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HomePublic Utilities CodeDiv. 10Pt. 1Ch. 7Art. 4§ 26285 Refunding Bond Proceeds Use

§ 26285 Refunding Bond Proceeds Use

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

§ 26285 Refunding Bond Proceeds Use

Key Takeaways

  • •Money from selling new bonds can only be used to pay off old bonds.
  • •The old bonds must be bought back at their original price or less, plus any interest owed.
  • •You can't use the money from these new bonds for anything else.

Example

Imagine you took out a loan to buy a car, and now you want to take out a new loan to pay off the old one.

The money from the new loan can only be used to pay off the old car loan, not to buy a new TV or go on vacation. You also can't pay more than the original loan amount plus any interest you owe.

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

Official Source
View on CA.gov

§ 26285 Refunding Bond Proceeds Use

The proceeds of the sale of refunding bonds shall be applied only to the purchase, or retirement at not more than par and accrued interest, or the call price, of the bonded indebtedness for which the refunding bonds were issued. (Added by Stats. 1955, Ch. 1036.)

Last verified: January 23, 2026

Key Terms

refunding bondsbonded indebtednesspar and accrued interestcall price

Related Statutes

  • § 13286 Refunding Bond Proceeds Use
  • § 101319 Refunding Bond Proceeds Use
  • § 13281 Bond Refunding Authority
  • § 13287 Bond Refunding Exchange Rules
  • § 26281 Bond Refunding Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 26285.
View Official Source