TITLE 5. LOCAL AGENCIES 50001-57607›DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES 53000-55821›PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES 53000-54999.7›CHAPTER 4. Financial Affairs 53600-53997›ARTICLE 2. Deposit of Funds 53630-53686
§ 53651.6
California Government Code · 2020-11 edition · updated 2026-10-04 · California
(a) To be an eligible security under subdivision (p) of Section 53651, a letter of credit shall be in such form and shall contain such provisions as the administrator may prescribe, and shall include all of the following terms:
(1) The administrator shall be the beneficiary of the letter of credit.
(2) The letter of credit shall be clean and irrevocable and shall provide that the administrator may draw upon it up to the total amount in the event of the failure of the depository savings association or federal association or if the depository savings association or federal association refuses to permit the withdrawal of funds by a treasurer.
(Added by Stats. 1986, Ch. 1132, Sec. 17.)
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