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HomeWater CodeDiv. 7Ch. 16Art. 3§ 14040 Bond Loan Authorization Process

§ 14040 Bond Loan Authorization Process

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

§ 14040 Bond Loan Authorization Process

Key Takeaways

  • •The board can borrow money from a special fund (Pooled Money Investment Account) if they need it.
  • •They can only borrow as much money as they are allowed to get from selling bonds.
  • •The board must fill out the right papers to get and pay back the loan.
  • •The borrowed money goes into a fund and is used for specific purposes allowed by the law.

Example

Imagine a school needs money to fix its playground but hasn't sold all the bonds yet to pay for it.

The school board can ask for a loan from a special money pool to fix the playground now. They can only borrow as much as they are allowed to get from selling bonds later. They have to promise to pay it back and use the money only for the playground.

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

Official Source
View on CA.gov

§ 14040 Bond Loan Authorization Process

The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purposes of carrying out the provisions of this chapter. The amount of the request shall not exceed the amount of the unsold bonds which the committee has by resolution authorized to be sold for the purpose of carrying out this chapter. The board shall execute such documents as are required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter. (Added by Stats. 1988, Ch. 45, Sec. 1. Approved in Proposition 81 at the November 8, 1988, election.)

Last verified: January 23, 2026

Key Terms

Pooled Money Investment Boardloanunsold bondscommitteefund

Related Statutes

  • § 12879.16 Bond Loan Authorization Process
  • § 14071.5 Bond Loan Authorization Process
  • § 14032 Safe Drinking Water Bonds
  • § 14033 Bond Issuance Authorization Committee
  • § 14036 Bond Fund Withdrawal Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Water Code. Section 14040.
View Official Source