Today's Law As Amended


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SB-1205 School bonds: discounts.(2011-2012)



As Amends the Law Today


SECTION 1.

 Section 53532 of the Government Code is amended to read:

53532.
 The provisions of Section 53531 shall apply only to coupon rates and shall not affect the power of a local agency to sell bonds at a discount below par if permitted by law.  law, except that a school district or community college district shall not issue bonds at a discount exceeding 5 percent as provided by subdivision (e) of Section 15146 of the Education Code.  Any provision of law permitting bonds to be sold at a discount but specifying a maximum interest yield on bonds sold at a discount to the contrary notwithstanding, the bonds may be sold at a price yielding to the purchaser an effective interest rate of not to exceed 12 percent per year, payable as permitted by law, according to standard tables of bond values.