CA SB986

Requires unencumbered balances derived from tax-exempt bond proceeds to be used according to specified requirements rather than distributed to county auditor-controller.

Mandates successor agencies use bond proceeds from bonds sold on or before December 31, 2010, only for purposes specified in enforceable obligations entered into by the former redevelopment agency prior to dissolution.

Requires any bond proceeds not subject to an enforceable obligation, or for purposes that can no longer be achieved, to be used to defease bonds or purchase outstanding bonds on the open market for cancellation.

Takes effect immediately as an urgency statute to provide guidance to successor agencies on bond proceeds usage.