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HomePublic Utilities CodeDiv. 9Pt. 2Ch. 6§ 22905 Bond Tax Payment Requirements

§ 22905 Bond Tax Payment Requirements

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

§ 22905 Bond Tax Payment Requirements

Key Takeaways

  • •The bond tax must cover the interest on the bonds for the year and part of the principal due that year.
  • •For the first half of the bond term, the tax must cover the interest for that period.
  • •For the second half of the bond term, the tax must cover the annual interest and a portion of the principal, calculated by dividing the total outstanding bonds by the remaining years.

Example

A city issues bonds to build a new school. The bonds have a term of 20 years.

For the first 10 years, the bond tax must cover the interest on the bonds. For the next 10 years, the tax must cover the annual interest and a portion of the principal, calculated by dividing the total outstanding bonds by the remaining years.

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

Official Source
View on CA.gov

§ 22905 Bond Tax Payment Requirements

The bond tax shall be sufficient to pay the interest on the bonds for the year and the portion of the principal becoming due during the year. The bond tax shall also be sufficient to raise annually for the first half of the term of the bonds a sum sufficient to pay the interest for that period, and, during the balance of the term, sufficient to pay the annual interest and to pay annually a proportion of the principal equal to the amount produced by dividing the total amount of outstanding bonds by the number of years the bonds then have to run. (Added by Stats. 1953, Ch. 151.)

Last verified: January 23, 2026

Key Terms

bond taxinterestprincipalterm of the bondsoutstanding bonds

Related Statutes

  • § 12894 Bond Tax Collection Requirements
  • § 25894 Bond Tax Collection Requirements
  • § 100609 Bond Proceeds Handling
  • § 105204 Bond Interest And Redemption
  • § 105207 Bond Proceeds Allocation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 22905.
View Official Source