§ 98351 Refunding Bonds Exemption

Public Utilities Code·California

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Key Takeaways

•Refunding bonds are not considered new debt, so they don’t need voter approval.
•The board can decide to pay back these bonds early if they want.
•This rule was added in 1967.

Example

A city wants to replace old bonds with new ones to get a better interest rate.

The city doesn’t need to ask voters for permission because refunding bonds aren’t seen as new debt. They can also choose to pay them off early if it saves money.

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

Official Source

View on CA.gov

§ 98351 Refunding Bonds Exemption

The issuance of refunding bonds shall not be construed as the incurring or increase of an indebtedness within the meaning of this act, and the approval of the voters is not required for the issuance of refunding bonds. The board may provide for the call and redemption of any or all of the bonds on any interest payment date prior to their fixed maturity in the ordinance authorizing the issuance of the refunding bonds. (Added by Stats. 1967, Ch. 978.)

Last verified: January 23, 2026

Key Terms

ordinance issuance refunding bonds redemption maturity

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 98351.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References