Section 998.404 Of Article 5x. Veterans’ Bond Act Of 2008 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 5x.
998.404
. (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 to be remitted pursuant to
Section 16676 of the Government Code for the payment of debt service
on the bonds in each fiscal year, there shall be transferred to the
Payment Fund to pay the debt service all of the money in the fund,
not in excess of the amount of debt service then due and payable. If
the money transferred on the remittance dates is less than debt
service then due and payable, the balance remaining unpaid shall be
transferred to the General Fund out of the fund as soon as it shall
become available, together with interest thereon from the remittance
date until paid, 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 bond acts pursuant to this chapter. This
subdivision does not grant any lien on the fund, the Payment Fund, or
the moneys therein to the holders of any bonds issued under this
article. For the purposes of this subdivision, "debt service" means
the principal (whether due at maturity, by redemption, or
acceleration), premium, if any, or interest payable on any date with
respect 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.