Section 53606 Of Article 1. Investment Of Surplus From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 4. >> Article 1.

. The bonds purchased, which were issued by the purchaser, may be canceled either in satisfaction or sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless in its discretion, the legislative body holds then uncanceled. While held uncanceled, the bonds may be resold.