§ 101312 Bond Interest Prepayment Authority

Public Utilities Code·California

AI SummaryVerified

This law lets the government include money to pay interest on bonds for up to 5 years while they're building or buying something with the bond money.

Key Takeaways

•The government can plan ahead to pay interest on bonds for up to 5 years.
•This helps cover costs while big projects like schools or roads are being built.
•The extra money for interest is included in the total amount borrowed.

Example

A city wants to build a new school but doesn't have all the money right away.

The city can borrow money by selling bonds and include extra money in those bonds to pay the interest for up to 5 years while the school is being built.

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

Official Source

View on CA.gov

§ 101312 Bond Interest Prepayment Authority

In lieu of the immediate levy of a tax to pay the interest, or any part thereof, on any bonded indebtedness incurred in accordance with this chapter, the board may, in the estimate of the amount of money necessary to be raised by the bonds, include a sum sufficient to pay interest on all of the bonds, or part thereof, during the period of acquisition, construction, or completion, but for no period in excess of five years. (Added by Stats. 1971, Ch. 1161.)

Last verified: January 11, 2026

Key Terms

bonded indebtedness immediate levy of a tax period of acquisition, construction, or completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 101312.

§ 101312 Bond Interest Prepayment Authority

Public Utilities Code·California

AI SummaryVerified

§ 101312 Bond Interest Prepayment Authority

This law lets the government include money to pay interest on bonds for up to 5 years while they're building or buying something with the bond money.

Key Takeaways

•The government can plan ahead to pay interest on bonds for up to 5 years.
•This helps cover costs while big projects like schools or roads are being built.
•The extra money for interest is included in the total amount borrowed.

Example

A city wants to build a new school but doesn't have all the money right away.

The city can borrow money by selling bonds and include extra money in those bonds to pay the interest for up to 5 years while the school is being built.

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

Official Source

View on CA.gov

§ 101312 Bond Interest Prepayment Authority

Last verified: January 11, 2026

Key Terms

bonded indebtedness immediate levy of a tax period of acquisition, construction, or completion

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 101312.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References