Cal. Code Regs. tit. 2, § 1821 – Prior Use or Encumbrance of District Funds Outside Intent of Act.

(a) In considering an application for an apportionment, the Board may review the purposes for which the district has expended or encumbered proceeds from the sale of district bonds authorized to be issued at an election held on or after September 3, 1952. In the event the Board finds that such funds have been expended or encumbered outside the scope and intent of the Act and in contemplation of filing an application under the Act, but that the requirement for contribution of the amount so expended or encumbered in line with the provisions of Section 16031 of the Act will work a hardship on the district, the Board instead may reduce the amount of the requested apportionment by the amount so expended or encumbered, covering such portion of the project as it deems warranted.

Note: Authority cited: Section 16009, Education Code. Reference: Section 16031, Education Code.

1. Amendment of section and new Note filed 4-29-77; effective thirtieth day thereafter (Register 77, No. 18).