§ 57455 Dissolved District Funds Use

Government Code·California

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Key Takeaways

•If a district is closed, its money must first pay off any debts or promises it made.
•This includes money from selling the district's property, like buildings or equipment.
•The money can't be used for anything else until all debts are paid.

Example

A small school district closes down because there aren't enough students.

The money from selling the school's buildings and buses must first pay off any loans or bills the school district still owes. Only after that can any leftover money be used for something else.

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

Official Source

View on CA.gov

§ 57455 Dissolved District Funds Use

Any moneys and funds of the dissolved district and any moneys or funds received by the successor from the sale or other disposition of any property, real or personal, of the dissolved district shall be used to the extent necessary, for the payment of principal, interest and any other amounts then or thereafter due on account of any outstanding bonds, including revenue bonds, and other contracts or obligations of the dissolved district. (Added by Stats. 1985, Ch. 541, Sec. 3. Effective September 9, 1985. Operative January 1, 1986, by Sec. 5 of Ch. 541.)

Last verified: January 22, 2026

Key Terms

contract property obligation effective september operative january disposition

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 57455.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References