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HomeEducation CodeCh. 3Art. 3§ 101450 Community College Bond Funds

§ 101450 Community College Bond Funds

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

§ 101450 Community College Bond Funds

This law says that any extra money earned from college bonds—like interest and extra payment above face value—must stay in a special fund and can be used to help pay the bond interest, with the extra payment first covering bond‑selling costs.

Key Takeaways

  • •Premium and interest from bonds go into a special fund, not into the regular budget right away.
  • •Premium money can first pay the costs of issuing the bonds.
  • •After covering issuance costs, any remaining premium or interest can be transferred to the General Fund to offset bond‑interest expenses.

Example

A community college sells $100 million of bonds and gets $2 million extra (premium) plus interest each year.

The $2 million premium and the yearly interest stay in the Capital Outlay Bond Fund. First, the college uses the premium money to pay the fees for selling the bonds. Any leftover can be moved to the General Fund to lower the amount the college has to spend on bond interest.

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

Official Source
View on CA.gov

§ 101450 Community College Bond Funds

All moneys deposited in the 2024 California Community College Capital Outlay Bond Fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of the bond issuance before any transfer to the General Fund. (Added by Stats. 2024, Ch. 81, Sec. 28. (AB 247) Approved in Proposition 2 at the November 5, 2024, election. Effective November 6, 2024.)

Last verified: January 10, 2026

Key Terms

2024 California Community College Capital Outlay Bond FundGeneral Fundbond interestbond issuanceProposition 2AB 247

Related Statutes

  • § 101148 Bond Fund Interest Transfers
  • § 101429 School Bond Fund Transfers
  • § 101038 Community College Bond Interest
  • § 101446 Bond Payment Appropriation
  • § 100550 Higher Education Bond Interest Use

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 101450.
View Official Source