Section 35572 Of Article 8. Bonded Indebtedness Of School Districts From California Education Code >> Division 3. >> Title 2. >> Part 21. >> Chapter 3. >> Article 8.

. No territory shall be taken from any school district having any outstanding bonded indebtedness and made a part of another district where the action, if taken, would so reduce the last equalized assessed valuation of a district from which the territory was taken that the outstanding bonded indebtedness of the district would exceed 5 percent of the assessed valuation remaining in the district for each level maintained, on the date the reorganization is effective pursuant to Section 35766.