SECTIONS 5400-5404 - California Statutes

GOVERNMENT CODE

SECTION 5400-5404

5400. "Public body" as used in this chapter means any county, city
and county, city, public district, public authority or other public
corporation which is authorized to issue bonds.

5401. "Bonds" as used in this chapter means any bonds or other
evidences of indebtedness the principal and interest of which are
payable or may be paid from ad valorem taxes or assessments levied by
or on behalf of a public body.

5402. "Governing body" as used in this chapter means the board of
supervisors, city council, board of directors or other legislative or
governing body which has the power to fix the annual tax or
assessment levy for a public body.

5403. When bonds to be issued by or on behalf of a public body have
been authorized by an election or other method provided by law, and
where it is expected that all or any part of such bonds will be sold
at such time that principal or interest on such bonds will become due
before the proceeds of a tax or assessment levied after such sale
would be available to pay such principal or interest, the governing
body, at the time of fixing the annual tax or assessment levy, may
levy a tax or assessment, as the case may be, in an amount clearly
sufficient to pay that portion of the principal of and interest on
said bonds which it is expected will become due before the proceeds
of the next succeeding tax or assessment levy will be available.

5404. If at any time following the levy of the tax or assessment
authorized by Section 5403, the board, council or other body having
the power to sell the bonds shall determine that the bonds are not to
be issued and sold, the proceeds of the tax or assessment so levied
to pay such principal or interest may be transferred to the general
fund of the public body.