Section 14064 Of Article 4. Purchase, Sale, And Leasing Of Passenger Transportation Vehicles From California Government Code >> Division 3. >> Title 2. >> Part 5. >> Chapter 1. >> Article 4.

. (a) Equipment obligations shall be sold by the Treasurer, after a resolution requesting the sale has been adopted by the commission. Equipment obligations may be sold by public bid or by a private negotiated sale. The Treasurer may sell equipment obligations at a discount not to exceed 5 percent of the par value thereof.
  (b) Equipment obligations, and the interest thereon, are exempt from taxation in this state, except for gift taxes.