(a) A local agency may borrow money pursuant to this article, the indebtedness to be represented by a grant anticipation note or notes issued to the lender pursuant to this article. The money borrowed may be used and expended by the local agency solely for the purpose for which the grant or loan is to be received.

(b) Proceeds of sales or funds set aside for the repayment of any notes issued pursuant to this article shall not be invested for a term that exceeds the term of the notes.

Terms Used In California Government Code 53859.02

  • Grant anticipation note: means a note issued upon the security of specified accounts receivable from state or federal governments, including, without limitation, grants, loans, or a combination of both, for which funds have been appropriated and committed to a local agency. See California Government Code 53859
  • Loan: includes , but is not limited to, a borrowing by a local agency represented or to be represented by bonds of a local agency. See California Government Code 53859
  • local agency: means county, city and county, city, school district, community college district, or any other municipal or public corporation or district. See California Government Code 53859

(Amended by Stats. 1995, Ch. 784, Sec. 22. Effective January 1, 1996.)

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