§ 13095 Bond Payment Reserve Funds

Public Utilities Code·California

AI SummaryVerified

Key Takeaways

•If money is set aside in a special account to pay back a bond when it's due, that bond is considered paid off.
•The special account must have enough money to cover the bond payment.
•Once the money is safely put away, the bond is no longer counted as owed.

Example

A city takes out a loan to build a park and sets aside money in a special account to pay it back.

If the city puts enough money in the account to cover the loan, the loan is considered paid, even if the due date hasn't arrived yet.

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

Official Source

View on CA.gov

§ 13095 Bond Payment Reserve Funds

Any bond for the payment and discharge of which, upon maturity or upon redemption prior to maturity, provision has been made through the setting apart in a reserve fund or special trust account created pursuant to this chapter to insure the payment thereof, of moneys sufficient for that purpose, or through the irrevocable segregation for that purpose, in some sinking fund or other fund or trust account, of moneys sufficient therefor, shall be deemed to be no longer outstanding within the meaning of any provision of this chapter. (Added by Stats. 1957, Ch. 2237.)

Last verified: January 23, 2026

Key Terms

bond reserve fund special trust account sinking fund no longer outstanding

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 13095.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References