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HomePublic Utilities CodeDiv. 10Pt. 1Ch. 7Art. 3§ 26261 Bond Sale Procedures

§ 26261 Bond Sale Procedures

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

§ 26261 Bond Sale Procedures

Key Takeaways

  • •Bonds must be sold for at least their face value.
  • •The board must ask for bids before selling bonds.
  • •The board can pick the best bid or reject all bids if they're not good enough.
  • •If no good bids come in, the board can try again or sell the bonds directly.

Example

A school wants to sell bonds to build a new playground.

The school board asks for bids from people who want to buy the bonds. If someone offers a good price, the board sells to them. If no one offers a good price, the board can try again or sell the bonds directly to someone they choose.

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

Official Source
View on CA.gov

§ 26261 Bond Sale Procedures

The bonds may be issued and sold for not less than their par value, but otherwise as the board determines. Before selling any bonds, or any part thereof, the board shall give notice inviting sealed bids in such manner as the board may prescribe. If satisfactory bids are received, the bonds offered for sale shall be awarded to the highest responsible bidder. If no bids are received, or if the board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the board may reject all bids received, if any, and either again give notice inviting bids or sell the bonds at private sale. (Added by Stats. 1955, Ch. 1036.)

Last verified: January 23, 2026

Key Terms

par valuesealed bidshighest responsible bidderprivate sale

Related Statutes

  • § 101310 Bond Sale Procedures
  • § 100405 Bond Sale Procedures
  • § 102506 Bond Sale Procedures
  • § 103505 Bond Sale Procedures
  • § 30905 Bond Sale Procedures

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 26261.
View Official Source