Any local public agency that pledges sales or retail transaction and use tax revenues received from taxes imposed by another public agency for bond payments or payment of other security obligations shall, in any validation action it files involving those bonds or other obligations, provide written notice thereof to the public agency imposing the taxes pledged as security for the bonds or other obligations at the time it files the validation action.
§ 870.5.Notice to Public Agency Imposing Taxes Pledged As Security At Time of Filing Action
Title 10. Actions In Particular Cases · Chapter 9. Validating Proceedings · Enacted 1998 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 870.5 requires a local public agency that pledges another agency's sales or use tax revenue to secure bonds to notify the taxing agency in writing when it files a validation action involving those bonds or obligations.
Full Text of § 870.5
Plain-English Summary
Some bond financings get more complicated than a single agency pledging its own revenue. When a local public agency pledges sales tax or retail transaction and use tax revenue collected by a different public agency to back bond payments or other security obligations, § 870.5 makes sure the taxing agency doesn't get left out of the loop.
If the borrowing agency files a validation action under this chapter involving those bonds or obligations, it must give written notice of the filing to the agency that imposes the pledged taxes, at the same time it files the action.
Frequently Asked Questions
When does this notice requirement apply?
When a local public agency pledges another agency's sales or use tax revenue to secure bonds or obligations and files a validation action about them.
Who must be notified, and when?
The public agency imposing the pledged taxes, notified in writing at the time the validation action is filed.
Amendment History
Added by Stats. 1998, Ch. 360, Sec. 1. Effective January 1, 1999.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: pledged tax revenue bond validation notice california