds directly to a bank.

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

Official Source
View on CA.gov

§ 100405 Bond Sale Procedures

The bonds may be sold as the board determines by resolution but for not less than par. Before selling the bonds, or any part thereof, the board shall give notice inviting sealed bids in such manner as it may prescribe. If satisfactory bids are received, the bonds offered for sale shall be awarded to the highest responsible bidder. If no bids are received or if the board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the board may reject all bids received, if any, and either readvertise or sell the bonds at private sale. (Added by Stats. 1974, Ch. 1204.)

Last verified: January 11, 2026

Key Terms

bondsparsealed bidshighest responsible bidderprivate sale

Related Statutes

  • § 103505 Bond Sale Procedures
  • § 30905 Bond Sale Procedures
  • § 102506 Bond Sale Procedures
  • § 105205 Bond Sale Procedures
  • § 26261 Bond Sale Procedures

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 100405.
View Official Source