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HomePublic Utilities CodeDiv. 10Pt. 16Ch. 6Art. 1§ 105205 Bond Sale Procedures

§ 105205 Bond Sale Procedures

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

§ 105205 Bond Sale Procedures

This rule tells a board how to sell bonds: they must ask for sealed bids, sell to the highest responsible bidder, and can re‑sell if no good bids come in.

Key Takeaways

  • •Bonds must be sold for at least their face (par) value.
  • •The board must invite sealed bids before selling.
  • •The highest responsible bidder gets the bonds, unless the board rejects all bids.
  • •If no acceptable bids are received, the board can re‑advertise or sell privately.

Example

A town needs money to fix its playground and decides to sell bonds. The board sends out a notice asking for sealed bids, gets several offers, and picks the highest bidder who looks trustworthy.

The town follows the rule by advertising the sale, reviewing the bids, and choosing the best one. If none of the offers were good enough, the town could try again or sell the bonds privately.

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

Official Source
View on CA.gov

§ 105205 Bond Sale Procedures

The bonds may be sold as the board determines by resolution but for not less than par. Before selling the bonds or any part thereof, the board shall give notice inviting sealed bids in a manner as it may prescribe. If satisfactory bids are received, the bonds offered for sale shall be awarded to the highest responsible bidder. If no bids are received or if the board determines that the bids received are not satisfactory as to price or responsibility of the bidders, the board may reject all bids received, if any, and either readvertise or sell the bonds at private sale. (Added by Stats. 2002, Ch. 341, Sec. 4. Effective January 1, 2003.)

Last verified: January 11, 2026

Key Terms

bondsparsealed bidshighest responsible bidderprivate sale

Related Statutes

  • § 100405 Bond Sale Procedures
  • § 103505 Bond Sale Procedures
  • § 30905 Bond Sale Procedures
  • § 102506 Bond Sale Procedures
  • § 105203 Bond Issuance Authorization Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 105205.
View Official Source