§ 13085 Bond Principal Payments

Key Takeaways

•This law talks about paying back money borrowed through bonds.
•Paying back the main amount borrowed (not just the interest) is called 'payments on principal'.
•These payments can happen when the bond is due or by putting money into a special savings account (sinking fund) over time.
•Sometimes, you might have to pay extra money (premiums) if you're forced to pay back the bond early.

Example

Imagine you borrow $100 from your friend and agree to pay it back in 5 years. You also agree to put $20 every year into a piggy bank to save up for the final payment.

The $100 you borrowed is like the 'principal' of a bond. The $20 you put into the piggy bank every year is like a 'payment on principal' into a sinking fund. If your friend says you have to pay back the $100 early and also an extra $10, that extra $10 is like a 'premium'.

“Payments on principal” means payments on account of the principal of bonds, whether upon maturity or by payments into a sinking fund on account of principal, and includes premiums required to be paid on the mandatory redemption of sinking fund bonds. (Added by Stats. 1957, Ch. 2237.)

Key Takeaways

•This law talks about paying back money borrowed through bonds.
•Paying back the main amount borrowed (not just the interest) is called 'payments on principal'.
•These payments can happen when the bond is due or by putting money into a special savings account (sinking fund) over time.
•Sometimes, you might have to pay extra money (premiums) if you're forced to pay back the bond early.

Example

Imagine you borrow $100 from your friend and agree to pay it back in 5 years. You also agree to put $20 every year into a piggy bank to save up for the final payment.

Key Takeaways

Example

Key Terms

References

§ 13085 Bond Principal Payments

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References