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HomePublic Utilities CodeDiv. 6Ch. 6Art. 7§ 12871 District Investment Authorizations

§ 12871 District Investment Authorizations

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

§ 12871 District Investment Authorizations

Key Takeaways

  • •A district can invest extra money it has in certain safe things, like U.S. government bonds or its own bonds.
  • •They can also invest in things like state bonds or special bank certificates.
  • •The district can put money into big bank promises (if the bank has at least $1 billion in deposits).
  • •The district doesn’t have to follow the same investment limits as regular banks.

Example

A school district has extra money sitting in its bank account.

Instead of letting the money just sit there, the district can buy U.S. government bonds or its own school bonds to earn a little extra money safely.

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

Official Source
View on CA.gov

§ 12871 District Investment Authorizations

A district may invest any surplus money in its treasury, including money in any sinking fund, in any of the following: (a) Its own bonds, whether issued on behalf of the entire district or any special district. (b) Treasury notes, certificates of indebtedness, bills, bonds of the United States, or any other evidence of indebtedness secured by the full faith and credit of the United States. (c) Obligations issued pursuant to the Federal Home Loan Bank Act or the National Housing Act. (d) Treasury notes or bonds of this state, or of any public corporation, municipal corporation, public district, or political subdivision within this state which are legal as security for the deposit of public funds. (e) Obligations issued by federal intermediate credit banks, federal land banks, and banks for cooperatives. (f) Obligations issued or assumed by the International Bank for Reconstruction and Development, the Tennessee Valley Authority, the Inter-American Development Bank, or Export-Import Bank of Washington participation certificates. (g) Banker’s acceptances of banks having total deposits of one billion dollars ($1,000,000,000) or more. (h) Any securities in which savings banks in this state may legally invest their funds pursuant to Sections 1350 to 1366, inclusive, of the Financial Code; provided, that the provisions of said sections limiting the amount which a savings bank may invest in securities to a specified percent of its paid-up capital and surplus, or savings deposits, shall not apply to investments authorized by the terms of this section. (Amended by Stats. 1967, Ch. 926.)

Last verified: January 23, 2026

Key Terms

surplus moneysinking fundbanker’s acceptancesFinancial Code

Related Statutes

  • § 25871 District Investment Authorizations
  • § 101230 District Investment Authority
  • § 29100 District Investment Authority
  • § 12872 Public Bond Investment Rules
  • § 12873 District Investment Reinvestment Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 12871.
View Official Source