§ 100607 Bond Sale Procedures

Public Utilities Code·California

AI SummaryVerified

This law lets the board decide how to sell bonds, including selling them for less than face value, and sets rules for using sealed‑bid auctions or other sale methods.

Key Takeaways

•The board can sell bonds at any price, even below their face value.
•If the board uses a competitive bid, it must invite sealed bids and give the bonds to the highest responsible bidder.
•If no satisfactory bids are received, the board can reject them and sell the bonds another way, like a private sale or negotiation.
•The board can also skip the competitive bid process and sell bonds publicly, privately, or by negotiation.

Example

A city wants to raise money to build a new playground and decides to sell bonds to get the cash.

The city board can choose to hold a sealed‑bid auction, invite companies to submit bids, and then sell the bonds to the highest bidder who meets the rules. If no good bids come in, the board can try again or sell the bonds directly to a buyer.

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

Official Source

View on CA.gov

§ 100607 Bond Sale Procedures

The bonds issued pursuant to this chapter may be sold as the board determines by resolution. The board may sell the bonds at a price below par. If the board determines by resolution that the bonds shall be sold by competitive bid, the board, before selling the bonds, or any part thereof, shall give notice inviting sealed bids in the manner that it prescribes. If satisfactory bids are received, the bonds offered 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 or by negotiation, or by other lawful means. If the board determines by resolution that the bonds shall not be sold by competitive bid, the board may sell the bonds at public or private sale, by negotiation, or by other lawful means. (Added by Stats. 2003, Ch. 727, Sec. 1. Effective January 1, 2004.)

Last verified: January 11, 2026

Key Terms

bonds board competitive bid private sale negotiation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 100607.

§ 100607 Bond Sale Procedures

Public Utilities Code·California

AI SummaryVerified

§ 100607 Bond Sale Procedures

This law lets the board decide how to sell bonds, including selling them for less than face value, and sets rules for using sealed‑bid auctions or other sale methods.

Key Takeaways

•The board can sell bonds at any price, even below their face value.
•If the board uses a competitive bid, it must invite sealed bids and give the bonds to the highest responsible bidder.
•If no satisfactory bids are received, the board can reject them and sell the bonds another way, like a private sale or negotiation.
•The board can also skip the competitive bid process and sell bonds publicly, privately, or by negotiation.

Example

A city wants to raise money to build a new playground and decides to sell bonds to get the cash.

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

Official Source

View on CA.gov

§ 100607 Bond Sale Procedures

Last verified: January 11, 2026

Key Terms

bonds board competitive bid private sale negotiation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 100607.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References