California Government Code

§ 53356.05

GOV § 53356.05 Effective Jan 1, 2003Div. 2 · Title 5 · Part 1 · Ch. 2.5 · Art. 5

Statute text

The bond indenture or other bond documents may provide that the legislative body agrees to notify one or more parties, including the underwriter or other first purchaser of the bonds, an appropriate national repository for bond information approved by the Securities and Exchange Commission, or the California Debt and Investment Advisory Commission, if specified events occur that may affect the market value of outstanding bonds. These events may include, but are not limited to, the following, for example:

(a)Withdrawal of funds from any reserve fund for the bonds, such that the balance in the fund falls below a specified percentage of the amount required by bond documents.

(b)Draw upon a letter of credit or other credit enhancement for the bonds.

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Legislative history

Amended by Stats. 2002, Ch. 454, Sec. 18. Effective January 1, 2003.