Economic Recovery Fund - The Economic Recovery Bond Act - Government - CA

Section § 99060

This law section explains that money from the sale of government bonds is put into a special account called the Economic Recovery Fund. The fund is in the State Treasury.

The money in the Economic Recovery Fund is invested to earn additional income, and this income goes back into the fund.

After covering necessary expenses, like issuing the bonds and other costs, any leftover money in the fund is moved to the General Fund to be used for the purposes outlined in this law.

(a) The proceeds of bonds issued and sold pursuant to this title shall be deposited in the Economic Recovery Fund, which is hereby established in the State Treasury.

(b) Moneys in the fund shall be invested in the Surplus Money Investment Fund, and any income from that investment shall be credited to the fund.

(c) Except for amounts necessary to pay costs of issuance, administrative costs, and any other costs payable in connection with the bonds, and to retire or refund bonds issued and sold pursuant to this title or bonds issued and sold under Title 17 (commencing with Section 99000), the remaining balance of the fund, as determined by the committee, shall be transferred to the General Fund to fund the purposes set forth in this title.

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Section § 99062

When the state sells bonds, the first money received must be used to reimburse the General Obligation Bond Expense Revolving Fund for any expenses it covered. This reimbursed money can then be reused for the same expenses, and the process repeats with any future bond sales.

Out of the first money realized from the sale of bonds as provided in this chapter, there shall be redeposited in the General Obligation Bond Expense Revolving Fund, established by Section 16724.5, the amount of all expenditures made for purposes specified in that section, and this money may be used for the same purpose and repaid in the same manner whenever additional bond sales are made.

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Section § 99064

This law explains how the money from selling bonds will be used. First, it's for reducing the state's budget deficit, using some of the funds to repay previous bonds. Second, it covers the costs related to issuing the bonds, like setting up reserves, paying interest, and expenses involved in managing these financial transactions.

The proceeds of the bonds issued and sold pursuant to this chapter shall be available for the purpose of providing an efficient, equitable, and economical means of doing both of the following:

(a) Funding the accumulated state budget deficit, which may be accomplished in part by refunding or repaying bonds issued pursuant to Title 17 (commencing with Section 99000).

(b) Paying costs relating to the issuance of bonds under this title, including, but not limited to, providing reserves, capitalized interest, and the costs of obtaining or entering into any ancillary obligation, costs associated with the repayment or refunding of the fiscal recovery bonds issued pursuant to Title 17 (commencing with Section 99000), and administrative and other costs associated with implementing the purposes of this title.

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