California Government Code 5906 – Any bonds issued by a state or local government pursuant to this …
Any bonds issued by a state or local government pursuant to this chapter, or otherwise, and the purchasers or holders thereof, shall be exempt from the usury provisions of § 1 of Article XV of the California Constitution. Any loan, lease, installment sale, investment, forbearance of money, or other agreement between a user of the proceeds of or other moneys pledged to bonds and the issuer of the bonds, or entered into by or on behalf of the issuer of the bonds that provides for the use of the proceeds of the bonds or other moneys pledged to or securing the bonds, and the issuer of the bonds or any person acting on its behalf in connection with the foregoing shall be exempt from the usury provisions of § 1 of Article XV of the California Constitution. This section creates and authorizes exempted classes of transactions and persons pursuant to § 1 of Article XV of the California Constitution.
(Amended by Stats. 2006, Ch. 538, Sec. 231. Effective January 1, 2007.)
Terms Used In California Government Code 5906
- Bonds: means bonds, notes, warrants, bond anticipation notes, commercial paper, or other evidences of indebtedness, or lease, installment purchase, or other agreements or certificates of participation therein. See California Government Code 5902
- Forbearance: A means of handling a delinquent loan. A
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Government Code 17
- State or local government: means the state, any department, agency, board, commission, or authority of the state, or any city, city and county, county, public district, public corporation, authority, agency, board, commission, or other public entity. See California Government Code 5902
- Usury: Charging an illegally high interest rate on a loan. Source: OCC