Section 130542 Of Article 4. Bonds And Notes From California Public Utilities Code >> Division 12. >> Chapter 5. >> Article 4.
130542
. (a) The proceeds of any bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the commission,
be applied to the purchase or retirement at maturity or redemption
of outstanding bonds either on their earliest or any subsequent
redemption date or upon the purchase or retirement at the maturity
thereof and may, pending such application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the commission.
(b) Pending that use, the escrowed proceeds may be invested and
reinvested by the commission or its trustee in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing at a time or times
appropriate to ensure the prompt payment of principal, interest, and
redemption premium, if any, of the outstanding bonds to be so
refunded. The interest, income, and profits, if any, earned or
realized on the investment may also be applied to the payment of the
outstanding bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of the
proceeds and interest, income, and profits, if any, earned or
realized on the investments thereof may be returned to the commission
for use by it in any lawful manner.