7.2.1 Local Bond Disclosures

Government Code Section 5852.1 requires the governing body of a local agency, before authorizing the issuance of debt with a term greater than 13 months, to provide a good faith estimate to the public of (1) the true interest cost of the bonds, (2) the finance charges of the bonds, (3) the amount of proceeds received from the sale of the bonds, and (4) the total amount to repaid. This good faith estimate may be provided by the underwriter, a municipal advisor, or a lender. If the proceeds are being lent by the local agency to a nongovernmental conduit borrower, the good faith estimate may be provided by the conduit borrower.