§ 5905 Government Financing Corporations

Government Code·California

AI SummaryVerified

Key Takeaways

•The government can create or buy a whole company to help with special money projects.
•This company can't be a bank or credit union.
•The project must be good for the government and people.

Example

A city wants to build more parks but doesn't have enough money.

The city can make a new company just to handle the money for building parks. This company can't be a bank, and the city must own all of it.

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

Official Source

View on CA.gov

§ 5905 Government Financing Corporations

One or more state or local governments may cause to be formed, and may acquire all, but not less than all, of the voting stock in, one or more corporations, not chartered by a state or federal agency as a depository institution, but organized for the purpose of undertaking financing programs approved by each legislative body and found by each legislative body to be of benefit to the state or local government. (Added by Stats. 1986, Ch. 1389, Sec. 1. Effective September 30, 1986.)

Last verified: January 22, 2026

Key Terms

corporation benefit stock effective september institution

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 5905.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References