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HomePublic Utilities CodeDiv. 10Pt. 13Ch. 8Art. 3§ 101311 Bond Proceeds Allocation Rules

§ 101311 Bond Proceeds Allocation Rules

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

§ 101311 Bond Proceeds Allocation Rules

This law tells where the money from selling bonds has to go – first to a special fund for paying back the bonds, then any extra to the project the bonds were for, and finally any leftover after everything is paid goes to the regular city fund.

Key Takeaways

  • •Bond money must first be set aside to pay the loan and interest.
  • •Extra money can only be used for the project the voters approved.
  • •When the project is done, leftover cash goes back to the bond‑paying fund.
  • •After the bonds are fully paid, any remaining cash goes to the regular district fund.

Example

A town sells bonds to build a new library.

The money from the bond sale first goes into a special account that will be used to pay back the bond loans and interest. Any money left after that is put into the town’s treasury to pay for building the library. When the library is finished, any remaining cash goes back into the bond‑paying account, and when the bonds are finally paid off, whatever is left goes into the town’s general fund.

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

Official Source
View on CA.gov

§ 101311 Bond Proceeds Allocation Rules

All premiums and accrued interest received on the sale of bonds shall be placed in the fund to be used for the payment of principal of and interest on the bonds. The remainder of the proceeds of the bonds shall be placed in the district treasury, or in the county treasury, as the case may be, to the credit of the proper fund, and shall be used exclusively for the objects or purposes for which the bonds were voted; provided that, when such objects and purposes have been accomplished, any moneys remaining shall be transferred to the fund to be used for the payment of principal of and interest on the bonds, and that, when all principal of and interest on the bonds shall have been paid, any balance of money then remaining shall be transferred to the general fund of the district. (Added by Stats. 1971, Ch. 1161.)

Last verified: January 11, 2026

Key Terms

premiumsaccrued interestprincipalinterestbond proceedsgeneral fund

Related Statutes

  • § 26262 Bond Proceeds Allocation Rules
  • § 31005 Bond Refunding Authority
  • § 100609 Bond Proceeds Handling
  • § 13633 Special District Debt Payment
  • § 29183 Bond Payment Tax Levy

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 101311.
View Official Source