§ 11840 Construction Fund Investment Rules

Water Code·California

AI SummaryVerified

This law says that any extra money left in a construction fund, not needed for building or buying things, must be invested in safe bonds approved by the state.

Key Takeaways

•Extra money in construction funds can't just sit there—it must be invested.
•The investments must be in safe bonds approved by the state.
•This rule helps make sure public money is used wisely and grows over time.

Example

A school district finishes building a new school and has leftover money in the construction fund.

Instead of leaving the extra money sitting around, the district must invest it in safe bonds to grow the money until it's needed for another project.

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

Official Source

View on CA.gov

§ 11840 Construction Fund Investment Rules

All money in the construction fund not required to meet preconstruction, acquisition, or construction costs and expenses, or interest thereon, of the project, or unit thereof, for which bonds were issued and sold, and all funds constituting surplus revenues which are not immediately needed for the particular object or purpose to which they are required to be applied or are pledged shall be invested in bonds and obligations eligible for investment of surplus State money. (Added by Stats. 1943, Ch. 370.)

Last verified: January 11, 2026

Key Terms

construction fund preconstruction acquisition construction costs surplus revenues bonds and obligations eligible for investment of surplus State money

References

Official text at leginfo.legislature.ca.gov
California Legislature. Water Code. Section 11840.

§ 11840 Construction Fund Investment Rules

Water Code·California

AI SummaryVerified

§ 11840 Construction Fund Investment Rules

This law says that any extra money left in a construction fund, not needed for building or buying things, must be invested in safe bonds approved by the state.

Key Takeaways

•Extra money in construction funds can't just sit there—it must be invested.
•The investments must be in safe bonds approved by the state.
•This rule helps make sure public money is used wisely and grows over time.

Example

A school district finishes building a new school and has leftover money in the construction fund.

Instead of leaving the extra money sitting around, the district must invest it in safe bonds to grow the money until it's needed for another project.

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

Official Source

View on CA.gov

§ 11840 Construction Fund Investment Rules

Last verified: January 11, 2026

Key Terms

construction fund preconstruction acquisition construction costs surplus revenues bonds and obligations eligible for investment of surplus State money

References

Official text at leginfo.legislature.ca.gov
California Legislature. Water Code. Section 11840.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References