LOS ANGELES -- The California Senate signed off on legislation that would place limits on school districts’ ability to issue capital appreciation bonds.

Assembly Bill 182, introduced by Assemblymember Joan Buchanan, D-Alamo, and Senator Ben Hueso, D-San Diego, and supported by Treasurer Bill Lockyer, would require the ratio of total debt service to principal for each bond series to not exceed four to one. It would also require bonds with maturities greater than 10 years to be subject to early redemption.

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