As used in this chapter, “public securities” means any issue of bonds, notes, warrants or other evidences of indebtedness and the interest coupons, if any, attached thereto, issued or proposed to be issued by any public body.
Chapter 8Contracts Concerning Public Securities
Section § 5650
In this law, 'public securities' refers to bonds, notes, warrants, or other forms of debt that any public organization can issue or plan to issue. It also includes any interest coupons that are attached to them.
public securities bonds notes warrants indebtedness interest coupons public body debt issuance evidences of indebtedness government bonds public debt instruments interest-bearing notes warrant issuance public finance municipal securities
Section § 5651
This section defines what is considered a "public body" under this specific chapter. It includes organizations like counties, cities, municipal corporations, political subdivisions, public districts, public corporations, and public authorities, or any agencies connected to them.
As used in this chapter, “public body” means any county, city and county, city, municipal corporation, political subdivision, public district, public corporation or public authority, or any agency thereof.
public body definition county municipal corporation political subdivision public district public corporation public authority agency local government government agency political entities municipal entities public entity scope local authority local entities
Section § 5652
This law says that public bodies in California are not allowed to enter into certain contracts related to financial reports about public projects or public securities. Specifically, they can't contract with people who rate public securities if that contract doesn't prevent those raters from evaluating the securities for two years afterward. Additionally, the contract can't make payment dependent on a report saying the project is feasible, and it must state that the services are personal and can't be given to someone else. However, public bodies can make contracts just for getting a rating.
No public body shall enter into any contract which provides that such public body shall be furnished any report relating to the financial feasibility of any public project or of the issuance or sale of any public securities if: (1) such contract is entered into with any person engaged in the business of rating public securities and distributing information concerning such rating to the public, unless such contract provides that no rating will thereafter be given or assigned for a period of two years by such person on any security issued, or to be issued, by said public body or any entity to which it is a party; (2) payment for any services provided for in such contract is contingent upon a finding in such report that the public undertaking or the issuance or sale of any public securities is financially feasible; or (3) the contract fails to provide that it is for personal services and nonassignable. Nothing in this section shall prohibit any public body from entering into a contract solely for a rating.
public body contracts financial feasibility reports public project evaluation public securities rating contract restrictions rating agencies financial feasibility service contracts nonassignable contracts report contingency public project contracts contractual agreements California public projects rating moratorium financial feasibility contingency
