Thanks to all that responded to my question about the City's liability to
pay interest on "Non-66000" Developer Deposits. Let's hear it for Lisa
Hildabrand @ Carlsbad who pointed me towards Government Code Section 53079
which states:
"If a local public entity requires any person, on or after January 1, 1986
to furnish a security, in the form of cash or a cashier's check made
payable to the local public entitey, to gauarantee the performance of any
act or agreement related to a construction project, and if the local public
entity invests that cash..., the local public entity shall pay interest on
all, or any portion, of the amount of the balance of the security deposit
which is returned to the person who furnished the security if the security
is held by the local public entity for more than 30 days. The local public
entity shall pay interest on that amount. The minimum interest rate paid
shall be the average rate of return earned by the local public entity on
its investments during the four full calendar quarters last preceding the
return of the security deposit, less 1 full percentage point. Interest
shall be paid from the date that all, or any portion, of the balance of the
security deposit is returned to the person who furnished the security."
Applause......
Note that interest only need be paid on the portion returned, and only if
the entity had it in an interest bearing account.
