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HomePublic Utilities CodeDiv. 6Ch. 6.5Art. 6§ 13122 Reserve Fund Use Restrictions

§ 13122 Reserve Fund Use Restrictions

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

§ 13122 Reserve Fund Use Restrictions

Key Takeaways

  • •Money in a special fund can only be used for its specific purpose, like paying for something important.
  • •You can move money between similar funds if it helps with the same big goal, like paying off bonds.
  • •If there's extra money left after paying everything needed, it can go back to the main money pot it came from.

Example

A city sets aside money to fix parks and play areas.

The money can only be used for parks, not for something else like roads. If there's leftover money after all the parks are fixed, it can go back to the city's main money pot.

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

Official Source
View on CA.gov

§ 13122 Reserve Fund Use Restrictions

Money set aside and placed in any such reserve fund or special trust account shall remain therein until from time to time expended for the purposes thereof, and shall not be used for any other purpose whatsoever, except for temporary investment thereof as provided in this chapter; provided, however, (1) That money may be paid or transferred from any such fund or account in furtherance of the purpose of its establishment, to any other such fund or account established for a like purpose in connection with the same issue of bonds, to such extent as may be required or permitted under the terms of the resolution authorizing that issue; and (2) That all money remaining in any such fund or account in excess of the amount required to make provision for the payment in full of the principal of, and interest on, the bonds with respect to which it was established, including premiums, if any, due upon the redemption of any thereof, may be returned and transferred to the revenue fund out of which such reserve fund was established. (Added by Stats. 1957, Ch. 2237.)

Last verified: January 23, 2026

Key Terms

reserve fundspecial trust accounttemporary investmentresolution authorizing that issuerevenue fund

Related Statutes

  • § 13095 Bond Payment Reserve Funds
  • § 13121 Bond Reserve Funds
  • § 13123 Reserve Fund Withdrawal Rules
  • § 13124 Trust Account Withdrawal Rules
  • § 13131 Bond Payment Reserve Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 13122.
View Official Source