Except as provided by the commission, when the boundary change is effected the territory which is transferred shall be relieved of annual tax liability for the outstanding indebtedness of the transferring county in the year following the year in which the election on the question of the boundary change is held.

Territory remaining in the transferring county when the boundary change is effected shall be relieved of annual tax liability for any outstanding indebtedness of that county which the commission determines is to be assumed by the accepting county. Such relief shall become effective in the year following the year in which the election on the question of the boundary change is held.

Terms Used In California Government Code 23262

  • Accepting county: means the county accepting transferred territory by reason of a county boundary change. See California Government Code 23231
  • Commission: means the County Boundary Review Commission. See California Government Code 23231
  • County: includes city and county. See California Government Code 19
  • Indebtedness: means the net obligations of a county arising from contract or through the operation of law, other than short-term operational expenses, but including and not limited to obligations arising under general obligation bonds, leases, joint powers agreements, and similar obligations or contracts entered into by the county prior to the date on which a petition is filed. See California Government Code 23231
  • Transferring county: means the county from which territory is, or is proposed to be, transferred by reason of a county boundary change. See California Government Code 23231

Nothing in this section shall be construed as in any way limiting the power of a bondholder to enforce contractual rights or affecting the ultimate liability of territory of the transferring county, or of the accepting county for bonded indebtedness in case of default.

(Added by Stats. 1974, Ch. 1393.)

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