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HomePublic Utilities CodeDiv. 10Pt. 11Ch. 4Art. 7§ 99351 Bond Payment Priority Requirements

§ 99351 Bond Payment Priority Requirements

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

§ 99351 Bond Payment Priority Requirements

Key Takeaways

  • •The county must collect enough taxes to pay back the money it borrowed (bonds) first.
  • •After paying the bonds, the county must also pay any extra money it promised to the people who lent the money.
  • •The county must also pay any other important bills that are tied to the money it gets from taxes.

Example

Imagine the county borrowed money to build a new school.

The county must make sure it collects enough taxes to pay back the loan for the school first. Then, it has to pay any extra fees it agreed to when it took the loan. After that, it can use the remaining tax money for other important things, like fixing roads.

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

Official Source
View on CA.gov

§ 99351 Bond Payment Priority Requirements

After making allowances for contingencies and error in the estimates, the taxes, for the respective purposes hereinafter set forth, shall be at least sufficient to pay the following amounts in the order set forth: (a) The interest on and principal of the bonds as they become due and payable. (b) All payments required for compliance with the resolution authorizing the issuance of the bonds or any other contract with the bondholders, including the creation of sinking and reserve funds. (c) All payments to meet any other obligations of the county which are charges, liens, or encumbrances upon the revenues. (Added by Stats. 1971, Ch. 1400.)

Last verified: January 23, 2026

Key Terms

complianceagreementresolutionallowanceobligationliencontractencumbrance

Related Statutes

  • § 99326 County Bond Revenue Security
  • § 99339 Bond Authorization Contract Provisions
  • § 897 Contract Rights Preservation
  • § 98164 Pension Rights In Utility Acquisitions
  • § 99323 Revenue Bond Payment Limits

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 99351.
View Official Source