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Cal Gov Code 53856

DEERING'S CALIFORNIA CODES ANNOTATED

Copyright (c) 2013 by Matthew Bender & Company, Inc.
a member of the LexisNexis Group.
All rights reserved.
*** This document is current with urgency legislation through Chapter 800 of ***
the 2013 Regular Session and through Chapter 5 of the First Extra Session of the 2013-2014 Legislature.
GOVERNMENT CODE
Title 5. Local Agencies
Division 2. Cities, Counties, and Other Agencies
Part 1. Powers and Duties Common to Cities, Counties, and Other Agencies
Chapter 4. Financial Affairs
Article 7.6. Temporary Borrowing
GO TO CALIFORNIA CODES ARCHIVE DIRECTORY
Cal Gov Code 53856 (2013)
53856. Pledge of funds for payment
Any taxes, income, revenue, cash receipts, or other moneys of the local agency, including moneys
deposited in inactive or term deposits, may be pledged to the payment of the note or notes and the interest
thereon, except, however, that no moneys which, when received by the local agency, will be encumbered
for a special purpose may be pledged for the payment of the note or notes or the interest thereon unless an
equivalent amount of the proceeds from said note or notes is set aside for and used for said special purpose.
The resolution authorizing the issuance of the note or notes shall specify what taxes, income, revenue, cash
receipts or other moneys are pledged for the payment thereof. The note or notes and the interest thereon
shall be a first lien and charge against, and shall be payable from the first moneys received by the local
agency from, such pledged moneys.
For the purposes of this section, "revenue" includes, but is not limited to, revenue from the state and
federal governments.
HISTORY:
Added Stats 1963 ch 748 2, effective June 4, 1963. Amended Stats 1965 ch 107 5; Stats 1970 ch
232 2, effective June 22, 1970; Stats 1972 ch 552 1, effective August 4, 1972; Stats 1976 ch 390 1;
Stats 1982 ch 274 1, effective June 16, 1982.
NOTES:
Amendments:

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Cal Gov Code 53856
1965 Amendment:
Substituted "moneys" for "funds" wherever it appears in the section.

1970 Amendment:
Added "accrued accounts receivable from state or federal governments for which funds have been
committed and appropriated" after "cash receipts," wherever it appears.

1972 Amendment:
Deleted "accrued accounts receivable from state or federal governments for which funds have been
committed and appropriated" after "cash receipts," wherever it appears.

1976 Amendment:
Substituted the last two sentences for "The note or notes and the interest thereon are a first lien upon
charge against the taxes, income, revenue, cash receipts, or other moneys pledged for the payment thereof."

1982 Amendment:
Added the second paragraph.

Note
Stats 1982 ch 274 provides:
SEC. 3. This act does not constitute a change in, but is declaratory of, existing law. The Legislature
hereby finds and declares that the revenue of a local agency, for the purposes of temporary borrowing
pursuant to Sections 53856 and 53858 of the Government Code, includes revenue from federal and state
governments.

Cross References:
Other sources of payment: Gov C 53859.07.

Law Review Articles:

Review of Selected 1972 Code Legislation. 4 Pacific LJ 615.

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Cal Gov Code 53856
Hierarchy Notes:
Tit. 5, Div. 2 Note
Tit. 5, Div. 2, Pt. 1, Ch. 4 Note
Tit. 5, Div. 2, Pt. 1, Ch. 4, Art. 7.6 Note

NOTES OF DECISIONS 1. Generally

1. Generally
The Gov C 53856 lien securing county tax and revenue anticipation notes was a statutory lien which
survived the filing of the county's Chapter 9 petition. Alliance Capital Management L.P. v. County of
Orange (In re County of Orange) (1995, CD Cal) 189 BR 499, 1995 US Dist LEXIS 10013.