Section 907 Of Article 2. General Provisions From California Government Code >> Division 3.6. >> Title 1. >> Part 3. >> Chapter 1. >> Article 2.
907
. A local public entity, as defined in Section 900.4, may offset
any delinquent amount due it for services rendered to any other
local public entity. The offset may be charged, against any amount
reciprocally owing, upon the giving of 30 days advance written
notice, if no written dispute is received from the debtor within the
30-day notice period. Notices from the creditor or the debtor shall
be made through certified mail.
If the offset would result in the debtor's inability to meet
encumbered bonded indebtedness repayments, the debtor shall so state
in a written dispute within the time period stated above.
If a dispute notice is received and the dispute is subsequently
resolved in favor of the entity to whom an amount is due, interest on
the principal amount from the date that amount was originally owing
shall be assessed at the legal rate per annum established pursuant to
Section 685.010 of the Code of Civil Procedure.
For purposes of this section, an amount reciprocally owing
includes any tax revenue collected by a local public entity for
disbursement to another local public entity.