All bonds including refunding bonds issued by a district are legal investments for all trust funds and for the funds of all insurance companies, banks, both commercial and savings, and trust companies, and for the State School Fund, and for all sinking funds under the control of the State Treasurer. Whenever any money or funds may by law be invested in or loaned upon the security of bonds of cities, cities and counties, counties, or school districts, in the State, such money or funds may be invested in or loaned upon the security of the bonds of a district; and whenever bonds of cities, cities and counties, counties, or school districts by law may be used as security for the faithful performance or execution of any court or private trust or of any other act, bonds of the district may be so used.
BondsStatus As Investments
Section § 13311
This law states that bonds issued by a district, including those issued to refinance existing bonds, are considered legal investments for trust funds, insurance companies, banks, trust companies, and the State School Fund. These bonds can also be used as security for various financial and legal obligations, just like bonds from cities, counties, or school districts in California.
district bonds legal investments trust funds
Section § 13312
This law says that district bonds can be used by state or national banks in California as acceptable security when holding funds for the state, counties, cities, or other public entities.
All bonds of the district, to the same extent as bonds of any other municipality, are legal for use by any state or national bank or banks in the State as security for the deposit of funds of the State or of any county, city and county, city, municipality, or other public or municipal corporation within the State.
district bonds security for deposits state banks
