Section 998.213 Of Article 5v. Veterans’ Bond Act Of 1996 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 5v.
998.213
. Notwithstanding any provision of the bond act, if the
Treasurer sells bonds under this article for which bond counsel has
issued an opinion to the effect that the interest on the bonds is
excludable from gross income for purposes of federal income tax,
subject to any conditions which may be designated, the Treasurer may
establish separate accounts for the investment of bond proceeds and
for the earnings on those proceeds, and may use those proceeds or
earnings to pay any rebate, penalty, or other payment required by
federal law or take any other action with respect to the investment
and use of bond proceeds required or permitted under federal law
necessary to maintain the tax-exempt status of the bonds or to obtain
any other advantage under federal law on behalf of the funds of this
state.