§ 13172 Bond Proceeds Use Rules

Public Utilities Code·California

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Key Takeaways

•Money from selling bonds must be used for the exact reason the bonds were made.
•The people in charge can decide to use some of the bond money to pay interest during building, but only for up to 3 years after the bonds are sold.

Example

A city sells bonds to build a new park.

All the money from selling those bonds must go to building the park. If the city wants, they can use some of that money to pay the interest on the bonds while the park is being built, but only for up to 3 years.

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

Official Source

View on CA.gov

§ 13172 Bond Proceeds Use Rules

All sums received as principal and premiums on the sale of any issue of bonds shall be applied to the purposes for which such bonds were issued. The board may provide in the resolution authorizing the issue of any bonds under this chapter that any portion of the proceeds of sale of the bonds may be applied to payment of interest during construction for a period of not to exceed three years from and after the date of such bonds. (Added by Stats. 1957, Ch. 2237.)

Last verified: January 23, 2026

Key Terms

principal premiums payment of interest during construction three years

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 13172.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References