SECTIONS 16485-16490 - California Statutes

GOVERNMENT CODE

SECTION 16485-16490

16485. It is the purpose of this article to authorize the
establishment of procedures for the transfer of bonds between funds
in the State Treasury in the following cases:
(a) When bonds held as investments by a fund in the State Treasury
are to be sold by such fund to, and purchased for, another State
Treasury fund; or
(b) When, under any provision of law, a specific amount of cash is
required to be paid from a fund in the State Treasury holding bond
investments to another State Treasury fund, and it is in the interest
of the State to transfer all or part of such amount in bonds, in
lieu of cash, because the amount of cash required to be transferred
is not needed for the immediate use of the fund to which such amount
is required to be paid.

16486. For the purposes of this article, the following definitions
shall apply:
(a) "Investing authority," with respect to any State Treasury
fund, means the state agency authorized by law to purchase or sell
bond investments on behalf of that fund.
(b) "Effective date" means the date on which the sale or transfer
of bonds is to take effect.
(c) "Market value" means the market value of the bonds to be sold,
purchased, or transferred, as that value is jointly determined by
the respective investing authorities of the funds affected by the
transaction, plus the accrued interest on the bonds, as of the
effective date. If the respective investing authorities fail to
agree, the "market value" of the bonds shall be determined by the
Treasurer.
(d) "Bond" means any bond, note, or other form of indebtedness
that is a legal investment for any state fund affected by the
transaction.

16487. The State Controller may establish procedures for the
purpose of carrying out the purposes set forth in Section 16485.
These procedures are exempt from the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing
with Section 11370), and Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3).

16488. The procedures authorized to be adopted by this article are
permissive only, and no provision hereof shall require any state
agency to approve or perform any act which, under such procedure, is
an essential step in the purchase, sale or transfer of bonds
thereunder.

16489. Any procedure established under this article shall provide
that the market value of the bonds shall be regarded, for the
purposes thereof, as the equivalent of cash in that amount, in any
purchase, sale or transfer of bonds in lieu of cash thereunder.

16490. Any procedure established under this article shall require
that in connection with any purchase, sale or transfer of bonds
thereunder, the State Controller, State Treasurer, Director of
Finance, and each investing authority shall be furnished a copy of:
(a) Every journal entry and other accounting instrument prepared
by the State Controller and the State Treasurer for the purpose of
recording such transaction on their accounts;
(b) The determination of market value and effective date made by
each investing authority in connection with such transaction.