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HomePublic Utilities CodeDiv. 11Ch. 6Art. 4§ 120681 Bond Anticipation Notes Authority

§ 120681 Bond Anticipation Notes Authority

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

§ 120681 Bond Anticipation Notes Authority

Key Takeaways

  • •The board can borrow money using special notes while waiting to sell bonds.
  • •These notes must be paid back within 5 years.
  • •The notes can be paid with any available money or from the sale of the bonds later.
  • •The total amount of these notes cannot be more than the total bonds allowed minus any already sold.

Example

A school board plans to build a new school but needs money now. They are waiting to sell bonds to get the full amount.

The board can borrow money using special notes to start the project. They have up to 5 years to pay it back, either with money they have or from selling the bonds later. They can't borrow more than the total amount of bonds they are allowed to sell.

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

Official Source
View on CA.gov

§ 120681 Bond Anticipation Notes Authority

The board may borrow money in anticipation of the sale of bonds which have been authorized to be issued, but which have not been sold and delivered, and may issue negotiable bond anticipation notes therefor and may renew the bond anticipation notes from time to time, but the maximum maturity of any bond anticipation notes, including the renewals thereof, shall not exceed five years from the date of delivery of the original bond anticipation notes. The bond anticipation notes may be paid from any money of the board available therefor and not otherwise pledged. If not previously otherwise paid, the bond anticipation notes shall be paid from the proceeds of the next sale of the bonds of the board in anticipation of which they were issued. The bond anticipation notes shall not be issued in any amount in excess of the aggregate amount of bonds which the board has been authorized to issue, less the amount of any bonds of the authorized issue previously sold, and also less the amount of other bond anticipation notes therefor issued and then outstanding. The bond anticipation notes shall be issued and sold in the same manner as the bonds. The bond anticipation notes and the resolution or resolutions authorizing them may contain any provisions, conditions, or limitations which a resolution of the board authorizing the issuance of bonds may contain. (Added by Stats. 1983, Ch. 599, Sec. 2.)

Last verified: January 23, 2026

Key Terms

bond anticipation notesmaximum maturityproceeds of the next sale of the bonds

Related Statutes

  • § 105251 Bond Anticipation Notes Limit
  • § 30951 Bond Anticipation Notes Authority
  • § 100380 Vta Social Security Coverage
  • § 100381 Vta Employee Insurance Coverage
  • § 101240 District Financial Auditing System

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 120681.
View Official Source