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HomeEducation CodeDiv. 5Pt. 40Ch. 14.3Art. 3§ 67340 Bond Fund Withdrawal Authority

§ 67340 Bond Fund Withdrawal Authority

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

§ 67340 Bond Fund Withdrawal Authority

Key Takeaways

  • •The state can take money from the General Fund if they haven't sold enough bonds yet.
  • •They can only take as much money as the unsold bonds are worth.
  • •They have to pay the money back with interest when they finally sell the bonds.
  • •The interest rate is the same as what the state earns on its pooled investments.

Example

Imagine the state needs $100 million to build new schools, but they only sold $70 million in bonds so far.

The state can take the missing $30 million from the General Fund to start building the schools. Later, when they sell the rest of the bonds, they have to pay back the $30 million plus interest.

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

Official Source
View on CA.gov

§ 67340 Bond Fund Withdrawal Authority

For the purposes of carrying out this chapter, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which have been authorized to be sold for the purpose of carrying out this chapter. Any amounts withdrawn shall be deposited in the fund. Any money made available under this section shall be returned to the General Fund, together with interest at the rate paid on moneys in the Pooled Money Investment Account, from money received from the sale of bonds for the purpose of carrying out this chapter. (Added by Stats. 1988, Ch. 44, Sec. 1. Approved in Proposition 78 at the November 8, 1988, election.)

Last verified: January 23, 2026

Key Terms

directorgeneral fundpooled money investmentpropositionelection

Related Statutes

  • § 67357 Bond Fund Withdrawal Authority
  • § 67335 State Education Bond Authorization
  • § 67336 Bond Issuance Procedures
  • § 67338 Bond Payment Revenue Collection
  • § 67359.1 Bond Interest Transfer Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Education Code. Section 67340.
View Official Source