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HomeGovernment CodeDiv. 4Pt. 2Ch. 1§ 16312 Special Fund Loan Authority

§ 16312 Special Fund Loan Authority

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

§ 16312 Special Fund Loan Authority

Key Takeaways

  • •The state can lend money from a big savings account (Pooled Money Investment Account) to special projects instead of taking money directly from the main bank account (General Fund).
  • •The loan must be paid back with interest, like borrowing money from a bank.
  • •Some loans are paid back with money from selling bonds (like IOUs the state sells to raise money).
  • •If the project can't pay back the loan on its own, the main bank account (General Fund) will cover the interest.

Example

Imagine the state wants to build a new park but doesn't have the cash right now.

Instead of taking money from the main bank account, they can borrow from the big savings account. Later, they sell bonds (like IOUs) to get money to pay back the loan with interest.

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

Official Source
View on CA.gov

§ 16312 Special Fund Loan Authority

(a) Notwithstanding and in addition to any other provision of law permitting withdrawal of moneys from the General Fund for deposit into a special fund for the purpose of carrying out a program or project with repayment to the General Fund to come from the proceeds of the later sale of state bonds or notes, the Pooled Money Investment Board may instead make a loan from the Pooled Money Investment Account directly to any such special fund, on such terms and conditions as the board may determine, upon request made to the board by an appropriate official. Any official authorized by law to seek, authorize, or approve a withdrawal of moneys from the General Fund for these purposes may in the alternative request a loan from the board as provided in this section and execute such documents as are required by the board to obtain and repay the loan. Interest on the loan shall be determined as provided in Section 16314. (b) The Pooled Money Investment Board may also make a loan from the Pooled Money Investment Account to any special fund for the purpose of carrying out a program or project that is authorized to be financed by issuing bonds, notes, or other evidence of indebtedness, where the special fund does not qualify under subdivision (a). Any loan shall be subject to those terms and conditions as the board shall determine and interest shall be determined as provided in Section 16314. Any state agency or other entity of state government that has authority to issue bonds may request a loan from the Pooled Money Investment Account and execute such documents as are required by the board to obtain and repay the loan. (c) When a loan is made pursuant to subdivision (a) or (b) to a special fund to carry out a state general obligation bond program, other than a program adopted pursuant to an initiative statute prior to August 22, 1988, or Chapter 27, 30, 48, or 49 of the Statutes of 1988, the special fund shall pay the loan interest out of the proceeds derived from bond sales. For non-self-liquidating programs adopted pursuant to an initiative statute prior to August 22, 1988, or Chapter 27, 30, 48, or 49 of the Statutes of 1988, the General Fund shall pay the loan interest. (d) Notwithstanding Section 13340, amounts required to pay interest on loans made to non-self-liquidating general obligation bond programs are hereby continuously appropriated from the General Fund. The Legislature hereby finds and declares that these appropriations for interest payments regarding general obligation bond programs are appropriations for debt service as defined in Section 8 of Article XIII B of the California Constitution and therefore are exempt from the appropriations limit set by that article. (Amended by Stats. 1988, Ch. 984, Sec. 1. Effective September 20, 1988.)

Last verified: January 22, 2026

Key Terms

Pooled Money Investment BoardPooled Money Investment Accountspecial fundGeneral Fundgeneral obligation bond programsnon-self-liquidating programs

Related Statutes

  • § 16311 Bond Collection Expense Reimbursement
  • § 16313 State Agency Loan Refinancing
  • § 11010 State Agency Cost Recovery
  • § 11011.11 State Property Inventory Review
  • § 12012.46 Tribal Gaming Compact Ratification

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 16312.
View Official Source