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California Law (Last Updated: March 4, 2014) |
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Government Code - GOV |
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Title 5. LOCAL AGENCIES |
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Division 1. CITIES AND COUNTIES |
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Part 1. POWERS AND DUTIES COMMON TO CITIES AND COUNTIES |
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Chapter 3. Bonds |
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ARTICLE 4. Limited Obligation Bonds |
Section 50665.7.
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The bonds and the resolution providing for their issuance shall state that the bonds are limited obligation bonds payable solely from revenues of the local agency pledged for that purpose.
In addition, the resolution of the legislative body providing for the issuance of limited obligation bonds shall specify the amount and source of revenue pledged therefor. The pledged revenue shall be sufficient to pay the following amounts annually, as they become due and payable:
(a) The interest on and the principal on the bonds.
(b) All payments required for compliance with the resolution authorizing issuance of the bonds or any other contract with the bondholders, including the creation of a sinking fund and reserve funds.
(c) All payments to meet any other obligations of the local agency which are charges, liens, or encumbrances on the pledged revenue.