California Code, Water Code - WAT § 81030

(a) Loans to local agencies that meet all of the following requirements:

(b) To guarantee, or purchase insurance for, local obligations if that action would improve credit market access or reduce interest rates.

(c) As a source of revenue or security for the payment of principal and interest on revenue or general obligation bonds issued by the state, if the proceeds of the sale of those bonds will be deposited in the fund.

(d) To earn interest.

(e) Technical assistance.

(f) For payment of the department's reasonable costs of administering the fund, not to exceed 4 percent of the fund.

(g) Grants, principal forgiveness, negative interest rates, and any other type of, or variation on, the types of assistance described in this section that is authorized by a federal capitalization grant deposited in the fund to the extent authorized and funded by that federal capitalization grant.