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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