§ 13412 Public Agency Loan Repayment

Water Code·California

AI SummaryVerified

Key Takeaways

•If a public agency (like a city or school) wants to borrow money from the state, they must sign a deal to pay it back.
•They have to pay back the money with extra (interest) within 25 years.
•The extra money (interest) they pay is half of what the state pays when it borrows money.

Example

A small town wants to borrow money from the state to fix its old roads.

The town must sign a paper saying it will pay back the money plus extra (interest) in 25 years. The extra money is half of what the state pays when it borrows money.

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

Official Source

View on CA.gov

§ 13412 Public Agency Loan Repayment

No loan shall be made to a public agency unless it executes an agreement with the state board under which it agrees to repay the amount of the loan, with interest, within 25 years at 50 percent of the average interest rate paid by the state on general obligation bonds sold in the calendar year immediately preceding the year in which the loan agreement is executed. (Amended by Stats. 1986, Ch. 978, Sec. 1.)

Last verified: January 23, 2026

Key Terms

public agency state board general obligation bonds

References

Official text at leginfo.legislature.ca.gov
California Legislature. Water Code. Section 13412.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References