Section 998.089 Of Article 5t. Veterans Bond Act Of 1988 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 5t.
998.089
. All bonds authorized by this article, when duly sold and
delivered as provided herein, constitute valid and legally binding
general obligations of the State of California, and the full faith
and credit of the State of California is hereby pledged for the
punctual payment of both principal and interest thereof.
There shall be collected annually in the same manner and at the
same time as other state revenue is collected a sum of money, in
addition to the ordinary revenues of the state, sufficient to pay the
principal and interest on these bonds as provided herein, and all
officers required by law to perform any duty in regard to the
collection of state revenues shall collect this additional sum.
On the dates on which funds are remitted pursuant to Section 16676
of the Government Code for the payment of the then maturing
principal and interest of the bonds in each fiscal year, there shall
be returned into the General Fund all of the money in the Veterans'
Farm and Home Building Fund of 1943, not in excess of the principal
of and interest on any bonds then due and payable, except as herein
provided for the prior redemption of the bonds, and, if the money so
returned on the remittance dates is less than the principal and
interest then due and payable, the balance remaining unpaid shall be
returned into the General Fund out of the Veterans' Farm and Home
Building Fund of 1943 as soon as it shall become available, together
with interest thereon from the dates of maturity until so returned at
the same rate of interest as borne by the bonds, compounded
semiannually.