SECTIONS 94140-94156

94140.  The authority shall have power to do all of the following: (a) Adopt bylaws for the regulation of its affairs and the conductof its business. (b) Adopt and have an official common seal and alter it atpleasure. (c) Sue and be sued in its own name, and plead and be impleaded. (d) Borrow money, issue bonds and notes and other obligations ofthe authority, and provide for the rights of the holders thereof asprovided in this chapter. (e) Acquire, lease as lessee, hold, and dispose of real andpersonal property or any interest therein, in the exercise of itspowers and the performance of its duties under this chapter. (f) Acquire, in the name of the authority by purchase orotherwise, on the terms and conditions and in the manner as it deemsproper, any land or interest therein and other property that itdetermines is reasonably necessary for any project, including anylands held by any county, municipality, or other governmentalsubdivision of the state; and to hold and use the same and to sell,convey, lease, or otherwise dispose of property so acquired, nolonger necessary for the authority's purposes. (g) Receive and accept, from any federal or other public agency orgovernmental entity, grants or loans for or in aid of theacquisition or construction of any project, and to receive and acceptaid or contributions from any other source, of either money,property, labor, or other things of value, to be held, used, andapplied only for the purposes for which the grants, loans, andcontributions may be made. (h) Prepare, or cause to be prepared, plans, specifications,designs, and estimates of costs for the construction and equipment ofprojects for participating colleges and participating nonprofitentities under this chapter, and from time to time to modify thoseplans, specifications, designs, or estimates. (i) By contract or contracts or by its own employees to construct,acquire, reconstruct, rehabilitate and improve, and furnish andequip, projects for participating colleges and participatingnonprofit entities. (j) Employ consulting engineers, architects, accountants,construction and financial experts, superintendents, and otheremployees and agents that may be necessary in its judgment and to fixtheir compensation. (k) Determine the location and character of any project to beundertaken pursuant to this chapter, and construct, reconstruct,repair, lease, as lessee or lessor, the same; enter into contractsfor any or all of those purposes; and designate a participatingprivate college or participating nonprofit entity as its agent todetermine the location and character of a project undertaken by theparticipating private college or participating nonprofit entity underthis chapter and, as the agent of the authority, construct,reconstruct, maintain, repair, operate, lease, as lessee or lessor,and regulate the same, and, as agent of the authority, to enter intocontracts for any and all of those purposes including contracts forthe management and operation of the project. (l) Establish rules and regulations for the use of a project orany portion thereof and to designate a participating private collegeor participating nonprofit entity as its agent to establish rules andregulations for the use of a project undertaken by the participatingprivate college or participating nonprofit entity. (m) Generally establish, revise from time to time, and charge andcollect, rates, rents, fees, and other charges for the use of and forthe services furnished or to be furnished by a project or anyportion thereof and contract with holders of its bonds and with anyother person, party, association, corporation, or other body, publicor private, in respect thereof. (n) Enter into any and all agreements or contracts, execute anyand all instruments, and do and perform any and all acts or thingsnecessary, convenient, or desirable for the purposes of the authorityor to carry out any power expressly given in this chapter. (o) Invest any moneys held in reserve or sinking funds, or anymoneys not required for immediate use or disbursement, at thediscretion of the authority, in obligations that are authorized bylaw for the investment of trust funds in the custody of theTreasurer. (p) Charge, and equitably apportion among participating privatecolleges and participating nonprofit entities, its administrativecosts and expenses incurred in the exercise of the powers and dutiesconferred by this chapter. (q) Finance, directly or through an intermediary, or purchase ortake assignments of, or make commitments to finance, directly orthrough an intermediary, or purchase or to take assignments of,student loans, to contract in advance for those student loans, and tocontract in advance for that financing, purchase, or assignment, andto pay any amounts payable in respect thereto. A student loan shallbe eligible for financing or purchase by the authority or forassignment hereunder regardless of the repayment status of the loan.Any pledge made to secure authority financing for student loanproject purposes shall be valid and binding from the time the pledgeis made. The revenues and receipts of property or interest in theproperty pledged and thereafter received by the authority, aparticipating college or public institution of higher education, aservicer, a trustee, or a custodian shall immediately be subject tothe lien of the pledge without any physical delivery thereof orfurther act, and the lien of any pledge shall be valid and bindingagainst all parties having claims of any kind in tort, contract, orotherwise against the authority, participating college or publicinstitution of higher education, servicer, trustee, or custodianirrespective of whether the parties have notice thereof. Neither theresolution nor any other instrument by which a pledge is created needbe recorded. (r) Hold or invest in student loans, create pools of studentloans, and sell bonds bearing interest on a taxable or tax-exemptbasis or other interests backed by the pools of student loans. (s) Contract or otherwise provide for the distribution,processing, origination, purchase, sale, servicing, securing, andcollection of student loans, the payment of fees, charges, andadministrative expenses in connection therewith, and the funding ofreserves required or provided for in any resolution authorizing, ortrust agreement securing, authority financing for student loanpurposes. (t) Assist in providing support to participating colleges orparticipating nonprofit entities to enhance the market acceptance ofpotential bond issues by the authority, including securing probableor actual credit ratings from nationally recognized bond ratingagencies, providing or obtaining liquidity or credit enhancement,providing or securing bond reserve funds, performing any other actiondeemed necessary by the authority, and incurring necessary expenses,payable from available authority funds, for any of these purposes.94141.  All expenses incurred in carrying out the provisions of thischapter shall be payable from funds provided the authority therefor,and no liability or obligation shall be incurred by the authorityhereunder beyond the extent to which moneys shall have been providedtherefor.94142.  The authority shall establish financial eligibilitystandards by studying the creditworthiness and earning capacity ofeach project together with the amount of pledged revenues, debtservice coverage, and basic security, in addition to establishingmachinery to monitor the ongoing compliance of each project withstate authority and bond indenture requirements.94143.  The authority is authorized from time to time to issue itsnegotiable notes for any corporate purpose and renew from time totime any notes by the issuance of new notes, whether the notes to berenewed have or have not matured. The authority may issue notespartly to renew notes or to discharge other obligations thenoutstanding and partly for any other purpose. The notes may beauthorized, sold, executed and delivered in the same manner as bonds.Any resolution or resolutions authorizing notes of the authority orany issue thereof may contain any provisions which the authority isauthorized to include in any resolution or resolutions authorizingbonds of the authority or any issue thereof, and the authority mayinclude in any notes any terms, covenants or conditions which it isauthorized to include in any bonds. All such notes shall be payablefrom revenues of the authority or other moneys available therefor andnot otherwise pledged, subject only to any contractual rights of theholders of any of its notes or other obligations then outstanding.94144.  (a) The authority is authorized from time to time to issueits negotiable bonds for any corporate purpose. In anticipation ofthe sale of those bonds, the authority may issue negotiable bondanticipation notes and may renew the same from time to time. Thenotes shall be paid from any revenues of the authority or othermoneys available therefor and not otherwise pledged, or from theproceeds of sale of the bonds of the authority in anticipation ofwhich they were issued. The notes shall be issued in the same manneras the bonds. The notes and the resolution or resolutions authorizingthe same may contain any provisions, conditions, or limitationswhich a bond resolution of the authority may contain. (b) Except as may otherwise be expressly provided by theauthority, every issue of its bonds or notes shall be generalobligations of the authority payable from any revenues or moneys ofthe authority available therefor and not otherwise pledged, subjectonly to any agreements with the holders of particular bonds or notespledging any particular revenues or moneys and subject to anyagreements with any participating institution. Notwithstanding thatthose bonds or notes may be payable from a special fund, they shallbe and be deemed to be for all purposes negotiable instruments,subject only to the provisions of those bonds or notes forregistration. (c) (1) The bonds may be issued as serial bonds or as term bonds,or the authority, in its discretion, may issue bonds of both types.The bonds shall be authorized by resolution of the authority, andshall bear the date or dates, mature at a time or times, notexceeding 50 years from their respective dates, bear interest at therate or rates, be payable at the time or times, be in denominations,be in a form, either coupon or registered, carry registrationprivileges, be executed in a manner, be payable in lawful money ofthe United States of America at a place or places, and be subject tothe terms of redemption that the resolution or resolutions mayprovide. The bonds or notes may be sold by the State Treasurer atpublic sale, or the authority, after giving due consideration to therecommendations of the participating institution or participatingnonprofit entity, may direct the State Treasurer to sell the bonds ornotes at private sale. (2) In the case of public sale, both of the following shall occur: (A) The bonds specified in the resolution shall be sold by theState Treasurer, at a time fixed by him or her, and upon notice thathe or she may deem advisable, or at the time to which the sale shallhave been continued, at public sale, upon sealed bids, to the bidderwhose bid will result in the lowest net interest cost on account ofthe bonds. (B) If no bids are received, or if the State Treasurer determinesthat the bids are not satisfactory, the State Treasurer may rejectall bids received, if any, and either readvertise or sell the bondsat private sale. (3) Pending preparation of the definitive bonds, the authority mayissue interim receipts or certificates that shall be exchanged forthe definitive bonds. (d) Any resolution or resolutions authorizing any bonds or anyissue of bonds may contain provisions, which shall be a part of thecontract with the holders of the bonds to be authorized, as to all ofthe following: (1) Pledging the full faith and credit of the authority orpledging all or any part of the revenues of a project or anyrevenue-producing contract or contracts made by the authority withany individual, partnership, corporation, or association or otherbody, public or private, to secure the payment of the bonds or of anyparticular issue of bonds, subject to those agreements withbondholders that may then exist. (2) The rentals, fees, and other charges to be charged, and theamounts to be raised in each year thereby, and the use anddisposition of the revenues. (3) The setting aside of reserves or sinking funds, and theregulation and disposition thereof. (4) Limitations on the right of the authority or its agent torestrict and regulate the use of the project. (5) Limitations on the purpose to which the proceeds of sale ofany issue of bonds then or thereafter to be issued may be applied andpledging those proceeds to secure the payment of the bonds or anyissue of the bonds. (6) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured, and therefunding of outstanding bonds. (7) The procedure, if any, by which the terms of any contract withbondholders may be amended or abrogated, the amount of bonds theholders of which must consent thereto, and the manner in which thatconsent may be given. (8) Limitations on the amount of moneys derived from the projectto be expended for operating, administrative, or other expenses ofthe authority. (9) Defining the acts or omissions to act that constitute adefault in the duties of the authority to holders of its obligations,and providing the rights and remedies of the holders in the event ofa default. (10) The mortgaging of a project and the site thereof for thepurpose of securing the bondholders. (e) Neither the members of the authority, nor any person executingthe bonds or notes, shall be liable personally on the bonds or notesor be subject to any personal liability or accountability by reasonof the issuance thereof. (f) The authority shall have power out of any funds availabletherefor to purchase its bonds or notes. The authority may hold,pledge, cancel, or resell the bonds, subject to and in accordancewith agreements with bondholders.94145.  In the discretion of the authority, any bonds issued underthe provisions of this chapter may be secured by a trust agreement byand between the authority and a corporate trustee or trustees, whichmay be any trust company or bank having the powers of a trustcompany within or without the state. Such trust agreement or theresolution providing for the issuance of such bonds may pledge orassign the revenues to be received or proceeds of any contract orcontracts pledged and may convey or mortgage the project or anyportion thereof. Such trust agreement or resolution providing for theissuance of such bonds may contain such provisions for protectingand enforcing the rights and remedies of the bondholders as may bereasonable and proper and not in violation of law, includingparticularly such provisions as have hereinabove been specificallyauthorized to be included in any resolution or resolutions of theauthority authorizing bonds thereof. Any bank or trust companyincorporated under the laws of this state which may act as depositaryof the proceeds of bonds or of revenues or other moneys may furnishsuch indemnifying bonds or pledge such securities as may be requiredby the authority. Any such trust agreement may set forth the rightsand remedies of the bondholders and of the trustee or trustees, andmay restrict the individual right of action by bondholders. Inaddition to the foregoing, any such trust agreement or resolution maycontain such other provisions as the authority may deem reasonableand proper for the security of the bondholders. All expenses incurredin carrying out the provisions of such trust agreement or resolutionmay be treated as a part of the cost of the operation of a project.94146.  (a) Bonds issued under the provisions of this chapter shallnot be deemed to constitute a debt or liability of the state or ofany political subdivision thereof or a pledge of the faith and creditof the state or of any political subdivision other than theauthority, but shall be payable solely from the funds hereinprovided. All bonds shall contain on the face thereof a statement tothe effect that neither the State of California nor the authorityshall be obligated to pay the same or the interest thereon exceptfrom revenues of the project or the portion thereof for which theyare issued and that neither the faith and credit nor the taxing powerof the State of California or of any political subdivision thereofis pledged to the payment of the principal of or the interest on thebonds. (b) The issuance of bonds under the provisions of this chaptershall not directly or indirectly or contingently obligate the stateor any political subdivision thereof to levy or to pledge any form oftaxation whatever therefor or to make any appropriation for theirpayment. No provision of this section shall prevent or be construedto prevent the authority from pledging its full faith and credit orthe full faith and credit of a participating private college orparticipating nonprofit entity to the payment of bonds or issue ofbonds authorized pursuant to this chapter.94147.  (a) The authority may fix, revise, charge, and collectrates, rents, fees, and charges for the use of and for the servicesfurnished or to be furnished by each project, and may contract withany person, partnership, association or corporation, or other body,public or private, in respect thereof. These rates, rents, fees, andcharges shall be fixed and adjusted in respect of the aggregate ofrents, rates, fees, and charges from the project so as to providefunds sufficient with other revenues or moneys, if any, to accomplishall of the following: (1) Pay the cost of maintaining, repairing, and operating theproject and each and every portion thereof, to the extent that thepayment of that cost has not otherwise been adequately provided for. (2) Pay the principal of, and the interest on, outstanding bondsof the authority issued in respect of that project as the same shallbecome due and payable. (3) Create and maintain reserves required or provided for in anyresolution authorizing, or trust agreement securing, bonds of theauthority. (b) (1) The rates, rents, fees, and charges referenced insubdivision (a) are not subject to supervision or regulation by anydepartment, commission, board, body, bureau, or agency of this stateother than the authority. A sufficient amount of the revenues derivedin respect of a project, except a part of those revenues that isnecessary to pay the cost of maintenance, repair, and operation andto provide reserves for renewals, replacements, extensions,enlargements, and improvements as may be provided for in theresolution authorizing the issuance of any bonds of the authority orin the trust agreement securing the same, shall be set aside atregular intervals provided in the resolution or trust agreement in asinking or other similar fund. (2) The fund established pursuant to paragraph (1) is pledged to,and charged with, the payment of the principal of and the intereston, the bonds as the same shall become due, and the redemption priceor the purchase price of bonds retired by call or purchase as thereinprovided. (3) The pledge required by paragraph (2) shall be valid andbinding from the time when the pledge is made. The rates, rents, feesand charges and other revenues or other moneys so pledged andthereafter received by the authority shall immediately be subject tothe lien of the pledge without any physical delivery thereof orfurther act, and the lien of that pledge shall be valid and bindingas against all parties having claims of any kind in tort, contract,or otherwise against the authority, irrespective of whether theparties have notice thereof. Neither the resolution nor any trustagreement by which a pledge is created need be filed or recordedexcept in the records of the authority. (4) The use and disposition of moneys to the credit of the sinkingor other similar fund shall be subject to the resolution authorizingthe issuance of those bonds or of that trust agreement. Except asmay otherwise be provided in that resolution or that trust agreement,the sinking or other similar fund shall be a fund for all of thosebonds issued to finance projects at a participating college, or bondsissued to finance a project of a participating nonprofit entity,without distinction or priority of one over another. (5) The authority, in the resolution or trust agreement, mayprovide that the sinking or other similar fund shall be either of thefollowing: (A) The fund for a particular project at a participating collegeand for the bonds issued to finance a particular project and may,additionally, permit and provide for the issuance of bonds having asubordinate lien in respect of the security herein authorized toother bonds of the authority and, in this case, the authority maycreate separate sinking or other similar funds in respect of thosesubordinate lien bonds. (B) The fund for a particular project of a participating nonprofitentity.94148.  Any holder of bonds issued under the provisions of thischapter or any of the coupons appertaining thereto, and the trusteeor trustees under any trust agreement, except to the extent therights herein given may be restricted by any resolution authorizingthe issuance of, or any such trust agreement securing, such bonds,may, either at law or in equity, by suit, action, mandamus or otherproceedings, protect and enforce any and all rights under the laws ofthe state or granted hereunder or under such resolution or trustagreement, and may enforce and compel the performance of all dutiesrequired by this chapter or by such resolution or trust agreement tobe performed by the authority or by any officer, employee or agentthereof, including the fixing, charging, and collecting of the rates,rents, fees, and charges herein authorized and required by theprovisions of such resolution or trust agreement to be fixed,established, and collected.94149.  All moneys received pursuant to the authority of thischapter, whether as proceeds from the sale of bonds or as revenues,shall be deemed to be trust funds to be held and applied solely asprovided in this chapter. Until the funds are applied as provided inthis chapter, and notwithstanding any other provision of law, themoneys may be invested in any obligations or securities authorized byresolutions of the authority authorizing the issuance of the bonds.Any officer with whom, or any bank or trust company with which, themoneys are deposited shall act as trustee of the moneys and shallhold and apply the moneys for the purposes hereof, subject to anyregulations adopted pursuant to this chapter and the resolutionauthorizing the issuance of any bonds or the trust agreement securingthe bonds.94150.  (a) The authority may issue bonds of the authority for thepurpose of refunding any bonds or notes of the authority thenoutstanding, including the payment of any redemption premium thereonand any interest accrued or to accrue to the earliest date ofredemption or subsequent date of redemption, purchase or maturity ofthe bonds, to be refunded and, if deemed advisable by the authority,for the additional purpose of paying all or any part of the cost ofconstructing and acquiring additions, improvements, extensions, orenlargements of a project or any portion of a project. (b) The proceeds of any bonds issued for the purpose of refundingoutstanding bonds may, in the discretion of the authority, be appliedto the purchase, retirement at maturity, or redemption prior tomaturity of any outstanding bonds either on their earliest redemptiondate or dates, any subsequent redemption date or dates, upon theirpurchase or maturity, or paid to a third person to assume theauthority's obligation to make the payments, and may, pending thatapplication, be placed in escrow to be applied to the purchase,retirement at maturity, or redemption on the date or dates determinedby the authority. (c) Any proceeds placed in escrow may, pending their use, beinvested and reinvested in obligations or securities authorized byresolutions of the authority, payable or maturing at the time ortimes as are appropriate to assure the prompt payment of theprincipal, interest, and redemption premium, if any, of theoutstanding bonds to be refunded at maturity or redemption of thebonds to be refunded either at their earliest redemption date ordates or any subsequent redemption date or dates. The interest,income and profits, if any, earned or realized on any such investmentmay also be applied to the payment of the outstanding bonds to berefunded or to the payment of interest on the refunding bonds. Afterthe terms of the escrow have been fully satisfied and carried out,any balance of the proceeds and interest, income and profits, if any,earned or realized on the investments thereof may be returned to theauthority for use by the authority. (d) The portion of the proceeds of any bonds issued for theadditional purpose of paying all or any part of the cost ofconstructing and acquiring additions, improvements, extensions, orenlargements of a project may be invested and reinvested inobligations or securities authorized by resolution of the authority,maturing not later than the time or times when the proceeds will beneeded for the purpose of paying all or any part of the cost. Theinterest, income, and profits, if any, earned or realized on theinvestment may be applied to the payment of all or any part of thecost or may be used by the authority in any lawful manner. (e) All of those refunding bonds are subject to this chapter inthe same manner and to the same extent as other bonds issued pursuantto this chapter.94151.  (a) The authority is hereby authorized to loan funds to aparticipating institution and to provide for the issuance of bondsfor the purpose of refinancing projects not originally fundedpursuant to this chapter, such refinancing to include the repaymentof costs, as defined in Section 94110, incurred for projects by theparticipating institution and which have a completion date subsequentto December 29, 1969. (b) For purposes of this section, "completion date" shall mean, inthe case of construction or renovation of a project, the date onwhich the notice of completion is filed, and, in the case of theacquisition of a project, the date of such acquisition. (c) All such bonds shall be subject to the provisions of thischapter in the same manner and to the same extent as other bondsissued pursuant to this chapter.94152.  Bonds and notes issued by the authority under the provisionsof this chapter are hereby made securities in which all banks,bankers, savings banks, trust companies, savings and loanassociations, investment companies and other persons carrying on abanking business, all insurance companies, insurance associations,and other persons carrying on an insurance business, and alladministrators, executors, guardians, trustees and other fiduciaries,and all other persons whatsoever who now are or may hereafter beauthorized to invest in bonds or other obligations of the state, mayproperly and legally invest any funds, including capital belonging tothem or within their control; and said bonds, notes or othersecurities or obligations are hereby made securities which mayproperly and legally be deposited with and received by any state ormunicipal officers or agency of the state for any purpose for whichthe deposit of bonds or other obligations of the state is now or mayhereafter be authorized by law.94154.  The State of California pledges and agrees with the holdersof the bonds, notes, and other obligations issued pursuant toauthority contained in this chapter, and with those parties who mayenter into contracts with the authority pursuant to this chapter,that the state will not limit, alter, or restrict the rights herebyvested in the authority and the participating private colleges andparticipating nonprofit entities to maintain, construct, reconstruct,and operate any project as defined in this chapter or to establishand collect the rents, fees, receipts, or other charges as may beconvenient or necessary to produce sufficient revenues to meet theexpenses of maintenance and operation thereof and to fulfill theterms of any agreements made with the holders of bonds authorized bythis chapter, and with the parties who may enter into contracts withthe authority pursuant to this chapter, or in any way impair therights or remedies of the holders of those bonds or those partiesuntil the bonds, together with interest thereon, are fully paid anddischarged and the contracts are fully performed on the part of theauthority. The authority as a public body corporate and politic mayinclude the pledge herein made in its bonds and contracts.94155.  On or before March 31 in each year the authority shall makean annual report of its activities for the preceding calendar year tothe Governor and the Legislature. Each such report shall set forth acomplete operating and financial statement covering the authority'soperations during the year. The authority shall cause an audit of itsbooks and accounts to be made at least once in each year bycertified public accountants. The authority shall also consult withthe California Postsecondary Education Commission and the Student AidCommission with respect to the need for additional financing ofstudent loan projects.94156.  The exercise of the powers granted by this chapter will bein all respects for the benefit of the people of this state, for theincrease of their commerce, welfare, and prosperity, and for theimprovement of their health and living conditions, and as theoperation and maintenance of a project by the authority willconstitute the performance of an essential public function, neitherthe authority nor its agent shall be required to pay any taxes orassessments upon or in respect of a project or any property acquiredor used by the authority under the provisions of this chapter, orupon the income therefrom, and any bonds issued under the provisionsof this chapter, their transfer and the income therefrom, shall atall times be free from taxation of every kind by the state and by themunicipalities and other political subdivisions in the state.