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HomePublic Utilities CodeDiv. 6Ch. 7.5Art. 1§ 13373 General Obligation Debt Repayment

§ 13373 General Obligation Debt Repayment

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

§ 13373 General Obligation Debt Repayment

Key Takeaways

  • •The government can borrow money by issuing bonds (like IOUs) for big projects.
  • •To pay back these bonds, they can collect extra taxes from people in the area without any limit on how much.
  • •The extra tax money can only be used to pay back the borrowed money and its interest, nothing else.
  • •These extra taxes are collected the same way as other local taxes.

Example

A city needs money to build a new school, so they borrow $1,000,000 by selling bonds.

The city can add extra taxes to your property tax bill to pay back the $1,000,000 plus interest. This extra tax can’t be used for anything else, like fixing roads or paying teachers.

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

Official Source
View on CA.gov

§ 13373 General Obligation Debt Repayment

General obligation indebtedness issued pursuant to this chapter shall be payable from any sources of available funds, including revenues or taxes. The board is hereby authorized to levy and collect taxes upon all property in the district subject to taxation by the district without limitation of rate or amount for the payment of the evidences of such general obligation indebtedness and the interest thereon. Such taxes shall be in addition to all other taxes levied for district purposes and shall be levied at the same time and in the same manner as other district taxes are levied and when collected shall be deposited in a special fund and shall be used for no purpose other than the payment of the principal of and interest on such general obligation indebtedness. (Amended by Stats. 1979, Ch. 1117.)

Last verified: January 23, 2026

Key Terms

general obligation indebtednesslevy and collect taxesspecial fundprincipal and interest

Related Statutes

  • § 13347 District Debt Repayment Authority
  • § 13371 District Indebtedness Issuance
  • § 13372 Refunding Bonds Issuance
  • § 13374 Large District Utility Requirements
  • § 13375 District Revenue Definition

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 13373.
View Official Source