California Government Code 16780 – (a) The committee may provide for the issuance and sale or …
(a) The committee may provide for the issuance and sale or exchange of refunding bonds for the purpose of redeeming, retiring, or purchasing for retirement, outstanding bonds at or before their maturity, if the committee determines that refunding is necessary or advisable in order to do either of the following:
(1) To effect a favorable reorganization of the debt structure of the state.
Terms Used In California Government Code 16780
- Bond: means a state general obligation bond issued pursuant to an act adopting the provisions of this chapter. See California Government Code 16722
- Committee: means the finance committee or other body created by that act and authorized to cause bonds to be issued by the adoption of a resolution or resolutions. See California Government Code 16722
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- State: means the State of California, unless applied to the different parts of the United States. See California Government Code 18
- Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10
(2) To effect a saving in debt service cost to the state, as measured by the present value of that saving.
(b) When determining debt service savings for purposes of paragraph (2) of subdivision (a), the committee shall include, as interest on a refunded bond, the interest, if any, that will result from a related hedging contract, as described in subparagraph (A) of paragraph (2) of subdivision (d) of Section 16731. The committee may, when determining debt service savings, for purposes of paragraph (2) of subdivision (a), base the interest of a refunding bond upon the effective fixed interest rate under a hedging contract described in clause (ii) of subparagraph (B) of paragraph (1) of subdivision (d) of Section 16731.
(Amended by Stats. 2009, Ch. 205, Sec. 14. (SB 826) Effective January 1, 2010.)