14554. (a) In order to provide for the financing of selected
projects, the Treasurer may issue tax-exempt or taxable notes under
this article. Proceeds of the sale of those notes shall be deposited
in the Transportation Financing Subaccount, which is hereby created
as a special trust fund in the State Highway Account in the State
Transportation Fund. The funds in the subaccount shall be available
for use as directed by the commission and administered by the
department and to pay costs associated with the issuance or further
security of the notes or for capitalized interest of up to 12 months.
(b) Any issue of notes may be secured and made more attractive to
capital markets through financial instruments, including, but not
limited to, the following:
(1) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private sector
financial institutions.
(2) Insurance and guarantees provided by any other agency of the
state.
14554.2. The Treasurer shall issue notes from time to time pursuant
to a resolution from the commission. Those pledges shall be governed
under Chapter 5.5 (commencing with Section 5450) of Division 6 of
Title 1 of the Government Code. The resolution may contain any of the
following provisions, which shall be a part of the contract with the
holders of the notes to be authorized:
(a) Provisions pledging receipt of future federal transportation
funds to secure the payment of the notes or of any particular issue
of notes, subject to those agreements with noteholders as may then
exist, and pledging moneys held in funds and accounts pursuant to the
note issue, or the earnings thereon. The Treasurer may authorize
classes of notes having different priority in the receipt of
available federal transportation funds.
(b) Provisions for the investment of proceeds of the notes or of
the moneys received by the Treasurer for repayment of the notes.
(c) Provisions setting aside reserves or sinking funds, and the
regulation and disposition thereof.
(d) Limitations on the issuance of additional notes, the terms
upon which additional notes may be issued and secured, and the
refunding of outstanding notes.
(e) The procedure, if any, by which the terms of any contract with
noteholders may be amended or abrogated, the amount of notes and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
(f) Definitions of acts or omissions to act that constitute a
default in the duties of the state to holders of the notes, and
provisions on the rights and remedies of the holders in the event of
a default.
14554.4. Any notes issued under this chapter may be secured by a
trust agreement, indenture, or resolution by and between the
commission and a trustee. The trustee may be the Treasurer or a bank
or trust company chartered under the laws of this state or of the
United States and designated by the Treasurer. The Treasurer may act
under the note resolution as the fiscal agent for the notes.
14554.6. The notes shall be authorized by resolution or resolutions
of the Treasurer, shall be in the form, shall bear the date or
dates, and shall mature at the time or times, as the resolution or
resolutions may provide, except that no note may mature more than 30
years from the date of its issue. The fixed or variable notes shall
bear interest at the rate or rates, be in the denominations, be in
the form, be executed in the manner, be payable in the medium of
payment at the place or places within or without the state, be
subject to the terms of redemption and contain the terms and
conditions, that the resolution or resolutions may provide. The notes
shall be sold at public or private sale by the Treasurer at, above,
or below the par value, on the terms and conditions and for the
consideration that the Treasurer shall determine.
14554.8. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, the amounts deposited in the State
Highway Account in the State Transportation Fund from federal
transportation funds, and pledged by the commission under this
chapter, are hereby continuously appropriated, without regard to
fiscal years, to the Treasurer for the purposes of, and in accordance
with, this chapter.
(b) Funds that are subject to Section 1 or 2 of Article XIX of the
California Constitution may be used as the state or local principal
match for any project that is eligible for federal matching funds and
is funded pursuant to this chapter.
14555. Upon request of the commission, the Treasurer may issue
refunding notes to refund any outstanding notes, and to pay costs
associated with that refunding.
14555.2. Whenever the Treasurer deems that it will increase the
salability or the price of the notes to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity or tax-exempt nature of the notes, the Treasurer may
obtain that legal opinion. Payment for those legal services shall be
made from the proceeds of the sale of the notes.
14555.4. The Treasurer may employ financial, engineering, or
transportation consultants or advisers, underwriters, and accountants
as may be necessary in his or her judgment in connection with the
issuance and sale of any notes of the Treasurer. Payment for these
services may be made out of the proceeds of the sale of the notes.
14555.6. Section 10295 of the Public Contract Code and Article 4
(commencing with Section 10335) of, and Article 5 (commencing with
Section 10355) of, Chapter 2 of Part 2 of Division 2 of the Public
Contract Code do not apply to agreements entered into by the
Treasurer pursuant to the sale of notes authorized under this
chapter.
14555.8. Notes issued under this chapter are a legal investment for
any state special or trust fund notwithstanding any provision of law
limiting the investments that may be made by the special or trust
fund. The notes shall be legal investments in which all public
officers and public bodies of the state, its political subdivisions,
all municipalities and municipal subdivisions, all insurance
companies and associations and other persons carrying on an insurance
business, all banks, savings and loan associations, savings banks
and savings associations, investment companies, all administrators,
guardians, executors, trustees and other fiduciaries, and all other
persons authorized to invest in notes or in other obligations of the
state, may properly and legally invest funds, including capital, in
their control or belonging to them. The notes may be used as security
for public deposits. The notes are also securities that may properly
and legally be deposited with and received by all public officers
and bodies of state or any agency or political subdivision of the
state and all municipalities and public corporations for any purpose
for which the deposit of notes or other obligations of the state is
authorized by law, including deposits to secured public funds.
14555.9. Notes issued under the provisions of this chapter may not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, or a pledge of the full faith and
credit of the state or of any political subdivision thereof, but
shall be payable solely from the funds and revenues pledged therefor.
All the notes shall contain on their face a statement to the effect
that the State of California shall not be obligated to pay the
principal, or the interest on the notes, except from the revenues
received by the Treasurer as shall be provided by the documents
governing the revenue note issuance, and that neither the faith and
credit nor the taxing power of the State of California or of any of
its political subdivisions is pledged to the payment of the principal
or interest on the notes. The issuance of notes under this part
shall not directly or indirectly or contingently obligate the state
or any of its political subdivisions to levy or to pledge any form of
taxation whatever or to make any appropriation for their payment.
14554. (a) In order to provide for the financing of selected
projects, the Treasurer may issue tax-exempt or taxable notes under
this article. Proceeds of the sale of those notes shall be deposited
in the Transportation Financing Subaccount, which is hereby created
as a special trust fund in the State Highway Account in the State
Transportation Fund. The funds in the subaccount shall be available
for use as directed by the commission and administered by the
department and to pay costs associated with the issuance or further
security of the notes or for capitalized interest of up to 12 months.
(b) Any issue of notes may be secured and made more attractive to
capital markets through financial instruments, including, but not
limited to, the following:
(1) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private sector
financial institutions.
(2) Insurance and guarantees provided by any other agency of the
state.
14554.2. The Treasurer shall issue notes from time to time pursuant
to a resolution from the commission. Those pledges shall be governed
under Chapter 5.5 (commencing with Section 5450) of Division 6 of
Title 1 of the Government Code. The resolution may contain any of the
following provisions, which shall be a part of the contract with the
holders of the notes to be authorized:
(a) Provisions pledging receipt of future federal transportation
funds to secure the payment of the notes or of any particular issue
of notes, subject to those agreements with noteholders as may then
exist, and pledging moneys held in funds and accounts pursuant to the
note issue, or the earnings thereon. The Treasurer may authorize
classes of notes having different priority in the receipt of
available federal transportation funds.
(b) Provisions for the investment of proceeds of the notes or of
the moneys received by the Treasurer for repayment of the notes.
(c) Provisions setting aside reserves or sinking funds, and the
regulation and disposition thereof.
(d) Limitations on the issuance of additional notes, the terms
upon which additional notes may be issued and secured, and the
refunding of outstanding notes.
(e) The procedure, if any, by which the terms of any contract with
noteholders may be amended or abrogated, the amount of notes and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
(f) Definitions of acts or omissions to act that constitute a
default in the duties of the state to holders of the notes, and
provisions on the rights and remedies of the holders in the event of
a default.
14554.4. Any notes issued under this chapter may be secured by a
trust agreement, indenture, or resolution by and between the
commission and a trustee. The trustee may be the Treasurer or a bank
or trust company chartered under the laws of this state or of the
United States and designated by the Treasurer. The Treasurer may act
under the note resolution as the fiscal agent for the notes.
14554.6. The notes shall be authorized by resolution or resolutions
of the Treasurer, shall be in the form, shall bear the date or
dates, and shall mature at the time or times, as the resolution or
resolutions may provide, except that no note may mature more than 30
years from the date of its issue. The fixed or variable notes shall
bear interest at the rate or rates, be in the denominations, be in
the form, be executed in the manner, be payable in the medium of
payment at the place or places within or without the state, be
subject to the terms of redemption and contain the terms and
conditions, that the resolution or resolutions may provide. The notes
shall be sold at public or private sale by the Treasurer at, above,
or below the par value, on the terms and conditions and for the
consideration that the Treasurer shall determine.
14554.8. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, the amounts deposited in the State
Highway Account in the State Transportation Fund from federal
transportation funds, and pledged by the commission under this
chapter, are hereby continuously appropriated, without regard to
fiscal years, to the Treasurer for the purposes of, and in accordance
with, this chapter.
(b) Funds that are subject to Section 1 or 2 of Article XIX of the
California Constitution may be used as the state or local principal
match for any project that is eligible for federal matching funds and
is funded pursuant to this chapter.
14555. Upon request of the commission, the Treasurer may issue
refunding notes to refund any outstanding notes, and to pay costs
associated with that refunding.
14555.2. Whenever the Treasurer deems that it will increase the
salability or the price of the notes to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity or tax-exempt nature of the notes, the Treasurer may
obtain that legal opinion. Payment for those legal services shall be
made from the proceeds of the sale of the notes.
14555.4. The Treasurer may employ financial, engineering, or
transportation consultants or advisers, underwriters, and accountants
as may be necessary in his or her judgment in connection with the
issuance and sale of any notes of the Treasurer. Payment for these
services may be made out of the proceeds of the sale of the notes.
14555.6. Section 10295 of the Public Contract Code and Article 4
(commencing with Section 10335) of, and Article 5 (commencing with
Section 10355) of, Chapter 2 of Part 2 of Division 2 of the Public
Contract Code do not apply to agreements entered into by the
Treasurer pursuant to the sale of notes authorized under this
chapter.
14555.8. Notes issued under this chapter are a legal investment for
any state special or trust fund notwithstanding any provision of law
limiting the investments that may be made by the special or trust
fund. The notes shall be legal investments in which all public
officers and public bodies of the state, its political subdivisions,
all municipalities and municipal subdivisions, all insurance
companies and associations and other persons carrying on an insurance
business, all banks, savings and loan associations, savings banks
and savings associations, investment companies, all administrators,
guardians, executors, trustees and other fiduciaries, and all other
persons authorized to invest in notes or in other obligations of the
state, may properly and legally invest funds, including capital, in
their control or belonging to them. The notes may be used as security
for public deposits. The notes are also securities that may properly
and legally be deposited with and received by all public officers
and bodies of state or any agency or political subdivision of the
state and all municipalities and public corporations for any purpose
for which the deposit of notes or other obligations of the state is
authorized by law, including deposits to secured public funds.
14555.9. Notes issued under the provisions of this chapter may not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, or a pledge of the full faith and
credit of the state or of any political subdivision thereof, but
shall be payable solely from the funds and revenues pledged therefor.
All the notes shall contain on their face a statement to the effect
that the State of California shall not be obligated to pay the
principal, or the interest on the notes, except from the revenues
received by the Treasurer as shall be provided by the documents
governing the revenue note issuance, and that neither the faith and
credit nor the taxing power of the State of California or of any of
its political subdivisions is pledged to the payment of the principal
or interest on the notes. The issuance of notes under this part
shall not directly or indirectly or contingently obligate the state
or any of its political subdivisions to levy or to pledge any form of
taxation whatever or to make any appropriation for their payment.
14554. (a) In order to provide for the financing of selected
projects, the Treasurer may issue tax-exempt or taxable notes under
this article. Proceeds of the sale of those notes shall be deposited
in the Transportation Financing Subaccount, which is hereby created
as a special trust fund in the State Highway Account in the State
Transportation Fund. The funds in the subaccount shall be available
for use as directed by the commission and administered by the
department and to pay costs associated with the issuance or further
security of the notes or for capitalized interest of up to 12 months.
(b) Any issue of notes may be secured and made more attractive to
capital markets through financial instruments, including, but not
limited to, the following:
(1) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private sector
financial institutions.
(2) Insurance and guarantees provided by any other agency of the
state.
14554.2. The Treasurer shall issue notes from time to time pursuant
to a resolution from the commission. Those pledges shall be governed
under Chapter 5.5 (commencing with Section 5450) of Division 6 of
Title 1 of the Government Code. The resolution may contain any of the
following provisions, which shall be a part of the contract with the
holders of the notes to be authorized:
(a) Provisions pledging receipt of future federal transportation
funds to secure the payment of the notes or of any particular issue
of notes, subject to those agreements with noteholders as may then
exist, and pledging moneys held in funds and accounts pursuant to the
note issue, or the earnings thereon. The Treasurer may authorize
classes of notes having different priority in the receipt of
available federal transportation funds.
(b) Provisions for the investment of proceeds of the notes or of
the moneys received by the Treasurer for repayment of the notes.
(c) Provisions setting aside reserves or sinking funds, and the
regulation and disposition thereof.
(d) Limitations on the issuance of additional notes, the terms
upon which additional notes may be issued and secured, and the
refunding of outstanding notes.
(e) The procedure, if any, by which the terms of any contract with
noteholders may be amended or abrogated, the amount of notes and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
(f) Definitions of acts or omissions to act that constitute a
default in the duties of the state to holders of the notes, and
provisions on the rights and remedies of the holders in the event of
a default.
14554.4. Any notes issued under this chapter may be secured by a
trust agreement, indenture, or resolution by and between the
commission and a trustee. The trustee may be the Treasurer or a bank
or trust company chartered under the laws of this state or of the
United States and designated by the Treasurer. The Treasurer may act
under the note resolution as the fiscal agent for the notes.
14554.6. The notes shall be authorized by resolution or resolutions
of the Treasurer, shall be in the form, shall bear the date or
dates, and shall mature at the time or times, as the resolution or
resolutions may provide, except that no note may mature more than 30
years from the date of its issue. The fixed or variable notes shall
bear interest at the rate or rates, be in the denominations, be in
the form, be executed in the manner, be payable in the medium of
payment at the place or places within or without the state, be
subject to the terms of redemption and contain the terms and
conditions, that the resolution or resolutions may provide. The notes
shall be sold at public or private sale by the Treasurer at, above,
or below the par value, on the terms and conditions and for the
consideration that the Treasurer shall determine.
14554.8. (a) Notwithstanding Section 13340 of the Government Code
or any other provision of law, the amounts deposited in the State
Highway Account in the State Transportation Fund from federal
transportation funds, and pledged by the commission under this
chapter, are hereby continuously appropriated, without regard to
fiscal years, to the Treasurer for the purposes of, and in accordance
with, this chapter.
(b) Funds that are subject to Section 1 or 2 of Article XIX of the
California Constitution may be used as the state or local principal
match for any project that is eligible for federal matching funds and
is funded pursuant to this chapter.
14555. Upon request of the commission, the Treasurer may issue
refunding notes to refund any outstanding notes, and to pay costs
associated with that refunding.
14555.2. Whenever the Treasurer deems that it will increase the
salability or the price of the notes to obtain, prior to or after
sale, a legal opinion, other than that of the Attorney General, as to
the validity or tax-exempt nature of the notes, the Treasurer may
obtain that legal opinion. Payment for those legal services shall be
made from the proceeds of the sale of the notes.
14555.4. The Treasurer may employ financial, engineering, or
transportation consultants or advisers, underwriters, and accountants
as may be necessary in his or her judgment in connection with the
issuance and sale of any notes of the Treasurer. Payment for these
services may be made out of the proceeds of the sale of the notes.
14555.6. Section 10295 of the Public Contract Code and Article 4
(commencing with Section 10335) of, and Article 5 (commencing with
Section 10355) of, Chapter 2 of Part 2 of Division 2 of the Public
Contract Code do not apply to agreements entered into by the
Treasurer pursuant to the sale of notes authorized under this
chapter.
14555.8. Notes issued under this chapter are a legal investment for
any state special or trust fund notwithstanding any provision of law
limiting the investments that may be made by the special or trust
fund. The notes shall be legal investments in which all public
officers and public bodies of the state, its political subdivisions,
all municipalities and municipal subdivisions, all insurance
companies and associations and other persons carrying on an insurance
business, all banks, savings and loan associations, savings banks
and savings associations, investment companies, all administrators,
guardians, executors, trustees and other fiduciaries, and all other
persons authorized to invest in notes or in other obligations of the
state, may properly and legally invest funds, including capital, in
their control or belonging to them. The notes may be used as security
for public deposits. The notes are also securities that may properly
and legally be deposited with and received by all public officers
and bodies of state or any agency or political subdivision of the
state and all municipalities and public corporations for any purpose
for which the deposit of notes or other obligations of the state is
authorized by law, including deposits to secured public funds.
14555.9. Notes issued under the provisions of this chapter may not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, or a pledge of the full faith and
credit of the state or of any political subdivision thereof, but
shall be payable solely from the funds and revenues pledged therefor.
All the notes shall contain on their face a statement to the effect
that the State of California shall not be obligated to pay the
principal, or the interest on the notes, except from the revenues
received by the Treasurer as shall be provided by the documents
governing the revenue note issuance, and that neither the faith and
credit nor the taxing power of the State of California or of any of
its political subdivisions is pledged to the payment of the principal
or interest on the notes. The issuance of notes under this part
shall not directly or indirectly or contingently obligate the state
or any of its political subdivisions to levy or to pledge any form of
taxation whatever or to make any appropriation for their payment.
