Grant or loan funds from the state or federal government for any legally authorized capital improvement for which the local agency is authorized to expend moneys, when stated by the granting or loaning authority to be committed, appropriated and payable to the local agency on a specified date or dates, or event or events, shall be pledged for the payment of the grant anticipation note or notes and the interest thereon. The note or notes and the interest thereon are a first lien upon and charge against the grant or loan funds.

(Amended by Stats. 1978, Ch. 637.)

Terms Used In California Government Code 53859.06

  • 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
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • 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
  • 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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