What is Assembly Bill 182?
/Assembly Bill 182 was proposed by California Legislators to reform general obligation bonds issued by school and community college districts. It requires general obligation bonds to have:
– A maximum repayment ratio of 4 to 1
– A maximum financing term of 25 years for capital appreciation bonds
– A maximum interest rate of 8% for capital appreciation bonds
– An optional redemption for capital appreciation bonds after 10 years
– Two consecutive board meetings, one for information and one for adoption of documents, when issuing capital appreciation bonds
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