Section 60356 Of Chapter 9.5. California Special District Consolidation Assistance Program From California Government Code >> Division 1. >> Title 6. >> Chapter 9.5.

. The board of supervisors may cancel the repayment of any loan made pursuant to this chapter for special districts which successfully complete a consolidation, merger, or reorganization. If the board of supervisors cancels a loan, it shall be considered a grant and no repayment shall be required.