Section 998.304 Of Article 5w. Veterans’ Bond Act Of 2000 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 5w.
998.304
. (a) 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.
(b) 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 of, 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.
(c) On the dates on which funds are remitted pursuant to Section
16676 of the Government Code for the payment of the then maturing
principal of, and interest on, the bonds in each fiscal year, there
shall be returned to the General Fund all of the money in the fund,
not in excess of the principal of, and interest on, any bonds then
due and payable. 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 to the General Fund out of
the fund as soon as it shall become available, together with
interest thereon from the dates of maturity until returned, at the
same rate of interest as borne by the bonds, compounded semiannually.
Notwithstanding any other provision of law to the contrary, this
subdivision shall apply to all veterans farm and home purchase
contracts pursuant to this chapter. This subdivision does not grant
any lien on the fund or the moneys therein to holders of any bonds
issued under this article. For the purposes of the subdivision, "debt
service" means the principal (whether due at maturity, by
redemption, or acceleration), premium, if any, or interest payable on
any date to any series of bonds. This subdivision shall not apply,
however, in the case of any debt service that is payable from the
proceeds of any refunding bonds.