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HomePublic Utilities CodeDiv. 6Ch. 6.5Art. 10§ 13161 Bond Issuance Financial Requirements

§ 13161 Bond Issuance Financial Requirements

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

§ 13161 Bond Issuance Financial Requirements

Key Takeaways

  • •Before issuing bonds, the board must check if the electric system has enough extra money (earned surplus) from the last fiscal year.
  • •The board must confirm that the total debt (including new bonds) does not exceed California's legal limits.
  • •The board must ensure all rules and steps for issuing bonds are followed correctly.

Example

A city wants to issue bonds to upgrade its electric system.

The city board must first check if the electric system has extra money from last year and ensure the new bonds won't make the total debt too high. If they don't check, they can't issue the bonds.

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

Official Source
View on CA.gov

§ 13161 Bond Issuance Financial Requirements

Prior to the issue of any bonds to be issued pursuant to this chapter, the board, after satisfying itself respecting the relevant facts, shall, by resolution, find and determine— (1) The amount of earned surplus derived from the operation of the electric system of the district to which the revenues out of which such bonds are to be payable pertain, as of the end of the last fiscal year which ended not less than four months prior to the making of such finding and determination, and that the ascertainment of such earned surplus has been in accordance with the then current accounting practice of the district; provided, however, that such finding and determination need not be made in the case of the authorization of refunding bonds, or in any case where the voters have assented to the issuance of bonds in excess of the limitation specified in this chapter. (2) The amount of bonds issued under this chapter which are outstanding at the time of the adoption of such resolution. (3) That the resolution or resolutions authorizing such issue of bonds in all respects conforms or conform with the provisions of this chapter. (4) That the indebtedness to be evidenced by such issue of bonds, together with all other indebtedness of the district, pertaining to the electric system for or on account of which such bonds are to be issued, is within every debt or other limit prescribed by the Constitution and statutes of the State of California. (5) That upon the issuance of such bonds any and all acts, conditions and things required to exist, to happen and to be performed, precedent to and in the issuance thereof, will exist, will have happened and will have been performed, in due time, form and manner, as required by the Constitution and statutes of the State of California. (Amended by Stats. 1962, 1st Ex. Sess., Ch. 6.)

Last verified: January 23, 2026

Key Terms

earned surpluselectric systemindebtednessConstitution and statutes of the State of California

Related Statutes

  • § 13163 Bond Issuance Certification Requirements
  • § 13093 District Bond Issuance Limits
  • § 13111 Electric System Revenue Bonds
  • § 13134 Electric System Sale Restrictions
  • § 13121 Bond Reserve Funds

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 13161.
View Official Source