SECTIONS 5650-5652 - California Statutes

GOVERNMENT CODE

SECTION 5650-5652

5650. As used in this chapter, "public securities" means any issue
of bonds, notes, warrants or other evidences of indebtedness and the
interest coupons, if any, attached thereto, issued or proposed to be
issued by any public body.

5651. As used in this chapter, "public body" means any county, city
and county, city, municipal corporation, political subdivision,
public district, public corporation or public authority, or any
agency thereof.

5652. No public body shall enter into any contract which provides
that such public body shall be furnished any report relating to the
financial feasibility of any public project or of the issuance or
sale of any public securities if: (1) such contract is entered into
with any person engaged in the business of rating public securities
and distributing information concerning such rating to the public,
unless such contract provides that no rating will thereafter be given
or assigned for a period of two years by such person on any security
issued, or to be issued, by said public body or any entity to which
it is a party; (2) payment for any services provided for in such
contract is contingent upon a finding in such report that the public
undertaking or the issuance or sale of any public securities is
financially feasible; or (3) the contract fails to provide that it is
for personal services and nonassignable. Nothing in this section
shall prohibit any public body from entering into a contract solely
for a rating.