Section 5906 Of Chapter 11. Public Financing From California Government Code >> Division 6. >> Title 1. >> Chapter 11.
5906
. Any bonds issued by a state or local government pursuant to
this chapter, or otherwise, and the purchasers or holders thereof,
shall be exempt from the usury provisions of Section 1 of Article XV
of the California Constitution. Any loan, lease, installment sale,
investment, forbearance of money, or other agreement between a user
of the proceeds of or other moneys pledged to bonds and the issuer of
the bonds, or entered into by or on behalf of the issuer of the
bonds that provides for the use of the proceeds of the bonds or other
moneys pledged to or securing the bonds, and the issuer of the bonds
or any person acting on its behalf in connection with the foregoing
shall be exempt from the usury provisions of Section 1 of Article XV
of the California Constitution. This section creates and authorizes
exempted classes of transactions and persons pursuant to Section 1 of
Article XV of the California Constitution.