§ 54420 Bond Revenue Security Pledge

Key Takeaways

•These bonds are like a special loan for a local agency (like a city or county).
•The money to pay back the loan comes only from the money the project makes (like fees or sales).
•If the project doesn’t make enough money, the agency doesn’t have to use other money (like taxes) to pay it back.
•The loan is tied only to the project’s money, not the agency’s other money.

Example

A city builds a new parking garage and takes out a loan to pay for it.

The loan is paid back only with the money people pay to park there. If the garage doesn’t make enough money, the city doesn’t have to use tax money to pay the loan. The loan is only connected to the garage’s money.

The bonds are special obligations of the local agency and are secured by a pledge of and shall be a charge upon, and shall be payable, as to the principal thereof, interest thereon, and any premiums upon the redemption of any thereof, solely from and secured by a lien upon the gross revenues of the enterprise and such funds as are described in the resolution authorizing the issuance of the bonds. (Amended by Stats. 1953, Ch. 526.)

Key Takeaways

•These bonds are like a special loan for a local agency (like a city or county).
•The money to pay back the loan comes only from the money the project makes (like fees or sales).
•If the project doesn’t make enough money, the agency doesn’t have to use other money (like taxes) to pay it back.
•The loan is tied only to the project’s money, not the agency’s other money.

Example

A city builds a new parking garage and takes out a loan to pay for it.

Key Takeaways

Example

Key Terms

References

§ 54420 Bond Revenue Security Pledge

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References