The Legislature finds and declares that local agencies may be unable to sell short-term notes to financial institutions at the end of the 1977-78 fiscal year and the beginning of the 1978-79 fiscal year due to the lack of certainty in their ability to raise revenue to repay such short-term notes. Therefore, another source of short-term financing is necessary to ensure the orderly delivery of basic programs and services during the beginning of the fiscal year. In order to meet this need, the state, in this article, hereby establishes a Local Agency Emergency Loan Fund to serve as the lender of last resort.

(Added by Stats. 1978, Ch. 292.)

Terms Used In California Government Code 16492

  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Local agency: means a city, county, city and county, special district, school district, county board of education, or community college district which levied a property tax during the 1977-78 fiscal year or for which a property tax was levied. See California Government Code 16493
  • State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
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