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HomePublic Utilities CodeDiv. 6Ch. 6.5Art. 5§ 13112 Bond Payment Methods

§ 13112 Bond Payment Methods

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

§ 13112 Bond Payment Methods

Key Takeaways

  • •Money for paying back bonds can come from special savings or trust accounts set up for that purpose.
  • •Interest or principal on bonds can be paid using extra money earned from selling those bonds.
  • •Money from selling new bonds can be used to pay off old bonds.
  • •Some of the interest on bonds can be paid using the money from selling those bonds while the work is being done.
  • •Someone else, like a buyer or another company, can promise to pay back the bonds if they agreed to do so.

Example

A city sells bonds to build a new park. They set up a special savings account to collect extra money from selling those bonds.

The city can use the extra money in that savings account to pay back the bonds later. This way, they don’t have to worry about finding the money when it’s time to pay.

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

Official Source
View on CA.gov

§ 13112 Bond Payment Methods

The provisions of this article shall not preclude any of the following: (1) The payment of any such principal, interest or premiums through appropriate reserve funds or special trust accounts, established as hereinafter in this article provided. (2) The payment of interest on or principal of bonds of any such issue out of sums received as premiums or accrued interest on the sale of that issue. (3) The payment of any such principal or premiums out of the proceeds of the sale of refunding bonds issued for that purpose. (4) The payment out of the proceeds of any bonds of the whole or a part of the interest accruing on said bonds during the period of the performance of work to be paid for out of such proceeds. (5) The payment of any such principal, interest or premiums by the purchasers of any such bonds, or by any entity, public or private, other than the district, in any case where any such purchaser or entity may have guaranteed such payment. (Added by Stats. 1957, Ch. 2237.)

Last verified: January 23, 2026

Key Terms

principalinterestpremiumsreserve fundsspecial trust accountsrefunding bondspurchasersguaranteed

Related Statutes

  • § 13134 Electric System Sale Restrictions
  • § 31005 Bond Refunding Authority
  • § 13172 Bond Proceeds Use Rules
  • § 100609 Bond Proceeds Handling
  • § 101311 Bond Proceeds Allocation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 13112.
View Official Source