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HomeGovernment CodeDiv. 2Pt. 1Ch. 6Art. 6§ 54515 Bond Revenue Payment Requirements

§ 54515 Bond Revenue Payment Requirements

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

§ 54515 Bond Revenue Payment Requirements

Key Takeaways

  • •Money from the project must first pay back the bonds (like loans) and their interest.
  • •Extra money must be set aside for things promised to the people who lent the money, like savings for future payments.
  • •After paying back the bonds, any other bills tied to the project’s money must be paid next.
  • •If the local government decides, money for running and fixing the project can be paid before the bond payments.

Example

A city builds a new water treatment plant using money borrowed by selling bonds.

The money earned from the plant must first pay back the bonds and their interest. Then, any extra money promised to the bondholders (like a savings fund) must be set aside. After that, other bills for the plant, like repairs or supplies, get paid. If the city decided earlier, the money for running the plant could come before paying the bonds.

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

Official Source
View on CA.gov

§ 54515 Bond Revenue Payment Requirements

After making allowances for contingencies and error in the estimates, the charges, together with any other funds which under this chapter can legally be, and which are, pledged or otherwise made available for the respective purposes hereinafter set forth, shall be at least sufficient to pay the following amounts in the order set forth: (a) The interest on and principal of the bonds as they become due and payable. (b) All payments required for compliance with the resolution authorizing the issuance of the bonds or any other contract with the bondholders, including the creation of sinking and reserve funds. (c) All payments to meet any other obligations of the local agency which are charges, liens, or encumbrances upon, or payable from, the revenues of the enterprise. (d) All current expenses of maintenance and operation of the enterprise, except that if the legislative body provides in the resolution calling the election that maintenance and operation costs of the enterprise shall be paid from the revenues prior to the principal, interest and sums for other security funds, then the current expenses of such maintenance and operation shall precede any other payments provided in this section. (Amended by Stats. 1955, Ch. 395.)

Last verified: January 22, 2026

Key Terms

resolutioncompliancemaintenancecontractlienallowanceobligationencumbrance

Related Statutes

  • § 50665.7 Local Agency Revenue Bonds
  • § 27288.1 Real Property Document Requirements
  • § 54420 Bond Revenue Security Pledge
  • § 56886 Reorganization Terms And Conditions
  • § 57459 Revenue Enterprise Debt Protection

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 54515.
View Official Source