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HomeGovernment CodeDiv. 6Ch. 1.5§ 5051 Public Obligation Definitions

§ 5051 Public Obligation Definitions

Government Code·California
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§ 5051 Public Obligation Definitions

Key Takeaways

  • •This section defines special words used in the law about money promises made by the government or public groups.
  • •An 'obligation' is like a promise to pay back money, with interest, like when the government borrows money for schools or roads.
  • •A 'public entity' is any group that can borrow money and not pay some taxes, like cities, schools, or state agencies.
  • •There are two types of money promises: one with a paper certificate (like a fancy IOU) and one without paper, just tracked in a book.

Example

Your city wants to build a new park but doesn’t have enough money.

The city can borrow money by making a promise (an 'obligation') to pay it back later. They might give people paper certificates or just write names in a book to keep track of who lent money. Because the city is a 'public entity,' they might not have to pay certain taxes on the interest they pay back.

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

Official Source
View on CA.gov

§ 5051 Public Obligation Definitions

As used in this chapter, the following terms have the following meanings, unless the context otherwise requires: (a) “Authorized officer” means any individual required or permitted, alone or with others, by any provision of law or by the issuing public entity, to execute on behalf of the public entity a certificated registered public obligation or a writing relating to an uncertificated registered public obligation. (b) “Certificated registered public obligation” means a registered public obligation which is represented by an instrument. (c) “Code” means the Internal Revenue Code of 1954, as amended. (d) “Facsimile seal” means the reproduction by engraving, imprinting, stamping, or other means of the seal of the issuer, official or official body. (e) “Facsimile signature” means the reproduction by engraving, imprinting, stamping, or other means of a manual signature. (f) “Financial intermediary” means a bank, broker, clearing corporation, or other person, or the nominee of any of them, which in the ordinary course of its business maintains registered public obligation accounts for its customers, when so acting. (g) “Issuer” means a public entity which issues an obligation. (h) “Obligation” means an agreement of a public entity to pay principal and any interest thereon, whether in the form of a contract to repay borrowed money, a lease, an installment purchase agreement, or otherwise, and includes a share, participation, or other interest in any such agreement. (i) “Official actions” means the actions by statute, order, ordinance, resolution, contract, or other authorized means by which the issuer provides for issuance of a registered public obligation. (j) “Official or official body” means the officer or board that is empowered under the laws of this state to provide for original issuance of an obligation of the issuer, by defining the obligation and its terms, conditions, and other incidents, the successor or successors of any such official or official body, and such other person or group or persons as shall be assigned duties of such official or official body with respect to a registered public obligation under applicable law from time to time. (k) “Public entity” means any entity, department, or agency which is empowered under the laws of this state, to issue obligations any interest with respect to which may, under provision of law, be provided an exemption from the income tax referred to in the code. The term “public entity” may thus include, without limitation, the state, an entity deriving powers from and acting pursuant to the State Constitution or a special legislative act, a political subdivision, a municipal corporation, a state university or college, a school or other special district, a joint agreement entity, a public authority, a public trust, a nonprofit corporation, and other organizations. (l) “Registered public obligation” means an obligation issued by a public entity pursuant to a system of registration. (m) “System of registration” and its variants means a plan that provides: (i) With respect to a certificated registered public obligation that (1) the certificated registered public obligation specify a person entitled to the registered public obligation and the rights it represents, and (2) transfer of the certificated registered public obligation and the rights it represents may be registered upon books maintained for that purpose by or on behalf of the issuer; and (ii) With respect to an uncertificated registered public obligation, that (1) books maintained by or on behalf of the issuer for the purpose of registration of the transfer of a registered public obligation specify a person entitled to the registered public obligation and the rights evidenced thereby, and (2) transfer of the uncertificated registered public obligation and the rights evidenced thereby be registered upon such books. (n) “Uncertificated registered public obligation” means a registered public obligation which is not represented by an instrument. (Added by Stats. 1983, Ch. 59, Sec. 1. Effective June 2, 1983.)

Last verified: January 22, 2026

Key Terms

obligationagreementauthorized officerfacsimile sealfacsimile signaturefinancial intermediaryissuerofficial actions

Related Statutes

  • § 5053 Public Obligation Registration Systems
  • § 53190.5 Investor Reimbursement Agreement Terms
  • § 53191.5 Financing District Revenue Pledge
  • § 53192 Reimbursement Agreement Obligations
  • § 5500 Public Security Definitions

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 5051.
View Official Source