California Streets and Highways Code

§ 8775

SHC § 8775 Effective Jun 6, 1985Div. 10 · Part 12

Statute text

If a deficiency occurs in the redemption fund with which to pay past due bonds, past due interest, or bonds or interest which will become due during the current tax collecting year, but it does not appear to the treasurer that there will be an ultimate loss to the bondholders, he shall pay matured bonds as presented and make interest payments when due as long as there are available funds in the redemption fund, in the following order of priority:

(1)All matured interest payments shall be made before the principal of any bonds is paid.

(2)Interest on bonds of earlier maturity shall be paid before interest on bonds of later maturity.

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Legislative history

Amended by Stats. 1985, Ch. 65, Sec. 27. Effective June 6, 1985.