Government Code section 56121

No change of organization or reorganization, or any term or condition of a change of organization or reorganization, shall impair the rights of any bondholder or other creditor of any county, city, or district. Nor shall any change of organization or reorganization, or any term or condition of a change of organization or reorganization, impair the contract rights, or contracts entered into by a public entity created by a joint exercise of powers agreement established pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code. Notwithstanding any provision of this division, or of any change of organization or reorganization, or any term or condition of a change of organization or reorganization, each and every bondholder or other creditor may enforce all of his or her rights in the same manner, and to the same extent, as if the change of organization, reorganization, term, or condition had not been made. Those rights may also be enforced against agencies, and their respective officers, as follows:

(a)

Annexation or detachment: against the city or district to, or from, which territory is annexed or detached.

(b)

Incorporation: against the newly incorporated city.

(c)

Formation: against the newly formed district.

(d)

Disincorporation: against the successor county receiving distribution of the remaining assets of the disincorporated city.

(e)

Dissolution: against the local agency receiving distribution of all or any part of the remaining assets of a dissolved district.

(f)

Consolidation: against the consolidated successor city or district.

(g)

Reorganization: against the affected city or district, successor county or newly incorporated city or newly formed district, as the case may be, for any of the above enumerated changes of organization or city incorporations which may be included in the particular reorganization.

Source: Section 56121, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=GOV§ionNum=56121.­ (accessed May 26, 2025).

Last Updated

May 12, 2025

§ 56121’s source at ca​.gov