"In 1949, an alternative method for the distribution of secured property taxes, known as the “Teeter Plan”, was enacted in California. Upon adoption and implementation of this method by a county board of supervisors, local agencies for which the county acts as “bank” (including the county) and certain other public agencies located in the county will receive annually the full amount of their share of property taxes on the secured rolls regardless of the amount of delinquencies experienced by the county in collecting such taxes. The electing county bears the risk of loss of collection and in return receives interest and the delinquent penalties. Thus the Teeter Plan provides to the participating local agencies stable property tax receipts, eliminates collection risk, and provides an electing county with potential increased revenues from the delinquent penalties and interest collection. The Teeter Plan provisions are set forth in Sections 4701-4717 of the California Revenue and Taxation Code."

Reference: Page 221 California Debt Issuance Pimer - Teeter Plan Property Tax Receivables Financing - Definition and Purpose