§ 103553 District Bond Agreement Compliance

This law says any contracts, leases, or equipment trust certificates must not go against the rules in the trust agreements that back the district's bond payments.

Key Takeaways

•All agreements, leases, and equipment trust certificates must match the trust agreements for district bonds.
•If an agreement conflicts with those trust rules, it cannot be used.
•The rule protects the district’s ability to pay its bonds, notes, or certificates.

Example

A city school district signs a lease for new computers that says the district can skip payments if it runs out of money.

Because the lease would let the district stop paying, it would clash with the trust agreement that guarantees bond payments, so the lease would be invalid under this law.

The covenants, conditions, and provisions of the agreements, leases, and equipment trust certificates shall not conflict with any of the provisions of any trust agreement securing the payment of bonds, notes, or certificates of the district. (Added by Stats. 1974, Ch. 502.)

This law says any contracts, leases, or equipment trust certificates must not go against the rules in the trust agreements that back the district's bond payments.

Key Takeaways

•All agreements, leases, and equipment trust certificates must match the trust agreements for district bonds.
•If an agreement conflicts with those trust rules, it cannot be used.
•The rule protects the district’s ability to pay its bonds, notes, or certificates.

Example

A city school district signs a lease for new computers that says the district can skip payments if it runs out of money.

Because the lease would let the district stop paying, it would clash with the trust agreement that guarantees bond payments, so the lease would be invalid under this law.

Key Takeaways

Example

Key Terms

References

§ 103553 District Bond Agreement Compliance

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References