SECTIONS 5100-5108 - California Statutes

GOVERNMENT CODE

SECTION 5100-5108

5100. This chapter shall be liberally construed to the end that the
purpose hereof may be made effective.

5101. As used in this chapter, "bonds" means State, county,
municipal, or other public corporation or district bonds.

5102. As used in this chapter, "guarantor" means the person or
persons guaranteeing the payment of bonds, the repurchase thereof, or
the payment or repurchase of any interest therein.

5103. As used in this chapter, "issuing body" means the State, any
subdivision thereof, municipality, public corporation, or district.

5104. As used in this chapter, "order" means declaration,
proclamation, or order of any officer or court having jurisdiction to
make the declaration, proclamation, or order.

5105. Whenever by operation of law or by order the bonded
indebtedness of any issuing body is reduced in amount, the interest
thereon reduced, the time for the payment thereof or of any tax or
assessment levied to pay the indebtedness, the interest thereon, or
any portion of both or either of them, extended, or any other term or
condition for the payment thereof altered, the obligations of all
guarantors are reduced as to principal and interest, or either of
them, extended as to the time of payment and altered as to any and
all terms thereof in the same manner and to the same extent as the
obligation or obligations of the issuing body and the tax or
assessment payers, or either of them, are reduced, extended or
altered.

5106. Whenever by operation of law or by order any issuing body
defaults in the payment of its bonded indebtedness, the obligations
of guarantors shall be extended for the period of the default but not
to exceed three years after the commencement thereof.

5107. The relief of guarantors is limited to the extent of defaults
in principal, interest, or both principal and interest of the bonds
guaranteed.

5108. If the guarantors function in the capacity of trustee or if
the custody of the bonds is in the possession of a trustee, and
administered by the trustee, he shall be required to distribute
interest and principal, in the proportion that each is received by
him, to the beneficiaries under the trust.