California Legal Codes and Statutes

§ 53600.5

Amended by Stats. 1996, Ch. 749, Sec. 5. Effective January 1, 1997.

When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control.

Cite this section

Cal. Gov. Code § 53600.5 (2026)
https://ca.codecond.com/codes/gov/title-5-local-agencies/division-2-cities-counties-and-other-agencies/part-1-powers-and-duties-common-to-cities-counties-and-other-agencies/chapter-4-financial-affairs/article-1-investment-of-surplus/section-53600.5

Other sections in Article 1 - Investment of Surplus

§ 53600§ 53600.3§ 53600.5§ 53600.6§ 53601.1§ 53601.2§ 53601.5§ 53602§ 53603§ 53604§ 53605§ 53606§ 53607§ 53608§ 53609§ 53610

This content is for reference, learning, and study purposes only. All legal text should be verified against the official California Legislative Information website, which is the authoritative source for California law. Data last processed: February 15, 2026.