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HomePublic Utilities CodeDiv. 10Pt. 4Ch. 8Art. 2§ 40336 District Revenue Bond Authority

§ 40336 District Revenue Bond Authority

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

§ 40336 District Revenue Bond Authority

Key Takeaways

  • •The district can borrow money by selling special bonds, which they promise to pay back using money they earn from their work (like bus fares or taxes).
  • •They don’t need to ask voters before borrowing this money if they’re using their own earnings to pay it back.
  • •The district can also use other money they have (if it’s not already promised for something else) to pay back these bonds.
  • •They can take short-term loans if they need money fast and pay it back later with their earnings.

Example

Imagine a city bus system wants to buy new buses but doesn’t have all the money right now.

The bus system can sell special promises (bonds) to people, saying, 'We’ll pay you back with the money we get from bus tickets and taxes.' They don’t have to ask the city to vote on it, and they can even use extra money they have (like parking fees) to make sure they pay everyone back.

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

Official Source
View on CA.gov

§ 40336 District Revenue Bond Authority

The district is hereby authorized to issue revenue bonds, payable, in whole or in part, from revenues made available under this article. Such revenues are hereby declared to be revenues of the enterprise for all purposes of the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300), Part 1, Division 2, Title 5 of the Government Code), and the restrictions therein provided against the securing of bonds by the taxing power or the proceeds of taxation shall not apply. The district shall be deemed a “local agency” and the planning, acquiring, constructing, operating, or maintaining of the district’s transit facilities, or any part thereof, shall be deemed an “enterprise” within the meaning of the Revenue Bond Law of 1941. The provisions of such law not inconsistent with any of the provisions of this article are hereby made applicable to the district, except that no election shall be required for the issuance of bonds under such law which are secured, in whole or in part, by the revenues of the tax imposed pursuant to this article. The resolution or indenture authorizing the issuance of any revenue bonds secured, in whole or in part, by the revenues of the tax imposed pursuant to this article shall provide that use of such revenues by the district to redeem such bonds shall be continued in effect until such bonds are fully paid or provision has been made for their payment in full. The district may borrow money in anticipation of the revenues made available under this article and may, from time to time, issue negotiable notes for that purpose. In addition to pledging revenues for the payment of any revenue bonds, the district may pledge for the payment of such bonds all other income or receipts of the district which are not required by law to be used for other purposes. (Added by Stats. 1974, Ch. 508.)

Last verified: January 23, 2026

Key Terms

resolutionrevenue bond lawissuancetaxationelectionanticipationaddition

Related Statutes

  • § 101291 Multiple Purpose Bond Propositions
  • § 13487 Public Agency Inclusion Consent
  • § 17365 District Petition Authorization
  • § 17370.1 Annexation Resolution Filing
  • § 17370.2 Annexation Approval Process

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 40336.
View Official Source