Section 37210 Of Chapter 4. Financial Powers From California Government Code >> Division 3. >> Title 4. >> Part 2. >> Chapter 4.
37210
. Newly incorporated cities that have not received revenues
from property taxes may issue temporary non-negotiable notes bearing
interest at a rate not exceeding 6 percent per annum to pay lawfully
incurred current expenses and the salaries and wages of officers and
employees. Said notes must be repaid on or before the last day of the
fiscal year in which the money is borrowed and the maturity date of
said notes shall not be later than said last day. The aggregate
amount of said notes shall not exceed 85 percent of the anticipated
revenues for the fiscal year in which the money is borrowed. Said
notes shall be repaid only from revenues received during or allocable
to the fiscal year in which the money is borrowed.