State Codes and Statutes

Statutes > California > Gov > 53345-53365.7

GOVERNMENT CODE
SECTION 53345-53365.7



53345.  Whenever the legislative body deems it necessary for the
community facilities district to incur a bonded indebtedness, it
shall, by resolution, set forth all of the following:
   (a) A declaration of the necessity for the indebtedness.
   (b) The purpose for which the proposed debt is to be incurred.
   (c) The amount of the proposed debt. The legislative body may
provide for a reduction in the amount of proposed debt in compliance
with the provisions of Section 53313.9.
   (d) The time and place for a hearing by the legislative body on
the proposed debt authorization.



53345.3.  The amount of the proposed bonded indebtedness may include
all costs and estimated costs incidental to, or connected with, the
accomplishment of the purpose for which the proposed debt is to be
incurred, including, but not limited to, the estimated costs of
construction or acquisition of buildings, or both; acquisition of
land, rights-of-way, water, sewer, or other capacity or connection
fees; lease payments for school facilities, satisfaction of
contractual obligations relating to expenses or the advancement of
funds for expenses existing at the time the bonds are issued pursuant
to this chapter; architectural, engineering, inspection, legal,
fiscal, and financial consultant fees; bond and other reserve funds;
discount fees; interest on any bonds of the district estimated to be
due and payable within two years of issuance of the bonds; election
costs; and all costs of issuance of the bonds, including, but not
limited to, fees for bond counsel, costs of obtaining credit ratings,
bond insurance premiums, fees for letters of credit, and other
credit enhancement costs, and printing costs. Bonds may not be issued
pursuant to this chapter to fund any of the services specified in
Section 53313; however, bonds may be issued to fund capital
facilities to be used in providing these services.



53345.8.  (a) The legislative body may sell bonds pursuant to this
chapter only if it determines prior to the award of sale of bonds
that the value of the real property that would be subject to the
special tax to pay debt service on the bonds will be at least three
times the principal amount of the sum of the following:
   (1) The principal amount of the bonds to be sold.
   (2) The principal amount of all other bonds outstanding that are
secured by a special tax levied pursuant to this chapter on property
within the community facilities district or a special assessment
levied on property within the community facilities district. The
legislative body shall estimate the principal amount of these other
bonds that are secured by property within the district by assuming
that the maximum allowable tax or assessment applicable to each
parcel of property within the district will be levied until the date
of maximum maturity of the bonds. Any determination made pursuant to
this subdivision shall be based upon the full cash value as shown on
the ad valorem assessment roll or upon an appraisal of the subject
property made in a manner consistent with the policies adopted
pursuant to paragraph (5) of subdivision (a) of Section 53312.7 by a
state certified real estate appraiser, as defined in subdivision (c)
of Section 11340 of the Business and Professions Code. The Treasurer
may recommend definitions, standards, and assumptions to be used for
these appraisals. These definitions, standards, and assumptions are
advisory only, and the definitions, standards, and assumptions to be
applied to appraisals will be those adopted by the local agency
pursuant to paragraph (5) of subdivision (a) of Section 53312.7.
   (b) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines that the
proposed bonds do not present any unusual credit risk due to the
availability of credit enhancements, or because a sufficient portion
of the principal amount of a bond issue has been deposited in a
self-financing and self-liquidating escrow account under conditions
such that it cannot be withdrawn until the value of real property
subject to special taxes has increased sufficiently so that the
requirements of subdivision (a) will be met or for other reasons
specified by the legislative body, the provisions of subdivision (a)
may be disregarded.
   (c) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines by a vote of
not less than four-fifths of all of its members that the proposed
bond issue should proceed for specified public policy reasons, the
provisions of subdivision (a) may be disregarded.
   A finding and determination by the legislative body pursuant to
this subdivision shall be final and conclusive upon all persons in
the absence of actual fraud, and neither the legislative body nor the
district shall have any liability of any kind whatsoever out of, or
in connection with, any finding and determination.




53346.  The clerk of the legislative body shall publish a notice of
the hearing pursuant to Section 6061 in a newspaper of general
circulation circulated within the district. The notice shall contain
all of the following information:
   (a) The text or a summary of the resolution adopted pursuant to
Section 53345 which may refer to documents on file in the office of
the clerk for detail.
   (b) The time and place of the hearing on the proposal to issue
debt.
   (c) A statement that at the hearing the testimony of all
interested persons, including all persons owning property in the
area, for or against the proposed debt issuance, will be heard.




53348.  At the time and place fixed for the hearing on the
resolution declaring the necessity for incurring the bonded
indebtedness or at any time and place to which the hearing is
adjourned, the legislative body shall proceed with the hearing.




53349.  At the hearing any person interested, including persons
owning property within the area, may appear and present any matters
material to the questions set forth in the resolution declaring the
necessity for incurring the bonded indebtedness.




53350.  For purposes of financing of, or contributing to the
financing of, specified public facilities, the legislative body may
by resolution designate a portion or portions of the district as one
or more improvement areas. An area shall be known as "Improvement
Area No. ____" of "Community Facilities District ____." After the
designation of an improvement area, all proceedings for purposes of a
bond election and for the purpose of levying special taxes for
payment of the bonds, or for any other change pursuant to Article 3
(commencing with Section 53330), shall apply only to the improvement
area for those specified facilities.


53351.  After the legislative body has made its determination
pursuant to Section 53350, if it deems it necessary to incur the
bonded indebtedness, it shall by resolution state all of the
following:
   (a) That it deems it necessary to incur the bonded indebtedness.
   (b) The purpose for which the bonded indebtedness will be
incurred.
   (c) Either of the following in accordance with its previous
determination:
   (1) That the whole of the district will pay for the bonded
indebtedness.
   (2) That a portion of the district will pay for the bonded
indebtedness, which portion shall be described in the resolution of
the board made pursuant to Section 53350.
   (d) The amount of debt to be incurred.
   (e) The maximum term the bonds to be issued shall run before
maturity, which term shall not exceed 40 years.
   (f) The maximum annual rate of interest to be paid, payable
annually or semiannually, or in part annually and in part
semiannually.
   (g) That the proposition will be submitted to the voters.
   (h) The date of the special community facilities district election
(which may be consolidated with a general or special district
election including an election to levy a special tax) at which time
the proposition shall be submitted to the voters.
   (i) If the election is not conducted by mail ballot, the hours
between which the polls shall be open.
   (j) If the election is conducted by mail ballot, the hour when the
mailed ballots are required to be received in the office of the
election officer conducting the election, and that if all qualified
electors have voted, the election shall be closed.



53352.  The resolution provided for in Section 53351 shall
constitute the notice of such special bond election and such
resolution shall be published in a newspaper of general circulation
circulating within the area.



53353.5.  (a) Propositions relating to the levy of a special tax,
the incurring of bonded indebtedness, or to establish or change an
appropriations limit, or any combination thereof, under this chapter,
may be combined into one ballot proposition as determined by the
legislative body. The qualified electors for all of these purposes
shall be determined and the election shall be conducted in the same
manner as for a special tax election pursuant to Section 53326.
   (b) The amendments of this section enacted by the Statutes of 1984
and 1991 do not constitute a change in, but are declaratory of and a
clarification of, the existing law.



53354.  If the area designated in the resolution adopted pursuant to
Section 53351 does not include the entire community facilities
district, a separate ballot shall be prepared for the vote upon the
proposition to authorize bonds and to levy a special tax for payment
of the bonds and only the voters entitled thereto shall be given the
ballots.



53355.  A two-thirds vote shall be required for the issuance of
bonds under authority of this chapter.



53356.  If more than two-thirds of the votes cast at the election
are in favor of incurring the indebtedness, the legislative body may,
by resolution, at the time or times it deems proper, provide for the
following:
   (a) The form of the bonds.
   (b) The execution of the bonds.
   (c) The issuance of any part of the bonds.
   (d) The appointment of one or more banks or trust companies within
or without the state having the necessary trust powers as trustee,
fiscal agent, paying agent, or bond registrar.
   (e) The execution of a trust agreement, indenture, or other
instrument securing the bonds.
   (f) The pledge or assignment of any revenues of the community
facilities district to the repayment of the bonds.
   (g) The investment of any bond proceeds and other revenues,
including special tax revenues, by the trustee or fiscal agent in any
securities or obligations described in the resolution, indenture,
trust agreement, or other instrument providing for the issuance of
the bonds. Investment subject to this subdivision shall comply with
Section 53356.03. The resolution may provide for payment to the
United States from any available revenues of a community facilities
district of any excess investment earnings required to be rebated by
federal law.
   (h) The date or dates to be borne by the bonds and the time or
times of maturity of the bonds and the place or places and time or
times that the bonds shall be payable.
   (i) The interest, fixed or variable, to be borne by the bonds.
   (j) The denominations, form, and registration privileges of the
bonds.
   (k) Any other terms and conditions determined to be necessary by
the legislative body.


53356.03.  The proceeds of any bond, note, or other security issued
pursuant to this chapter, or the proceeds of any bond, note, or other
security issued pursuant to any other authority where revenue
collected pursuant to this chapter is pledged or otherwise committed
to pay or repay principal, interest, or both, shall be deposited or
invested only in one or more of the instruments, securities, or
obligations that are eligible legal investments of the local agency.



53356.05.  The bond indenture or other bond documents may provide
that the legislative body agrees to notify one or more parties,
including the underwriter or other first purchaser of the bonds, an
appropriate national repository for bond information approved by the
Securities and Exchange Commission, or the California Debt and
Investment Advisory Commission, if specified events occur that may
affect the market value of outstanding bonds. These events may
include, but are not limited to, the following, for example:
   (a) Withdrawal of funds from any reserve fund for the bonds, such
that the balance in the fund falls below a specified percentage of
the amount required by bond documents.
   (b) Draw upon a letter of credit or other credit enhancement for
the bonds.
   (c) Filing for bankruptcy by a developer or other owner of more
than a specified percentage of the area or property value within the
district.
   (d) Unforeseen discovery of toxic materials or rare and endangered
plant or animal species within areas of the district proposed for
development.



53356.1.  (a) As a cumulative remedy, if debt is outstanding, the
legislative body may, not later than four years after the due date of
the last installment of principal thereof, order that any delinquent
special taxes levied in whole or in part for payment of the debt,
together with any penalties, interest, and costs, be collected by an
action brought in the superior court to foreclose the lien of special
tax.
   (b) The legislative body may, by resolution, adopted prior to the
issuance of debt under this chapter, covenant for the benefit of
debtholders to commence and diligently pursue any foreclosure action
regarding delinquent installments of any amount levied as a special
tax, in whole or in part, for the payment of interest or principal of
any debt that is incurred, and, at any time may assign the causes of
action arising from the foreclosure to a trustee or joint powers
authority to do so on behalf of the debtholders. The resolution may
specify a deadline for commencement of the foreclosure action and any
other terms and conditions the legislative body determines
reasonable regarding the foreclosure action.
   (c) Except as provided in Section 53356.6, all special taxes,
interest, penalties, costs, fees, and other charges that are
delinquent at the time of the ordering of a foreclosure action shall
be collected in the action. In the event that a lot or parcel of
property has not been sold pursuant to judgment in the foreclosure
action at the time that subsequent special taxes become delinquent,
the court may include the subsequent special taxes, interest,
penalties, costs, fees, and other charges in the judgment or modified
judgment.
   (d) For purposes of financing delinquent special taxes pursuant to
Section 26220 of the Government Code, the legislative body may act
as if it were a board of supervisors.
   (e) Notwithstanding any other provision of this chapter, no
trustee or joint powers authority shall be obligated to accept the
tender of bonds in satisfaction of any obligation arising from a
delinquent special tax, although either may do so if authorized to do
so by the legislative body.
   (f) An action to determine the validity of any bonds issued, any
joint powers agreement entered into, and any related agreements
entered into, by a joint powers agency acting pursuant to this
section may be brought by the joint powers agency pursuant to Chapter
9 (commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. Any appeal from a judgment in the action shall be
commenced within 30 days after entry of judgment.



53356.1.5.  (a) This section applies if delinquent special taxes,
together with any penalties, interest, and costs, are collected
through the sale of the property by the tax collector pursuant to
Chapter 7 (commencing with Section 3691) of Part 6 of Division 1 of
the Revenue and Taxation Code.
   (b) If the property is sold for at least the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, the sale of the property shall extinguish
the delinquent special taxes, interest, penalties, and costs included
in the sale price.
   (c) If the property is sold for less than the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, all of the following apply:
   (1) The portion of the sales price paid by the tax collector to
the local agency on account of the delinquent special taxes shall be
credited by the local agency first to the delinquent interest and
redemption penalties, and then to the delinquent principal.
   (2) The remainder of the delinquent special taxes and redemption
penalties, if any, shall remain due and owing.
   (3) Redemption penalties shall continue to accrue on the remaining
unpaid delinquent special taxes.
   (4) The remaining unpaid amount, with penalties, may be added as
postjudgment delinquencies to any existing unsatisfied foreclosure
judgment against the property, or may be collected in a new
foreclosure action filed pursuant to this chapter.



53356.2.  (a) When any foreclosure actions are ordered by the local
agency or legislative body, or when subsequent installments and
interest that are also to be made the subject of a foreclosure action
thereafter become delinquent, and the foreclosure action is not
commenced and a notice of pendency of action is not concurrently
recorded, prior to the actual removal of the delinquent installment
from the tax roll, the local agency or legislative body responsible
for the foreclosure action on the delinquent installment shall do one
of the following:
   (1) Prior to the actual removal of the delinquent installment from
the tax roll, the local agency or legislative body shall record or
cause to have recorded in the county recorder's office in the county
in which the real property is located, a Notice of Intent to Remove
Delinquent Special Tax Installment from the Tax Roll, which contains
the information set forth in subdivision (b). If action is taken
under this paragraph, all of the following apply:
   (A) Upon presentation of written proof of the recordation and a
request for removal by the local agency or legislative body, the
county auditor shall remove the delinquent installments from the tax
roll. "Proof of recordation" includes, but is not limited to, a
certified copy of the notice set forth in subdivision (b), or a copy
of the recorded notice containing the county recorder's assigned
document number, or a copy of the recorded notice containing a copy
stamp from the office of the county recorder.
   (B) From the date of the recordation, the county tax collector
shall be credited upon the current tax roll with the amount charged
against him or her on account of the delinquent special tax
installment. If any person pays the delinquent installment referred
to in the Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll to the county tax collector prior to or
subsequent to the actual removal of that delinquent installment from
the tax roll, the county auditor shall forward that payment to the
local agency or legislative body responsible for the foreclosure
action.
   (C) From the date of recordation pursuant to this section, the
special tax installment, and interest thereon, and penalties, costs,
fees, and other charges accrued under applicable statutes, that are
to be collected in a foreclosure action, shall no longer be
collectible by the county tax collector.
   (D) The county tax collector, in addition to the costs recovered
in foreclosure, may charge the actual costs incurred in removing
these sums from the tax roll or the performance of any other related
duties as set forth in this section.
   (E) Installments, interest, penalties, costs, fees, and other
charges that do not become the subject of a foreclosure action shall
remain collectible by the county tax collector as otherwise provided
by applicable law.
   (2) As an alternative to the notice requirement set forth in
paragraph (1), the Counties of San Bernardino and Riverside may,
simultaneously with the removal of the delinquent special tax
installment from the secured tax roll, provide notification on the
secured tax roll that the installment has been removed from the roll
for each parcel for which the delinquent special tax installment was
removed. The notice shall be displayed in a manner which conveys that
the removal has occurred, and shall include the name and telephone
number of the person or entity to be contacted to receive further
information.
   (b) The Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll shall be completed and recorded by or
caused to be recorded by the local agency or legislative body
responsible for the foreclosure action, and shall contain all of the
following:
   (1) The name of the local agency or legislative body, city, or
other assessment district responsible for the foreclosure action.
   (2) The legal description or assessor's parcel number of the
property affected by the notice.
   (3) The specific tax year and installment intended to be removed
from the tax roll.
   (4) The title, address, and telephone number of the employee, city
official, or other authorized official who should be contacted
regarding the delinquent assessment installment amount.
   (5) The name of the owner shown on the last equalized assessment
roll.
   (c) Any local agency or legislative body that removed or caused to
be removed a delinquent special tax installment from the ad valorem
tax roll prior to January 1, 1997, shall record, by July 1, 1997, a
Notice of Intent to Remove Delinquent Special Tax Installment from
the Tax Roll or shall request the tax collector to retain the notice
of delinquent special tax installment on the tax roll as set forth in
paragraph (2) of subdivision (a). If the foreclosure action has been
filed and a notice of pendency of action has been recorded in the
county recorder's office prior to July 1, 1997, this requirement does
not apply.
   (d) All costs associated with the county tax collector's and local
agency's or legislative body's responsibilities as set forth in this
section shall be recoverable by the local agency or legislative body
through the foreclosure action.
   (e) The recording of a notice of pendency of action in the county
recorder's office in the county in which the real property is
located, concurrent with the commencement of a foreclosure action
ordered by the local agency or legislative body and commenced prior
to the actual removal from the tax roll of the delinquent installment
which is the subject of the foreclosure action, constitutes
compliance with the notice requirements of this section.



53356.3.  At any time after the tax collector has been relieved of
his or her duty to collect sums under Section 53356.2 and before
judgment in a foreclosure action, the local agency or trustee shall
dismiss the action upon payment of all of the following:
   (a) The amount of any delinquent special taxes together with any
penalties, interest, and costs accrued thereon to date of complete
payment hereunder.
   (b) Costs of suit, including, but not limited to, litigation
guarantees provided by title companies with respect to all claims of
ownership or interest in the subject property.
   (c) Attorneys' fees authorized by the local agency.
   (d) The tax collector's costs authorized by subdivision (d) of
Section 53356.2.



53356.4.  The foreclosure action shall be brought in the name of the
local agency or trustee on behalf of the bondholders pursuant to
Section 53356.1, and may be brought within the time specified in
Section 53356.1. The complaint may be brief and need only include the
following allegations:
   (a) That on a stated date, a certain sum of special taxes, levied
against the subject property (describing it) pursuant to this
chapter, became delinquent.
   (b) On that date, bonds issued pursuant to this chapter, payable
in whole or in part by the subject special taxes, were outstanding.
   (c) That the legislative body or trustee has ordered the
foreclosure.



53356.5.  (a) Any judgment shall decree the amount of the continuing
lien against each parcel to be foreclosed, and shall order the
parcel to be sold on execution as in other cases of the sale of real
property by process of the court except:
   (1) Notwithstanding Section 701.545 of the Code of Civil
Procedure, notice of sale of any lot or parcel included in the
judgment may be given pursuant to Section 701.540 of the Code of
Civil Procedure any time after the expiration of 20 days after the
date notice of levy on the interest in real property was served on
the judgment debtor or debtors, provided that the lot or parcel to be
sold is not a dwelling for not more than four families and provided
that all parties whose liens are extinguished by the foreclosure
judgment were either defendants in the foreclosure action or, for
those parties who acquired an interest in a lien on the parcel after
the recording of notice of the pending foreclosure action, received
constructive notice of the action.
   (2) Whenever notice of sale may be given after the expiration of
20 days after the date notice of levy was served as provided in
paragraph (1), the 30-day time period contained in subdivision (h) of
Section 701.540 of the Code of Civil Procedure shall be reduced to
10 days.
   (3) Upon proof that the lot or parcel to be sold is not a dwelling
for not more than four families, and upon determining that all
parties whose liens are extinguished by the foreclosure judgment were
either defendants in the foreclosure action or, for those parties
who acquired an interest in a lien on the parcel after the recording
of notice of the pending foreclosure action, received constructive
notice of the action, pursuant to Section 716.020 of the Code of
Civil Procedure, the court shall order that paragraphs (1) and (2)
apply to any judgment previously entered.
   (4) The minimum bid amount provided in Section 53356.6 shall apply
instead of subdivision (a) of Section 701.620 of the Code of Civil
Procedure.
   (5) The local agency may bid at the price provided in Section
53356.6 by giving the levying officer a written receipt crediting all
or part of the amount required to satisfy the judgment. If the local
agency becomes the purchaser pursuant to bid, the local agency shall
pay the amount of its credit bid into the redemption fund within 24
months of the date of the foreclosure sale.
   (6) Notwithstanding subdivision (c) of Section 701.620 of the Code
of Civil Procedure, if the minimum price required to be paid for a
lot or parcel pursuant to Section 53356.6 is not obtained at a
foreclosure sale, upon written request of the local agency, the
levying officer shall retain the writ of sale and, provided that the
writ of sale has not been returned to the court pursuant to paragraph
(1) of subdivision (a) of Section 699.560 of the Code of Civil
Procedure, give notice of sale pursuant to Section 701.540 of the
Code of Civil Procedure without relevying on the property.
   (7) As provided elsewhere in this chapter.
   (b) The judgment amount shall include reasonable attorneys' fees
to be fixed by the court, together with interest, penalties, and
other authorized charges and costs (all calculated up to date of
judgment).
   (c) The foreclosure action shall be governed and regulated by the
provisions of this chapter, and also where not in conflict with this
chapter, by other provisions of law generally applicable to
foreclosure actions.



53356.6.  Property sold hereunder may not be sold for less than the
amount of the judgment plus postjudgment interest and authorized
costs without the consent of the owners of 75 percent by value of the
outstanding bonds.


53356.7.  No special tax installment, interest or penalties thereon,
or deed shall be held invalid for any error in computation if the
error is found to be comparatively negligible, or is found to be in
favor of the owner of the real property affected thereby.



53356.8.  Provided the legislative body permits bonds or debt to be
tendered for special taxes and the penalties and interest thereon
pursuant to Section 53344.1, if the highest bid for a lot or parcel
sold pursuant to a judgment of foreclosure and order of sale exceeds
five thousand dollars ($5,000) and the highest bidder elects to treat
the sale as a credit transaction pursuant to subdivision (c) of
Section 701.590 of the Code of Civil Procedure, the balance due as
provided in that section may be paid in full or in part by tender of
bonds or debt, provided, however, that bonds or debt may not be
tendered for costs of foreclosure, including attorney's fees, and
administrative charges incurred by the local agency with respect to
removing the special taxes from the rolls of the treasurer or tax
collector, or other administrative charges.
   (a) Tender of bonds or debt shall be made to the local agency
within seven days of the date of the sale. The local agency shall be
charged with authenticating the tender and shall, within 10 days of
the date of the sale, submit a written receipt to the levying officer
who conducted the sale for the amount of the bond or debt tender
accepted by it.
   (b) Tender of cash or certified check or cashier's check shall be
made to the levying officer within 10 days of the date of the sale.
   (c) The levying officer shall total the cash, certified checks and
cashier's checks, and any agency written receipts for bonds or debt
to determine if the amount of the bid, plus accruing costs and
interests, has been paid. In no event shall the tendering party be
entitled to receive cash or other compensation in return for all or
any part of the value of a tendered bond or bonds, except for
recognition of their value in satisfying the amount bid.
   (d) The tendering party shall comply with the provisions of
Section 53344.1, as applicable as if they were fully set out in this
section.



53356.9.  (a) Notwithstanding any other provision of this chapter or
any other provision of law applicable to foreclosure action, the
judgment of foreclosure and sale of a lot or parcel pursuant to this
chapter shall not terminate or otherwise affect the rights of the
holder of an easement in that lot or parcel.
   (b) No provision of this section shall be interpreted as limiting
any rights otherwise agreed to under existing contract.



53357.  The bonds shall be signed by the chairperson of the
legislative body and countersigned by the clerk of the legislative
body or his or her deputy. All signatures on the bonds may be
printed, lithographed, or engraved. If any officer whose signature
appears on the bonds ceases to be that officer before the delivery of
the bonds, his or her signature is as effective as if he or she had
remained in office. All bonds shall be payable at the office of the
treasurer of the local agency or at the office of any agent
designated by the local agency.


53358.  When the legislative body provides for the fixing and
levying of special taxes and charges for the community facilities
district it shall also provide for the fixing and levying of that
amount of special taxes and charges within the community facilities
district which is required for the payment of the principal of and
interest on any outstanding bonded debt of the community facilities
district, including any necessary replenishment or expenditure of
bond reserve funds or accumulation of funds for future bond payments,
including any amount required by federal law to be rebated to the
United States on that bonded debt. The special tax or charge shall be
levied and collected by the same officers and at the same time and
in the same manner that all other special taxes and charges are
levied and collected for the community facilities district or in any
other manner specified by the legislative body. The special taxes and
charges shall not exceed the authority granted by Article 2
(commencing with Section 53318) and Article 3 (commencing with
Section 53330). All of the collections for payment of principal and
interest on bonds shall be paid into the community facilities
district bond fund and reserve or other fund for the particular
community facilities district and shall be used solely for the
payment of the principal of and interest on the outstanding bonds of
the community facilities district.



53359.  An action to determine the validity of bonds issued pursuant
to this chapter or the validity of any special taxes levied pursuant
to this chapter may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure but shall, notwithstanding the time limits specified in
Section 860 of the Code of Civil Procedure, be commenced within 30
days after the voters approve the issuance of the bonds or the
special tax if the action is brought by an interested person pursuant
to Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within 30
days after entry of judgment.



53359.5.  (a) The legislative body shall, no later than 30 days
prior to the sale of any bonds pursuant to this article, give written
notice of the proposed sale to the California Debt and Investment
Advisory Commission by mail, postage prepaid, or by any other method
approved by the California Debt and Investment Advisory Commission,
as required by Chapter 11.5 (commencing with Section 8855) of
Division 1 of Title 2.
   (b) On and after January 1, 1993, each year after the sale of any
bonds, including refunding bonds, pursuant to this article, and until
the final maturity of the bonds, the legislative body shall, not
later than October 30 of each year, supply the following information
to the California Debt and Investment Advisory Commission by mail,
postage prepaid, or by any other method approved by the California
Debt and Investment Advisory Commission:
   (1) Issuer name.
   (2) Community facilities district number or name.
   (3) Name, title, and series of the bond issue.
   (4) Credit rating and name of the rating agency.
   (5) Date of the bond issue and the original principal amount.
   (6) Reserve fund minimum balance required.
   (7) The principal amount of bonds outstanding.
   (8) The balance in the bond reserve fund.
   (9) The balance in the capitalized interest fund, if any.
   (10) The number of parcels that are delinquent with respect to
their special tax payments, the amount that each parcel is
delinquent, the total amount of special taxes due on the delinquent
parcels, the length of time that each has been delinquent, when
foreclosure was commenced for each delinquent parcel, the total
number of foreclosure parcels for each date specified, and the total
amount of tax due on the foreclosure parcels for each date specified.
   (11) The balance in any construction funds.
   (12) The assessed value of all parcels subject to special tax to
repay the bonds as shown on the most recent equalized roll, the date
of assessed value reported, and the source of the information.
   (13) The total amount of special taxes due, the total amount of
unpaid special taxes, and whether or not the special taxes are paid
under the county's Teeter Plan (Chapter 6.6 (commencing with Section
54773)).
   (14) The reason and the date, if applicable, that the issue was
retired.
   (15) Contact information for the party providing the information.
   (c) In addition, with respect to any bonds sold pursuant to this
article, regardless when sold, and until the final maturity of the
bonds, the legislative body shall notify the California Debt and
Investment Advisory Commission by mail, postage prepaid, or by any
other method approved by the California Debt and Investment Advisory
Commission, within 10 days if any of the following events occur:
   (1) The local agency or its trustee fails to pay principal and
interest due on any scheduled payment date.
   (2) Funds are withdrawn from a reserve fund to pay principal and
interest on the bonds that reduce the reserve fund to less than the
reserve requirement.
   (d) Neither the legislative body nor the California Debt and
Investment Advisory Commission shall be liable for any inadvertent
error in reporting the information required by this section.



53359.7.  Current information on the items listed in Section 53359.5
is a matter of public record, within the meaning of the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1, even if the information is physically held by
an agent or trustee of the public agency. Neither the legislative
body, nor any of its officers, agents, or trustees shall be liable in
any way for making that financial information available to anyone
requesting it or for otherwise making it available to the public.



53360.  The community facilities district may sell the bonds so
issued at the times or in the manner the legislative body deems to be
to the public interest. However, except as otherwise provided in
Section 53360.4, all bonds shall be sold on sealed proposals or
through generally accepted electronic means to the highest bidder,
after advertising for bids by publication of notice of sale pursuant
to Section 53692. If no bids are received or if the legislative body
determines that the bids received are not satisfactory as to price or
responsibility of the bidders, the legislative body may reject all
bids received, if any, and either readvertise or sell the bonds at
private sale.


53360.4.  Notwithstanding Section 53360, the legislative body may
sell bonds at private sale, without advertising for bids, if the
legislative body determines that the action would result in a lower
overall cost.


53360.7.  The legislative body may provide that bonds shall bear a
variable interest rate, and for the manner and intervals in which the
rate shall vary. The variable rate shall not exceed the maximum rate
permitted by Section 53531 or any other applicable provision of law
limiting the maximum interest rate on bonds.


53361.  Any bonds issued by a district organized under the
provisions of this chapter are hereby given the same force, value and
use as bonds issued by any municipality and shall be exempt from all
taxation within the state.


53361.1.  All bonds issued by any district payable from taxes or
charges are legal investments for all trust funds, for the trust
funds of all insurance companies, the state school funds, and any
funds which may be invested in bonds of cities, counties, cities and
counties, school districts, or municipalities in the state.




53362.  The legislative body may, by resolution, issue new bonds to
refund any or all of the district bonds outstanding or improvement
area bonds outstanding that have been issued pursuant to this
article.


53362.5.  Refunding bonds shall not be issued if the total interest
cost to maturity on the refunding bonds plus the principal amount of
the refunding bonds exceeds the total interest cost to maturity on
the bonds to be refunded plus the principal amount of the bonds to be
refunded. Subject to these limitations, the principal amount of the
refunding bonds may be more than, less than, or the same as the
principal amount of the bonds to be refunded.



53362.7.  The total authorized amount of the bonded indebtedness of
a district or an improvement area therein, as approved by the
qualified voter thereof, shall not be reduced by the principal amount
of any refunding bonds issued to refund any or all outstanding bonds
of the district or improvement area. This section does not
constitute a change in, but is declaratory of, the existing law.



53363.  Except as otherwise provided in this article, the
legislative body may issue refunding bonds without repeating any of
the procedures required for the approval of the original bond issue,
if the legislative body determines that it would be prudent in the
management of its fiscal affairs to issue the refunding bonds.




53363.2.  If the legislative body determines to issue refunding
bonds pursuant to this article it shall adopt a resolution providing
for their issuance. The resolution shall:
   (a) Describe the bonds being refunded and state the date on which
it is anticipated that the exchange or purchase necessary to effect
the refunding will occur.
   (b) Fix the date of the refunding bonds.
   (c) Designate the denomination or denominations of the refunding
bonds.
   (d) Fix the minimum rate or rates of interest to be paid on the
refunding bonds.
   (e) Fix the maturity dates of the refunding bonds, which shall not
exceed the latest maturity date of the bonds being refunded.
   (f) Designate the place or places of payment of principal and
interest on the refunding bonds and on the bonds to be refunded.
   (g) Describe the form of the refunding bonds.
   (h) State the designated costs of issuing the refunded bonds, as
defined by Section 53363.8.


53363.5.  Any refunding bonds issued pursuant to this article may be
exchanged for the bonds to be refunded on such basis as the
legislative body determines is for the benefit of the district, but
shall be issued in compliance with Section 53362.5. As an alternative
to exchanging the refunding bonds for the bonds to be refunded, the
legislative body may sell the refunding bonds at public or private
sale. The proceeds of any sale of refunding bonds for cash shall be
placed in the treasury of the local agency to the credit of a fund to
be established for the purpose of refunding the bonds to be
refunded, which fund shall be designated the "refunding fund," and
the proceeds of the sale shall be applied only as permitted by this
article. The funds shall be secured and may be invested in accordance
with any other laws applicable to the funds of the local agency.



53363.7.  The designated costs of issuing the refunding bonds, as
defined by Section 53363.8, may be paid by the purchaser of the
refunding bonds or may be paid from any other legally available
source, including any available revenues of the legislative body, the
proceeds of sale of the refunding bonds, the interest or other gain
derived from the investment of any of the proceeds of sale of the
refunding bonds, or any combination thereof, as determined by the
legislative body. However, any amounts paid by the local agency other
than from the proceeds of sale of the refunding bonds or from
interest or other gains derived from the investment of the proceeds
of sale shall be added to the total interest cost to maturity on the
refunding bonds in determining whether the issuance of the refunding
bonds complies with Section 53362.5.



53363.8.  For purposes of this article, the term "designated costs
of issuing the refunding bonds" means any of the following costs and
expenses designated by the legislative body in the resolution
providing for the issuance of the refunding bonds:
   (a) All expenses incident to the calling, retiring, or paying of
the bonds to be refunded and incident to the issuance of refunding
bonds, including the charges of any agent in connection with the
issuance of the refunding bonds or in connection with the redemption
or retirement of the bonds to be refunded.
   (b) Either of the following:
   (1) The interest upon the refunding bonds from the date of sale of
the refunding bonds to the date of payment of the bonds to be
refunded out of the proceeds of the sale of the refunding bonds or to
the date upon which the bonds to be refunded will be paid pursuant
to call or agreement with the holders of the bonds.
   (2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to be
refunded or to the date upon which the bonds to be refunded will be
paid pursuant to call or agreement with the holders of the bonds.
   (c) Any premium necessary in the calling or retiring of the bonds
to be refunded.


53363.9.  The proceeds and investments in the "refunding fund" shall
be in an amount sufficient to meet either the requirements of
paragraph (a) or paragraph (b) at the time of issuance of the
refunding bonds, as certified by a certified public accountant
licensed to practice in this state.
   (a) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunded bonds as they become due or at
designated dates prior to maturity and the designated costs of
issuance of the refunding bonds.
   (b) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunding bonds prior to the maturity of the
bonds to be refunded or prior to a designated date or dates before
the maturity of the bonds to be refunded, the principal and any
redemption premiums due on the refunded bonds at maturity or upon
that designated date or dates, and the designated costs of issuance
of the refunding bonds.



53364.  Following the issuance of any refunding bonds pursuant to
this article, the treasurer of the local agency shall provide for the
payment of principal and interest on the refunding bonds in the same
manner as for the bonds being refunded. Payments on the refunding
bonds may be made from the "refunding fund" or from the redemption
fund established for the bonds being refunded. However, the bonds
being refunded shall have a priority claim on funds in the redemption
fund.



53364.2.  (a) If further facilities or services are authorized to be
financed by the district, savings achieved through the issuance of
refunding bonds may be used by the legislative body for those
purposes.
   (b) If no further facilities or services are authorized to be
financed by the district, any savings achieved through the issuance
of refunding bonds shall be used by the legislative body to reduce
the special taxes levied to retire outstanding bonds.
   (c) Savings achieved through the issuance of refunding bonds may
be used pursuant to both subdivisions (a) and (b) in proportions
determined by the legislative body.
   (d) For purposes of this section, the terms "savings achieved
through the issuance of refunding bonds" means the difference between
the principal and interest to maturity of the refunded bonds and the
principal and interest to maturity of the refunding bonds.
   (e) If savings are to be used for authorized facilities, bonds may
be issued that are secured by that savings.



53364.5.  Any bonds issued by the district may be made callable by
resolution of the legislative body adopted at or prior to the time of
issuing the bonds. When bonds are made callable a statement to that
effect shall be set forth on the face of the bonds. Callable bonds
may be redeemed on any date prior to their fixed maturity in the
amounts, manner, and prices prescribed by the legislative body.




53365.  Notice designating the bonds called for redemption shall be
mailed to the underwriter or other first purchaser and to the
registered owners of the bonds to be called by first-class mail. The
notice shall be mailed not less than 30 nor more than 90 days prior
to the date fixed for redemption.



53365.5.  If on the date fixed for redemption, the area has provided
funds available for payment of the principal and interest of the
bonds called, interest on the bonds shall cease.



53365.7.  (a) The legislative body may, by resolution and without
the necessity of calling and holding an election, borrow money in
anticipation of the sale of bonds which have been authorized pursuant
to this article, but which have not been sold and delivered, issue
negotiable bond anticipation notes therefor, and renew the notes from
time to time. The maximum maturity of any such notes, including the
renewals thereof, shall not exceed five years from the date of
delivery of the original notes.
   (b) The principal and interest on the notes may be paid from any
money available for their payment. Any portion of the principal or
interest which is due and payable shall be paid from the proceeds of
the next sale of bonds in anticipation of which the notes were
issued.
   (c) The proceeds of notes issued pursuant to this section may be
used for any purpose for which the bonds in anticipation of which the
notes were issued may be used.
   (d) The notes shall not be issued in any amount in excess of the
aggregate amount of bonds which the legislative body has been
authorized to issue, less the amount of any bonds of such authorized
issue which have been previously sold and less the amount of other
bond anticipation notes issued previously and outstanding at that
time.
   (e) The legislative body may, in its resolution authorizing the
issuance of notes, provide that the note shall be subject to call and
redemption prior to maturity, at the option of the district, at such
price or prices as may be fixed in the resolution, but not to exceed
a premium of 6 percent of the par value of the note so subject to
redemption. The resolution shall fix the method of giving notice of
redemption to the holders of notes to be redeemed and the price or
prices at which the note shall be subject to redemption. Any notes
that are subject to call and redemption prior to maturity shall
contain a recital to that effect on their face and no note shall be
subject to call or redemption prior to its fixed maturity date unless
it contains that recital.
   (f) The notes shall be issued and sold in the same manner as the
bonds.
   (g) The notes and the resolution or resolutions authorizing the
same may contain any provisions, conditions, or limitations which a
resolution of the legislative body authorizing the issuance of bonds
may contain.
   (h) The legislative body shall, in its resolution authorizing the
issuance of notes, provide a remedy if the anticipated bonds cannot
be sold at the time or in the amount specified in the resolution, or
if any default occurs with respect to the notes. Any remedy which is
so provided shall limit the obligations of property owners within the
community facilities district to the special tax authorized and
levied pursuant to this chapter, except that the legislative body may
enter into an agreement with any of the property owners within the
district pledging some or all of the real property of those property
owners who are a party to the agreement as additional security for
the notes. The legislative body may authorize the levy of a
supplemental special tax in an amount sufficient to secure a note
issued pursuant to this section, if that special tax is fully
described as to the rate, method of apportionment, and conditions
under which it may be levied in the resolution of intention prepared
pursuant to Section 53321. This special tax shall be subject to the
procedures and voting requirements for any special tax levied under
the authority of this chapter.

State Codes and Statutes

Statutes > California > Gov > 53345-53365.7

GOVERNMENT CODE
SECTION 53345-53365.7



53345.  Whenever the legislative body deems it necessary for the
community facilities district to incur a bonded indebtedness, it
shall, by resolution, set forth all of the following:
   (a) A declaration of the necessity for the indebtedness.
   (b) The purpose for which the proposed debt is to be incurred.
   (c) The amount of the proposed debt. The legislative body may
provide for a reduction in the amount of proposed debt in compliance
with the provisions of Section 53313.9.
   (d) The time and place for a hearing by the legislative body on
the proposed debt authorization.



53345.3.  The amount of the proposed bonded indebtedness may include
all costs and estimated costs incidental to, or connected with, the
accomplishment of the purpose for which the proposed debt is to be
incurred, including, but not limited to, the estimated costs of
construction or acquisition of buildings, or both; acquisition of
land, rights-of-way, water, sewer, or other capacity or connection
fees; lease payments for school facilities, satisfaction of
contractual obligations relating to expenses or the advancement of
funds for expenses existing at the time the bonds are issued pursuant
to this chapter; architectural, engineering, inspection, legal,
fiscal, and financial consultant fees; bond and other reserve funds;
discount fees; interest on any bonds of the district estimated to be
due and payable within two years of issuance of the bonds; election
costs; and all costs of issuance of the bonds, including, but not
limited to, fees for bond counsel, costs of obtaining credit ratings,
bond insurance premiums, fees for letters of credit, and other
credit enhancement costs, and printing costs. Bonds may not be issued
pursuant to this chapter to fund any of the services specified in
Section 53313; however, bonds may be issued to fund capital
facilities to be used in providing these services.



53345.8.  (a) The legislative body may sell bonds pursuant to this
chapter only if it determines prior to the award of sale of bonds
that the value of the real property that would be subject to the
special tax to pay debt service on the bonds will be at least three
times the principal amount of the sum of the following:
   (1) The principal amount of the bonds to be sold.
   (2) The principal amount of all other bonds outstanding that are
secured by a special tax levied pursuant to this chapter on property
within the community facilities district or a special assessment
levied on property within the community facilities district. The
legislative body shall estimate the principal amount of these other
bonds that are secured by property within the district by assuming
that the maximum allowable tax or assessment applicable to each
parcel of property within the district will be levied until the date
of maximum maturity of the bonds. Any determination made pursuant to
this subdivision shall be based upon the full cash value as shown on
the ad valorem assessment roll or upon an appraisal of the subject
property made in a manner consistent with the policies adopted
pursuant to paragraph (5) of subdivision (a) of Section 53312.7 by a
state certified real estate appraiser, as defined in subdivision (c)
of Section 11340 of the Business and Professions Code. The Treasurer
may recommend definitions, standards, and assumptions to be used for
these appraisals. These definitions, standards, and assumptions are
advisory only, and the definitions, standards, and assumptions to be
applied to appraisals will be those adopted by the local agency
pursuant to paragraph (5) of subdivision (a) of Section 53312.7.
   (b) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines that the
proposed bonds do not present any unusual credit risk due to the
availability of credit enhancements, or because a sufficient portion
of the principal amount of a bond issue has been deposited in a
self-financing and self-liquidating escrow account under conditions
such that it cannot be withdrawn until the value of real property
subject to special taxes has increased sufficiently so that the
requirements of subdivision (a) will be met or for other reasons
specified by the legislative body, the provisions of subdivision (a)
may be disregarded.
   (c) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines by a vote of
not less than four-fifths of all of its members that the proposed
bond issue should proceed for specified public policy reasons, the
provisions of subdivision (a) may be disregarded.
   A finding and determination by the legislative body pursuant to
this subdivision shall be final and conclusive upon all persons in
the absence of actual fraud, and neither the legislative body nor the
district shall have any liability of any kind whatsoever out of, or
in connection with, any finding and determination.




53346.  The clerk of the legislative body shall publish a notice of
the hearing pursuant to Section 6061 in a newspaper of general
circulation circulated within the district. The notice shall contain
all of the following information:
   (a) The text or a summary of the resolution adopted pursuant to
Section 53345 which may refer to documents on file in the office of
the clerk for detail.
   (b) The time and place of the hearing on the proposal to issue
debt.
   (c) A statement that at the hearing the testimony of all
interested persons, including all persons owning property in the
area, for or against the proposed debt issuance, will be heard.




53348.  At the time and place fixed for the hearing on the
resolution declaring the necessity for incurring the bonded
indebtedness or at any time and place to which the hearing is
adjourned, the legislative body shall proceed with the hearing.




53349.  At the hearing any person interested, including persons
owning property within the area, may appear and present any matters
material to the questions set forth in the resolution declaring the
necessity for incurring the bonded indebtedness.




53350.  For purposes of financing of, or contributing to the
financing of, specified public facilities, the legislative body may
by resolution designate a portion or portions of the district as one
or more improvement areas. An area shall be known as "Improvement
Area No. ____" of "Community Facilities District ____." After the
designation of an improvement area, all proceedings for purposes of a
bond election and for the purpose of levying special taxes for
payment of the bonds, or for any other change pursuant to Article 3
(commencing with Section 53330), shall apply only to the improvement
area for those specified facilities.


53351.  After the legislative body has made its determination
pursuant to Section 53350, if it deems it necessary to incur the
bonded indebtedness, it shall by resolution state all of the
following:
   (a) That it deems it necessary to incur the bonded indebtedness.
   (b) The purpose for which the bonded indebtedness will be
incurred.
   (c) Either of the following in accordance with its previous
determination:
   (1) That the whole of the district will pay for the bonded
indebtedness.
   (2) That a portion of the district will pay for the bonded
indebtedness, which portion shall be described in the resolution of
the board made pursuant to Section 53350.
   (d) The amount of debt to be incurred.
   (e) The maximum term the bonds to be issued shall run before
maturity, which term shall not exceed 40 years.
   (f) The maximum annual rate of interest to be paid, payable
annually or semiannually, or in part annually and in part
semiannually.
   (g) That the proposition will be submitted to the voters.
   (h) The date of the special community facilities district election
(which may be consolidated with a general or special district
election including an election to levy a special tax) at which time
the proposition shall be submitted to the voters.
   (i) If the election is not conducted by mail ballot, the hours
between which the polls shall be open.
   (j) If the election is conducted by mail ballot, the hour when the
mailed ballots are required to be received in the office of the
election officer conducting the election, and that if all qualified
electors have voted, the election shall be closed.



53352.  The resolution provided for in Section 53351 shall
constitute the notice of such special bond election and such
resolution shall be published in a newspaper of general circulation
circulating within the area.



53353.5.  (a) Propositions relating to the levy of a special tax,
the incurring of bonded indebtedness, or to establish or change an
appropriations limit, or any combination thereof, under this chapter,
may be combined into one ballot proposition as determined by the
legislative body. The qualified electors for all of these purposes
shall be determined and the election shall be conducted in the same
manner as for a special tax election pursuant to Section 53326.
   (b) The amendments of this section enacted by the Statutes of 1984
and 1991 do not constitute a change in, but are declaratory of and a
clarification of, the existing law.



53354.  If the area designated in the resolution adopted pursuant to
Section 53351 does not include the entire community facilities
district, a separate ballot shall be prepared for the vote upon the
proposition to authorize bonds and to levy a special tax for payment
of the bonds and only the voters entitled thereto shall be given the
ballots.



53355.  A two-thirds vote shall be required for the issuance of
bonds under authority of this chapter.



53356.  If more than two-thirds of the votes cast at the election
are in favor of incurring the indebtedness, the legislative body may,
by resolution, at the time or times it deems proper, provide for the
following:
   (a) The form of the bonds.
   (b) The execution of the bonds.
   (c) The issuance of any part of the bonds.
   (d) The appointment of one or more banks or trust companies within
or without the state having the necessary trust powers as trustee,
fiscal agent, paying agent, or bond registrar.
   (e) The execution of a trust agreement, indenture, or other
instrument securing the bonds.
   (f) The pledge or assignment of any revenues of the community
facilities district to the repayment of the bonds.
   (g) The investment of any bond proceeds and other revenues,
including special tax revenues, by the trustee or fiscal agent in any
securities or obligations described in the resolution, indenture,
trust agreement, or other instrument providing for the issuance of
the bonds. Investment subject to this subdivision shall comply with
Section 53356.03. The resolution may provide for payment to the
United States from any available revenues of a community facilities
district of any excess investment earnings required to be rebated by
federal law.
   (h) The date or dates to be borne by the bonds and the time or
times of maturity of the bonds and the place or places and time or
times that the bonds shall be payable.
   (i) The interest, fixed or variable, to be borne by the bonds.
   (j) The denominations, form, and registration privileges of the
bonds.
   (k) Any other terms and conditions determined to be necessary by
the legislative body.


53356.03.  The proceeds of any bond, note, or other security issued
pursuant to this chapter, or the proceeds of any bond, note, or other
security issued pursuant to any other authority where revenue
collected pursuant to this chapter is pledged or otherwise committed
to pay or repay principal, interest, or both, shall be deposited or
invested only in one or more of the instruments, securities, or
obligations that are eligible legal investments of the local agency.



53356.05.  The bond indenture or other bond documents may provide
that the legislative body agrees to notify one or more parties,
including the underwriter or other first purchaser of the bonds, an
appropriate national repository for bond information approved by the
Securities and Exchange Commission, or the California Debt and
Investment Advisory Commission, if specified events occur that may
affect the market value of outstanding bonds. These events may
include, but are not limited to, the following, for example:
   (a) Withdrawal of funds from any reserve fund for the bonds, such
that the balance in the fund falls below a specified percentage of
the amount required by bond documents.
   (b) Draw upon a letter of credit or other credit enhancement for
the bonds.
   (c) Filing for bankruptcy by a developer or other owner of more
than a specified percentage of the area or property value within the
district.
   (d) Unforeseen discovery of toxic materials or rare and endangered
plant or animal species within areas of the district proposed for
development.



53356.1.  (a) As a cumulative remedy, if debt is outstanding, the
legislative body may, not later than four years after the due date of
the last installment of principal thereof, order that any delinquent
special taxes levied in whole or in part for payment of the debt,
together with any penalties, interest, and costs, be collected by an
action brought in the superior court to foreclose the lien of special
tax.
   (b) The legislative body may, by resolution, adopted prior to the
issuance of debt under this chapter, covenant for the benefit of
debtholders to commence and diligently pursue any foreclosure action
regarding delinquent installments of any amount levied as a special
tax, in whole or in part, for the payment of interest or principal of
any debt that is incurred, and, at any time may assign the causes of
action arising from the foreclosure to a trustee or joint powers
authority to do so on behalf of the debtholders. The resolution may
specify a deadline for commencement of the foreclosure action and any
other terms and conditions the legislative body determines
reasonable regarding the foreclosure action.
   (c) Except as provided in Section 53356.6, all special taxes,
interest, penalties, costs, fees, and other charges that are
delinquent at the time of the ordering of a foreclosure action shall
be collected in the action. In the event that a lot or parcel of
property has not been sold pursuant to judgment in the foreclosure
action at the time that subsequent special taxes become delinquent,
the court may include the subsequent special taxes, interest,
penalties, costs, fees, and other charges in the judgment or modified
judgment.
   (d) For purposes of financing delinquent special taxes pursuant to
Section 26220 of the Government Code, the legislative body may act
as if it were a board of supervisors.
   (e) Notwithstanding any other provision of this chapter, no
trustee or joint powers authority shall be obligated to accept the
tender of bonds in satisfaction of any obligation arising from a
delinquent special tax, although either may do so if authorized to do
so by the legislative body.
   (f) An action to determine the validity of any bonds issued, any
joint powers agreement entered into, and any related agreements
entered into, by a joint powers agency acting pursuant to this
section may be brought by the joint powers agency pursuant to Chapter
9 (commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. Any appeal from a judgment in the action shall be
commenced within 30 days after entry of judgment.



53356.1.5.  (a) This section applies if delinquent special taxes,
together with any penalties, interest, and costs, are collected
through the sale of the property by the tax collector pursuant to
Chapter 7 (commencing with Section 3691) of Part 6 of Division 1 of
the Revenue and Taxation Code.
   (b) If the property is sold for at least the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, the sale of the property shall extinguish
the delinquent special taxes, interest, penalties, and costs included
in the sale price.
   (c) If the property is sold for less than the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, all of the following apply:
   (1) The portion of the sales price paid by the tax collector to
the local agency on account of the delinquent special taxes shall be
credited by the local agency first to the delinquent interest and
redemption penalties, and then to the delinquent principal.
   (2) The remainder of the delinquent special taxes and redemption
penalties, if any, shall remain due and owing.
   (3) Redemption penalties shall continue to accrue on the remaining
unpaid delinquent special taxes.
   (4) The remaining unpaid amount, with penalties, may be added as
postjudgment delinquencies to any existing unsatisfied foreclosure
judgment against the property, or may be collected in a new
foreclosure action filed pursuant to this chapter.



53356.2.  (a) When any foreclosure actions are ordered by the local
agency or legislative body, or when subsequent installments and
interest that are also to be made the subject of a foreclosure action
thereafter become delinquent, and the foreclosure action is not
commenced and a notice of pendency of action is not concurrently
recorded, prior to the actual removal of the delinquent installment
from the tax roll, the local agency or legislative body responsible
for the foreclosure action on the delinquent installment shall do one
of the following:
   (1) Prior to the actual removal of the delinquent installment from
the tax roll, the local agency or legislative body shall record or
cause to have recorded in the county recorder's office in the county
in which the real property is located, a Notice of Intent to Remove
Delinquent Special Tax Installment from the Tax Roll, which contains
the information set forth in subdivision (b). If action is taken
under this paragraph, all of the following apply:
   (A) Upon presentation of written proof of the recordation and a
request for removal by the local agency or legislative body, the
county auditor shall remove the delinquent installments from the tax
roll. "Proof of recordation" includes, but is not limited to, a
certified copy of the notice set forth in subdivision (b), or a copy
of the recorded notice containing the county recorder's assigned
document number, or a copy of the recorded notice containing a copy
stamp from the office of the county recorder.
   (B) From the date of the recordation, the county tax collector
shall be credited upon the current tax roll with the amount charged
against him or her on account of the delinquent special tax
installment. If any person pays the delinquent installment referred
to in the Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll to the county tax collector prior to or
subsequent to the actual removal of that delinquent installment from
the tax roll, the county auditor shall forward that payment to the
local agency or legislative body responsible for the foreclosure
action.
   (C) From the date of recordation pursuant to this section, the
special tax installment, and interest thereon, and penalties, costs,
fees, and other charges accrued under applicable statutes, that are
to be collected in a foreclosure action, shall no longer be
collectible by the county tax collector.
   (D) The county tax collector, in addition to the costs recovered
in foreclosure, may charge the actual costs incurred in removing
these sums from the tax roll or the performance of any other related
duties as set forth in this section.
   (E) Installments, interest, penalties, costs, fees, and other
charges that do not become the subject of a foreclosure action shall
remain collectible by the county tax collector as otherwise provided
by applicable law.
   (2) As an alternative to the notice requirement set forth in
paragraph (1), the Counties of San Bernardino and Riverside may,
simultaneously with the removal of the delinquent special tax
installment from the secured tax roll, provide notification on the
secured tax roll that the installment has been removed from the roll
for each parcel for which the delinquent special tax installment was
removed. The notice shall be displayed in a manner which conveys that
the removal has occurred, and shall include the name and telephone
number of the person or entity to be contacted to receive further
information.
   (b) The Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll shall be completed and recorded by or
caused to be recorded by the local agency or legislative body
responsible for the foreclosure action, and shall contain all of the
following:
   (1) The name of the local agency or legislative body, city, or
other assessment district responsible for the foreclosure action.
   (2) The legal description or assessor's parcel number of the
property affected by the notice.
   (3) The specific tax year and installment intended to be removed
from the tax roll.
   (4) The title, address, and telephone number of the employee, city
official, or other authorized official who should be contacted
regarding the delinquent assessment installment amount.
   (5) The name of the owner shown on the last equalized assessment
roll.
   (c) Any local agency or legislative body that removed or caused to
be removed a delinquent special tax installment from the ad valorem
tax roll prior to January 1, 1997, shall record, by July 1, 1997, a
Notice of Intent to Remove Delinquent Special Tax Installment from
the Tax Roll or shall request the tax collector to retain the notice
of delinquent special tax installment on the tax roll as set forth in
paragraph (2) of subdivision (a). If the foreclosure action has been
filed and a notice of pendency of action has been recorded in the
county recorder's office prior to July 1, 1997, this requirement does
not apply.
   (d) All costs associated with the county tax collector's and local
agency's or legislative body's responsibilities as set forth in this
section shall be recoverable by the local agency or legislative body
through the foreclosure action.
   (e) The recording of a notice of pendency of action in the county
recorder's office in the county in which the real property is
located, concurrent with the commencement of a foreclosure action
ordered by the local agency or legislative body and commenced prior
to the actual removal from the tax roll of the delinquent installment
which is the subject of the foreclosure action, constitutes
compliance with the notice requirements of this section.



53356.3.  At any time after the tax collector has been relieved of
his or her duty to collect sums under Section 53356.2 and before
judgment in a foreclosure action, the local agency or trustee shall
dismiss the action upon payment of all of the following:
   (a) The amount of any delinquent special taxes together with any
penalties, interest, and costs accrued thereon to date of complete
payment hereunder.
   (b) Costs of suit, including, but not limited to, litigation
guarantees provided by title companies with respect to all claims of
ownership or interest in the subject property.
   (c) Attorneys' fees authorized by the local agency.
   (d) The tax collector's costs authorized by subdivision (d) of
Section 53356.2.



53356.4.  The foreclosure action shall be brought in the name of the
local agency or trustee on behalf of the bondholders pursuant to
Section 53356.1, and may be brought within the time specified in
Section 53356.1. The complaint may be brief and need only include the
following allegations:
   (a) That on a stated date, a certain sum of special taxes, levied
against the subject property (describing it) pursuant to this
chapter, became delinquent.
   (b) On that date, bonds issued pursuant to this chapter, payable
in whole or in part by the subject special taxes, were outstanding.
   (c) That the legislative body or trustee has ordered the
foreclosure.



53356.5.  (a) Any judgment shall decree the amount of the continuing
lien against each parcel to be foreclosed, and shall order the
parcel to be sold on execution as in other cases of the sale of real
property by process of the court except:
   (1) Notwithstanding Section 701.545 of the Code of Civil
Procedure, notice of sale of any lot or parcel included in the
judgment may be given pursuant to Section 701.540 of the Code of
Civil Procedure any time after the expiration of 20 days after the
date notice of levy on the interest in real property was served on
the judgment debtor or debtors, provided that the lot or parcel to be
sold is not a dwelling for not more than four families and provided
that all parties whose liens are extinguished by the foreclosure
judgment were either defendants in the foreclosure action or, for
those parties who acquired an interest in a lien on the parcel after
the recording of notice of the pending foreclosure action, received
constructive notice of the action.
   (2) Whenever notice of sale may be given after the expiration of
20 days after the date notice of levy was served as provided in
paragraph (1), the 30-day time period contained in subdivision (h) of
Section 701.540 of the Code of Civil Procedure shall be reduced to
10 days.
   (3) Upon proof that the lot or parcel to be sold is not a dwelling
for not more than four families, and upon determining that all
parties whose liens are extinguished by the foreclosure judgment were
either defendants in the foreclosure action or, for those parties
who acquired an interest in a lien on the parcel after the recording
of notice of the pending foreclosure action, received constructive
notice of the action, pursuant to Section 716.020 of the Code of
Civil Procedure, the court shall order that paragraphs (1) and (2)
apply to any judgment previously entered.
   (4) The minimum bid amount provided in Section 53356.6 shall apply
instead of subdivision (a) of Section 701.620 of the Code of Civil
Procedure.
   (5) The local agency may bid at the price provided in Section
53356.6 by giving the levying officer a written receipt crediting all
or part of the amount required to satisfy the judgment. If the local
agency becomes the purchaser pursuant to bid, the local agency shall
pay the amount of its credit bid into the redemption fund within 24
months of the date of the foreclosure sale.
   (6) Notwithstanding subdivision (c) of Section 701.620 of the Code
of Civil Procedure, if the minimum price required to be paid for a
lot or parcel pursuant to Section 53356.6 is not obtained at a
foreclosure sale, upon written request of the local agency, the
levying officer shall retain the writ of sale and, provided that the
writ of sale has not been returned to the court pursuant to paragraph
(1) of subdivision (a) of Section 699.560 of the Code of Civil
Procedure, give notice of sale pursuant to Section 701.540 of the
Code of Civil Procedure without relevying on the property.
   (7) As provided elsewhere in this chapter.
   (b) The judgment amount shall include reasonable attorneys' fees
to be fixed by the court, together with interest, penalties, and
other authorized charges and costs (all calculated up to date of
judgment).
   (c) The foreclosure action shall be governed and regulated by the
provisions of this chapter, and also where not in conflict with this
chapter, by other provisions of law generally applicable to
foreclosure actions.



53356.6.  Property sold hereunder may not be sold for less than the
amount of the judgment plus postjudgment interest and authorized
costs without the consent of the owners of 75 percent by value of the
outstanding bonds.


53356.7.  No special tax installment, interest or penalties thereon,
or deed shall be held invalid for any error in computation if the
error is found to be comparatively negligible, or is found to be in
favor of the owner of the real property affected thereby.



53356.8.  Provided the legislative body permits bonds or debt to be
tendered for special taxes and the penalties and interest thereon
pursuant to Section 53344.1, if the highest bid for a lot or parcel
sold pursuant to a judgment of foreclosure and order of sale exceeds
five thousand dollars ($5,000) and the highest bidder elects to treat
the sale as a credit transaction pursuant to subdivision (c) of
Section 701.590 of the Code of Civil Procedure, the balance due as
provided in that section may be paid in full or in part by tender of
bonds or debt, provided, however, that bonds or debt may not be
tendered for costs of foreclosure, including attorney's fees, and
administrative charges incurred by the local agency with respect to
removing the special taxes from the rolls of the treasurer or tax
collector, or other administrative charges.
   (a) Tender of bonds or debt shall be made to the local agency
within seven days of the date of the sale. The local agency shall be
charged with authenticating the tender and shall, within 10 days of
the date of the sale, submit a written receipt to the levying officer
who conducted the sale for the amount of the bond or debt tender
accepted by it.
   (b) Tender of cash or certified check or cashier's check shall be
made to the levying officer within 10 days of the date of the sale.
   (c) The levying officer shall total the cash, certified checks and
cashier's checks, and any agency written receipts for bonds or debt
to determine if the amount of the bid, plus accruing costs and
interests, has been paid. In no event shall the tendering party be
entitled to receive cash or other compensation in return for all or
any part of the value of a tendered bond or bonds, except for
recognition of their value in satisfying the amount bid.
   (d) The tendering party shall comply with the provisions of
Section 53344.1, as applicable as if they were fully set out in this
section.



53356.9.  (a) Notwithstanding any other provision of this chapter or
any other provision of law applicable to foreclosure action, the
judgment of foreclosure and sale of a lot or parcel pursuant to this
chapter shall not terminate or otherwise affect the rights of the
holder of an easement in that lot or parcel.
   (b) No provision of this section shall be interpreted as limiting
any rights otherwise agreed to under existing contract.



53357.  The bonds shall be signed by the chairperson of the
legislative body and countersigned by the clerk of the legislative
body or his or her deputy. All signatures on the bonds may be
printed, lithographed, or engraved. If any officer whose signature
appears on the bonds ceases to be that officer before the delivery of
the bonds, his or her signature is as effective as if he or she had
remained in office. All bonds shall be payable at the office of the
treasurer of the local agency or at the office of any agent
designated by the local agency.


53358.  When the legislative body provides for the fixing and
levying of special taxes and charges for the community facilities
district it shall also provide for the fixing and levying of that
amount of special taxes and charges within the community facilities
district which is required for the payment of the principal of and
interest on any outstanding bonded debt of the community facilities
district, including any necessary replenishment or expenditure of
bond reserve funds or accumulation of funds for future bond payments,
including any amount required by federal law to be rebated to the
United States on that bonded debt. The special tax or charge shall be
levied and collected by the same officers and at the same time and
in the same manner that all other special taxes and charges are
levied and collected for the community facilities district or in any
other manner specified by the legislative body. The special taxes and
charges shall not exceed the authority granted by Article 2
(commencing with Section 53318) and Article 3 (commencing with
Section 53330). All of the collections for payment of principal and
interest on bonds shall be paid into the community facilities
district bond fund and reserve or other fund for the particular
community facilities district and shall be used solely for the
payment of the principal of and interest on the outstanding bonds of
the community facilities district.



53359.  An action to determine the validity of bonds issued pursuant
to this chapter or the validity of any special taxes levied pursuant
to this chapter may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure but shall, notwithstanding the time limits specified in
Section 860 of the Code of Civil Procedure, be commenced within 30
days after the voters approve the issuance of the bonds or the
special tax if the action is brought by an interested person pursuant
to Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within 30
days after entry of judgment.



53359.5.  (a) The legislative body shall, no later than 30 days
prior to the sale of any bonds pursuant to this article, give written
notice of the proposed sale to the California Debt and Investment
Advisory Commission by mail, postage prepaid, or by any other method
approved by the California Debt and Investment Advisory Commission,
as required by Chapter 11.5 (commencing with Section 8855) of
Division 1 of Title 2.
   (b) On and after January 1, 1993, each year after the sale of any
bonds, including refunding bonds, pursuant to this article, and until
the final maturity of the bonds, the legislative body shall, not
later than October 30 of each year, supply the following information
to the California Debt and Investment Advisory Commission by mail,
postage prepaid, or by any other method approved by the California
Debt and Investment Advisory Commission:
   (1) Issuer name.
   (2) Community facilities district number or name.
   (3) Name, title, and series of the bond issue.
   (4) Credit rating and name of the rating agency.
   (5) Date of the bond issue and the original principal amount.
   (6) Reserve fund minimum balance required.
   (7) The principal amount of bonds outstanding.
   (8) The balance in the bond reserve fund.
   (9) The balance in the capitalized interest fund, if any.
   (10) The number of parcels that are delinquent with respect to
their special tax payments, the amount that each parcel is
delinquent, the total amount of special taxes due on the delinquent
parcels, the length of time that each has been delinquent, when
foreclosure was commenced for each delinquent parcel, the total
number of foreclosure parcels for each date specified, and the total
amount of tax due on the foreclosure parcels for each date specified.
   (11) The balance in any construction funds.
   (12) The assessed value of all parcels subject to special tax to
repay the bonds as shown on the most recent equalized roll, the date
of assessed value reported, and the source of the information.
   (13) The total amount of special taxes due, the total amount of
unpaid special taxes, and whether or not the special taxes are paid
under the county's Teeter Plan (Chapter 6.6 (commencing with Section
54773)).
   (14) The reason and the date, if applicable, that the issue was
retired.
   (15) Contact information for the party providing the information.
   (c) In addition, with respect to any bonds sold pursuant to this
article, regardless when sold, and until the final maturity of the
bonds, the legislative body shall notify the California Debt and
Investment Advisory Commission by mail, postage prepaid, or by any
other method approved by the California Debt and Investment Advisory
Commission, within 10 days if any of the following events occur:
   (1) The local agency or its trustee fails to pay principal and
interest due on any scheduled payment date.
   (2) Funds are withdrawn from a reserve fund to pay principal and
interest on the bonds that reduce the reserve fund to less than the
reserve requirement.
   (d) Neither the legislative body nor the California Debt and
Investment Advisory Commission shall be liable for any inadvertent
error in reporting the information required by this section.



53359.7.  Current information on the items listed in Section 53359.5
is a matter of public record, within the meaning of the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1, even if the information is physically held by
an agent or trustee of the public agency. Neither the legislative
body, nor any of its officers, agents, or trustees shall be liable in
any way for making that financial information available to anyone
requesting it or for otherwise making it available to the public.



53360.  The community facilities district may sell the bonds so
issued at the times or in the manner the legislative body deems to be
to the public interest. However, except as otherwise provided in
Section 53360.4, all bonds shall be sold on sealed proposals or
through generally accepted electronic means to the highest bidder,
after advertising for bids by publication of notice of sale pursuant
to Section 53692. If no bids are received or if the legislative body
determines that the bids received are not satisfactory as to price or
responsibility of the bidders, the legislative body may reject all
bids received, if any, and either readvertise or sell the bonds at
private sale.


53360.4.  Notwithstanding Section 53360, the legislative body may
sell bonds at private sale, without advertising for bids, if the
legislative body determines that the action would result in a lower
overall cost.


53360.7.  The legislative body may provide that bonds shall bear a
variable interest rate, and for the manner and intervals in which the
rate shall vary. The variable rate shall not exceed the maximum rate
permitted by Section 53531 or any other applicable provision of law
limiting the maximum interest rate on bonds.


53361.  Any bonds issued by a district organized under the
provisions of this chapter are hereby given the same force, value and
use as bonds issued by any municipality and shall be exempt from all
taxation within the state.


53361.1.  All bonds issued by any district payable from taxes or
charges are legal investments for all trust funds, for the trust
funds of all insurance companies, the state school funds, and any
funds which may be invested in bonds of cities, counties, cities and
counties, school districts, or municipalities in the state.




53362.  The legislative body may, by resolution, issue new bonds to
refund any or all of the district bonds outstanding or improvement
area bonds outstanding that have been issued pursuant to this
article.


53362.5.  Refunding bonds shall not be issued if the total interest
cost to maturity on the refunding bonds plus the principal amount of
the refunding bonds exceeds the total interest cost to maturity on
the bonds to be refunded plus the principal amount of the bonds to be
refunded. Subject to these limitations, the principal amount of the
refunding bonds may be more than, less than, or the same as the
principal amount of the bonds to be refunded.



53362.7.  The total authorized amount of the bonded indebtedness of
a district or an improvement area therein, as approved by the
qualified voter thereof, shall not be reduced by the principal amount
of any refunding bonds issued to refund any or all outstanding bonds
of the district or improvement area. This section does not
constitute a change in, but is declaratory of, the existing law.



53363.  Except as otherwise provided in this article, the
legislative body may issue refunding bonds without repeating any of
the procedures required for the approval of the original bond issue,
if the legislative body determines that it would be prudent in the
management of its fiscal affairs to issue the refunding bonds.




53363.2.  If the legislative body determines to issue refunding
bonds pursuant to this article it shall adopt a resolution providing
for their issuance. The resolution shall:
   (a) Describe the bonds being refunded and state the date on which
it is anticipated that the exchange or purchase necessary to effect
the refunding will occur.
   (b) Fix the date of the refunding bonds.
   (c) Designate the denomination or denominations of the refunding
bonds.
   (d) Fix the minimum rate or rates of interest to be paid on the
refunding bonds.
   (e) Fix the maturity dates of the refunding bonds, which shall not
exceed the latest maturity date of the bonds being refunded.
   (f) Designate the place or places of payment of principal and
interest on the refunding bonds and on the bonds to be refunded.
   (g) Describe the form of the refunding bonds.
   (h) State the designated costs of issuing the refunded bonds, as
defined by Section 53363.8.


53363.5.  Any refunding bonds issued pursuant to this article may be
exchanged for the bonds to be refunded on such basis as the
legislative body determines is for the benefit of the district, but
shall be issued in compliance with Section 53362.5. As an alternative
to exchanging the refunding bonds for the bonds to be refunded, the
legislative body may sell the refunding bonds at public or private
sale. The proceeds of any sale of refunding bonds for cash shall be
placed in the treasury of the local agency to the credit of a fund to
be established for the purpose of refunding the bonds to be
refunded, which fund shall be designated the "refunding fund," and
the proceeds of the sale shall be applied only as permitted by this
article. The funds shall be secured and may be invested in accordance
with any other laws applicable to the funds of the local agency.



53363.7.  The designated costs of issuing the refunding bonds, as
defined by Section 53363.8, may be paid by the purchaser of the
refunding bonds or may be paid from any other legally available
source, including any available revenues of the legislative body, the
proceeds of sale of the refunding bonds, the interest or other gain
derived from the investment of any of the proceeds of sale of the
refunding bonds, or any combination thereof, as determined by the
legislative body. However, any amounts paid by the local agency other
than from the proceeds of sale of the refunding bonds or from
interest or other gains derived from the investment of the proceeds
of sale shall be added to the total interest cost to maturity on the
refunding bonds in determining whether the issuance of the refunding
bonds complies with Section 53362.5.



53363.8.  For purposes of this article, the term "designated costs
of issuing the refunding bonds" means any of the following costs and
expenses designated by the legislative body in the resolution
providing for the issuance of the refunding bonds:
   (a) All expenses incident to the calling, retiring, or paying of
the bonds to be refunded and incident to the issuance of refunding
bonds, including the charges of any agent in connection with the
issuance of the refunding bonds or in connection with the redemption
or retirement of the bonds to be refunded.
   (b) Either of the following:
   (1) The interest upon the refunding bonds from the date of sale of
the refunding bonds to the date of payment of the bonds to be
refunded out of the proceeds of the sale of the refunding bonds or to
the date upon which the bonds to be refunded will be paid pursuant
to call or agreement with the holders of the bonds.
   (2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to be
refunded or to the date upon which the bonds to be refunded will be
paid pursuant to call or agreement with the holders of the bonds.
   (c) Any premium necessary in the calling or retiring of the bonds
to be refunded.


53363.9.  The proceeds and investments in the "refunding fund" shall
be in an amount sufficient to meet either the requirements of
paragraph (a) or paragraph (b) at the time of issuance of the
refunding bonds, as certified by a certified public accountant
licensed to practice in this state.
   (a) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunded bonds as they become due or at
designated dates prior to maturity and the designated costs of
issuance of the refunding bonds.
   (b) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunding bonds prior to the maturity of the
bonds to be refunded or prior to a designated date or dates before
the maturity of the bonds to be refunded, the principal and any
redemption premiums due on the refunded bonds at maturity or upon
that designated date or dates, and the designated costs of issuance
of the refunding bonds.



53364.  Following the issuance of any refunding bonds pursuant to
this article, the treasurer of the local agency shall provide for the
payment of principal and interest on the refunding bonds in the same
manner as for the bonds being refunded. Payments on the refunding
bonds may be made from the "refunding fund" or from the redemption
fund established for the bonds being refunded. However, the bonds
being refunded shall have a priority claim on funds in the redemption
fund.



53364.2.  (a) If further facilities or services are authorized to be
financed by the district, savings achieved through the issuance of
refunding bonds may be used by the legislative body for those
purposes.
   (b) If no further facilities or services are authorized to be
financed by the district, any savings achieved through the issuance
of refunding bonds shall be used by the legislative body to reduce
the special taxes levied to retire outstanding bonds.
   (c) Savings achieved through the issuance of refunding bonds may
be used pursuant to both subdivisions (a) and (b) in proportions
determined by the legislative body.
   (d) For purposes of this section, the terms "savings achieved
through the issuance of refunding bonds" means the difference between
the principal and interest to maturity of the refunded bonds and the
principal and interest to maturity of the refunding bonds.
   (e) If savings are to be used for authorized facilities, bonds may
be issued that are secured by that savings.



53364.5.  Any bonds issued by the district may be made callable by
resolution of the legislative body adopted at or prior to the time of
issuing the bonds. When bonds are made callable a statement to that
effect shall be set forth on the face of the bonds. Callable bonds
may be redeemed on any date prior to their fixed maturity in the
amounts, manner, and prices prescribed by the legislative body.




53365.  Notice designating the bonds called for redemption shall be
mailed to the underwriter or other first purchaser and to the
registered owners of the bonds to be called by first-class mail. The
notice shall be mailed not less than 30 nor more than 90 days prior
to the date fixed for redemption.



53365.5.  If on the date fixed for redemption, the area has provided
funds available for payment of the principal and interest of the
bonds called, interest on the bonds shall cease.



53365.7.  (a) The legislative body may, by resolution and without
the necessity of calling and holding an election, borrow money in
anticipation of the sale of bonds which have been authorized pursuant
to this article, but which have not been sold and delivered, issue
negotiable bond anticipation notes therefor, and renew the notes from
time to time. The maximum maturity of any such notes, including the
renewals thereof, shall not exceed five years from the date of
delivery of the original notes.
   (b) The principal and interest on the notes may be paid from any
money available for their payment. Any portion of the principal or
interest which is due and payable shall be paid from the proceeds of
the next sale of bonds in anticipation of which the notes were
issued.
   (c) The proceeds of notes issued pursuant to this section may be
used for any purpose for which the bonds in anticipation of which the
notes were issued may be used.
   (d) The notes shall not be issued in any amount in excess of the
aggregate amount of bonds which the legislative body has been
authorized to issue, less the amount of any bonds of such authorized
issue which have been previously sold and less the amount of other
bond anticipation notes issued previously and outstanding at that
time.
   (e) The legislative body may, in its resolution authorizing the
issuance of notes, provide that the note shall be subject to call and
redemption prior to maturity, at the option of the district, at such
price or prices as may be fixed in the resolution, but not to exceed
a premium of 6 percent of the par value of the note so subject to
redemption. The resolution shall fix the method of giving notice of
redemption to the holders of notes to be redeemed and the price or
prices at which the note shall be subject to redemption. Any notes
that are subject to call and redemption prior to maturity shall
contain a recital to that effect on their face and no note shall be
subject to call or redemption prior to its fixed maturity date unless
it contains that recital.
   (f) The notes shall be issued and sold in the same manner as the
bonds.
   (g) The notes and the resolution or resolutions authorizing the
same may contain any provisions, conditions, or limitations which a
resolution of the legislative body authorizing the issuance of bonds
may contain.
   (h) The legislative body shall, in its resolution authorizing the
issuance of notes, provide a remedy if the anticipated bonds cannot
be sold at the time or in the amount specified in the resolution, or
if any default occurs with respect to the notes. Any remedy which is
so provided shall limit the obligations of property owners within the
community facilities district to the special tax authorized and
levied pursuant to this chapter, except that the legislative body may
enter into an agreement with any of the property owners within the
district pledging some or all of the real property of those property
owners who are a party to the agreement as additional security for
the notes. The legislative body may authorize the levy of a
supplemental special tax in an amount sufficient to secure a note
issued pursuant to this section, if that special tax is fully
described as to the rate, method of apportionment, and conditions
under which it may be levied in the resolution of intention prepared
pursuant to Section 53321. This special tax shall be subject to the
procedures and voting requirements for any special tax levied under
the authority of this chapter.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 53345-53365.7

GOVERNMENT CODE
SECTION 53345-53365.7



53345.  Whenever the legislative body deems it necessary for the
community facilities district to incur a bonded indebtedness, it
shall, by resolution, set forth all of the following:
   (a) A declaration of the necessity for the indebtedness.
   (b) The purpose for which the proposed debt is to be incurred.
   (c) The amount of the proposed debt. The legislative body may
provide for a reduction in the amount of proposed debt in compliance
with the provisions of Section 53313.9.
   (d) The time and place for a hearing by the legislative body on
the proposed debt authorization.



53345.3.  The amount of the proposed bonded indebtedness may include
all costs and estimated costs incidental to, or connected with, the
accomplishment of the purpose for which the proposed debt is to be
incurred, including, but not limited to, the estimated costs of
construction or acquisition of buildings, or both; acquisition of
land, rights-of-way, water, sewer, or other capacity or connection
fees; lease payments for school facilities, satisfaction of
contractual obligations relating to expenses or the advancement of
funds for expenses existing at the time the bonds are issued pursuant
to this chapter; architectural, engineering, inspection, legal,
fiscal, and financial consultant fees; bond and other reserve funds;
discount fees; interest on any bonds of the district estimated to be
due and payable within two years of issuance of the bonds; election
costs; and all costs of issuance of the bonds, including, but not
limited to, fees for bond counsel, costs of obtaining credit ratings,
bond insurance premiums, fees for letters of credit, and other
credit enhancement costs, and printing costs. Bonds may not be issued
pursuant to this chapter to fund any of the services specified in
Section 53313; however, bonds may be issued to fund capital
facilities to be used in providing these services.



53345.8.  (a) The legislative body may sell bonds pursuant to this
chapter only if it determines prior to the award of sale of bonds
that the value of the real property that would be subject to the
special tax to pay debt service on the bonds will be at least three
times the principal amount of the sum of the following:
   (1) The principal amount of the bonds to be sold.
   (2) The principal amount of all other bonds outstanding that are
secured by a special tax levied pursuant to this chapter on property
within the community facilities district or a special assessment
levied on property within the community facilities district. The
legislative body shall estimate the principal amount of these other
bonds that are secured by property within the district by assuming
that the maximum allowable tax or assessment applicable to each
parcel of property within the district will be levied until the date
of maximum maturity of the bonds. Any determination made pursuant to
this subdivision shall be based upon the full cash value as shown on
the ad valorem assessment roll or upon an appraisal of the subject
property made in a manner consistent with the policies adopted
pursuant to paragraph (5) of subdivision (a) of Section 53312.7 by a
state certified real estate appraiser, as defined in subdivision (c)
of Section 11340 of the Business and Professions Code. The Treasurer
may recommend definitions, standards, and assumptions to be used for
these appraisals. These definitions, standards, and assumptions are
advisory only, and the definitions, standards, and assumptions to be
applied to appraisals will be those adopted by the local agency
pursuant to paragraph (5) of subdivision (a) of Section 53312.7.
   (b) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines that the
proposed bonds do not present any unusual credit risk due to the
availability of credit enhancements, or because a sufficient portion
of the principal amount of a bond issue has been deposited in a
self-financing and self-liquidating escrow account under conditions
such that it cannot be withdrawn until the value of real property
subject to special taxes has increased sufficiently so that the
requirements of subdivision (a) will be met or for other reasons
specified by the legislative body, the provisions of subdivision (a)
may be disregarded.
   (c) Notwithstanding the provisions of subdivision (a), if the
legislative body selling the bonds finds and determines by a vote of
not less than four-fifths of all of its members that the proposed
bond issue should proceed for specified public policy reasons, the
provisions of subdivision (a) may be disregarded.
   A finding and determination by the legislative body pursuant to
this subdivision shall be final and conclusive upon all persons in
the absence of actual fraud, and neither the legislative body nor the
district shall have any liability of any kind whatsoever out of, or
in connection with, any finding and determination.




53346.  The clerk of the legislative body shall publish a notice of
the hearing pursuant to Section 6061 in a newspaper of general
circulation circulated within the district. The notice shall contain
all of the following information:
   (a) The text or a summary of the resolution adopted pursuant to
Section 53345 which may refer to documents on file in the office of
the clerk for detail.
   (b) The time and place of the hearing on the proposal to issue
debt.
   (c) A statement that at the hearing the testimony of all
interested persons, including all persons owning property in the
area, for or against the proposed debt issuance, will be heard.




53348.  At the time and place fixed for the hearing on the
resolution declaring the necessity for incurring the bonded
indebtedness or at any time and place to which the hearing is
adjourned, the legislative body shall proceed with the hearing.




53349.  At the hearing any person interested, including persons
owning property within the area, may appear and present any matters
material to the questions set forth in the resolution declaring the
necessity for incurring the bonded indebtedness.




53350.  For purposes of financing of, or contributing to the
financing of, specified public facilities, the legislative body may
by resolution designate a portion or portions of the district as one
or more improvement areas. An area shall be known as "Improvement
Area No. ____" of "Community Facilities District ____." After the
designation of an improvement area, all proceedings for purposes of a
bond election and for the purpose of levying special taxes for
payment of the bonds, or for any other change pursuant to Article 3
(commencing with Section 53330), shall apply only to the improvement
area for those specified facilities.


53351.  After the legislative body has made its determination
pursuant to Section 53350, if it deems it necessary to incur the
bonded indebtedness, it shall by resolution state all of the
following:
   (a) That it deems it necessary to incur the bonded indebtedness.
   (b) The purpose for which the bonded indebtedness will be
incurred.
   (c) Either of the following in accordance with its previous
determination:
   (1) That the whole of the district will pay for the bonded
indebtedness.
   (2) That a portion of the district will pay for the bonded
indebtedness, which portion shall be described in the resolution of
the board made pursuant to Section 53350.
   (d) The amount of debt to be incurred.
   (e) The maximum term the bonds to be issued shall run before
maturity, which term shall not exceed 40 years.
   (f) The maximum annual rate of interest to be paid, payable
annually or semiannually, or in part annually and in part
semiannually.
   (g) That the proposition will be submitted to the voters.
   (h) The date of the special community facilities district election
(which may be consolidated with a general or special district
election including an election to levy a special tax) at which time
the proposition shall be submitted to the voters.
   (i) If the election is not conducted by mail ballot, the hours
between which the polls shall be open.
   (j) If the election is conducted by mail ballot, the hour when the
mailed ballots are required to be received in the office of the
election officer conducting the election, and that if all qualified
electors have voted, the election shall be closed.



53352.  The resolution provided for in Section 53351 shall
constitute the notice of such special bond election and such
resolution shall be published in a newspaper of general circulation
circulating within the area.



53353.5.  (a) Propositions relating to the levy of a special tax,
the incurring of bonded indebtedness, or to establish or change an
appropriations limit, or any combination thereof, under this chapter,
may be combined into one ballot proposition as determined by the
legislative body. The qualified electors for all of these purposes
shall be determined and the election shall be conducted in the same
manner as for a special tax election pursuant to Section 53326.
   (b) The amendments of this section enacted by the Statutes of 1984
and 1991 do not constitute a change in, but are declaratory of and a
clarification of, the existing law.



53354.  If the area designated in the resolution adopted pursuant to
Section 53351 does not include the entire community facilities
district, a separate ballot shall be prepared for the vote upon the
proposition to authorize bonds and to levy a special tax for payment
of the bonds and only the voters entitled thereto shall be given the
ballots.



53355.  A two-thirds vote shall be required for the issuance of
bonds under authority of this chapter.



53356.  If more than two-thirds of the votes cast at the election
are in favor of incurring the indebtedness, the legislative body may,
by resolution, at the time or times it deems proper, provide for the
following:
   (a) The form of the bonds.
   (b) The execution of the bonds.
   (c) The issuance of any part of the bonds.
   (d) The appointment of one or more banks or trust companies within
or without the state having the necessary trust powers as trustee,
fiscal agent, paying agent, or bond registrar.
   (e) The execution of a trust agreement, indenture, or other
instrument securing the bonds.
   (f) The pledge or assignment of any revenues of the community
facilities district to the repayment of the bonds.
   (g) The investment of any bond proceeds and other revenues,
including special tax revenues, by the trustee or fiscal agent in any
securities or obligations described in the resolution, indenture,
trust agreement, or other instrument providing for the issuance of
the bonds. Investment subject to this subdivision shall comply with
Section 53356.03. The resolution may provide for payment to the
United States from any available revenues of a community facilities
district of any excess investment earnings required to be rebated by
federal law.
   (h) The date or dates to be borne by the bonds and the time or
times of maturity of the bonds and the place or places and time or
times that the bonds shall be payable.
   (i) The interest, fixed or variable, to be borne by the bonds.
   (j) The denominations, form, and registration privileges of the
bonds.
   (k) Any other terms and conditions determined to be necessary by
the legislative body.


53356.03.  The proceeds of any bond, note, or other security issued
pursuant to this chapter, or the proceeds of any bond, note, or other
security issued pursuant to any other authority where revenue
collected pursuant to this chapter is pledged or otherwise committed
to pay or repay principal, interest, or both, shall be deposited or
invested only in one or more of the instruments, securities, or
obligations that are eligible legal investments of the local agency.



53356.05.  The bond indenture or other bond documents may provide
that the legislative body agrees to notify one or more parties,
including the underwriter or other first purchaser of the bonds, an
appropriate national repository for bond information approved by the
Securities and Exchange Commission, or the California Debt and
Investment Advisory Commission, if specified events occur that may
affect the market value of outstanding bonds. These events may
include, but are not limited to, the following, for example:
   (a) Withdrawal of funds from any reserve fund for the bonds, such
that the balance in the fund falls below a specified percentage of
the amount required by bond documents.
   (b) Draw upon a letter of credit or other credit enhancement for
the bonds.
   (c) Filing for bankruptcy by a developer or other owner of more
than a specified percentage of the area or property value within the
district.
   (d) Unforeseen discovery of toxic materials or rare and endangered
plant or animal species within areas of the district proposed for
development.



53356.1.  (a) As a cumulative remedy, if debt is outstanding, the
legislative body may, not later than four years after the due date of
the last installment of principal thereof, order that any delinquent
special taxes levied in whole or in part for payment of the debt,
together with any penalties, interest, and costs, be collected by an
action brought in the superior court to foreclose the lien of special
tax.
   (b) The legislative body may, by resolution, adopted prior to the
issuance of debt under this chapter, covenant for the benefit of
debtholders to commence and diligently pursue any foreclosure action
regarding delinquent installments of any amount levied as a special
tax, in whole or in part, for the payment of interest or principal of
any debt that is incurred, and, at any time may assign the causes of
action arising from the foreclosure to a trustee or joint powers
authority to do so on behalf of the debtholders. The resolution may
specify a deadline for commencement of the foreclosure action and any
other terms and conditions the legislative body determines
reasonable regarding the foreclosure action.
   (c) Except as provided in Section 53356.6, all special taxes,
interest, penalties, costs, fees, and other charges that are
delinquent at the time of the ordering of a foreclosure action shall
be collected in the action. In the event that a lot or parcel of
property has not been sold pursuant to judgment in the foreclosure
action at the time that subsequent special taxes become delinquent,
the court may include the subsequent special taxes, interest,
penalties, costs, fees, and other charges in the judgment or modified
judgment.
   (d) For purposes of financing delinquent special taxes pursuant to
Section 26220 of the Government Code, the legislative body may act
as if it were a board of supervisors.
   (e) Notwithstanding any other provision of this chapter, no
trustee or joint powers authority shall be obligated to accept the
tender of bonds in satisfaction of any obligation arising from a
delinquent special tax, although either may do so if authorized to do
so by the legislative body.
   (f) An action to determine the validity of any bonds issued, any
joint powers agreement entered into, and any related agreements
entered into, by a joint powers agency acting pursuant to this
section may be brought by the joint powers agency pursuant to Chapter
9 (commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. Any appeal from a judgment in the action shall be
commenced within 30 days after entry of judgment.



53356.1.5.  (a) This section applies if delinquent special taxes,
together with any penalties, interest, and costs, are collected
through the sale of the property by the tax collector pursuant to
Chapter 7 (commencing with Section 3691) of Part 6 of Division 1 of
the Revenue and Taxation Code.
   (b) If the property is sold for at least the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, the sale of the property shall extinguish
the delinquent special taxes, interest, penalties, and costs included
in the sale price.
   (c) If the property is sold for less than the total amount
necessary to redeem plus costs, as defined in Section 3698.5 of the
Revenue and Taxation Code, all of the following apply:
   (1) The portion of the sales price paid by the tax collector to
the local agency on account of the delinquent special taxes shall be
credited by the local agency first to the delinquent interest and
redemption penalties, and then to the delinquent principal.
   (2) The remainder of the delinquent special taxes and redemption
penalties, if any, shall remain due and owing.
   (3) Redemption penalties shall continue to accrue on the remaining
unpaid delinquent special taxes.
   (4) The remaining unpaid amount, with penalties, may be added as
postjudgment delinquencies to any existing unsatisfied foreclosure
judgment against the property, or may be collected in a new
foreclosure action filed pursuant to this chapter.



53356.2.  (a) When any foreclosure actions are ordered by the local
agency or legislative body, or when subsequent installments and
interest that are also to be made the subject of a foreclosure action
thereafter become delinquent, and the foreclosure action is not
commenced and a notice of pendency of action is not concurrently
recorded, prior to the actual removal of the delinquent installment
from the tax roll, the local agency or legislative body responsible
for the foreclosure action on the delinquent installment shall do one
of the following:
   (1) Prior to the actual removal of the delinquent installment from
the tax roll, the local agency or legislative body shall record or
cause to have recorded in the county recorder's office in the county
in which the real property is located, a Notice of Intent to Remove
Delinquent Special Tax Installment from the Tax Roll, which contains
the information set forth in subdivision (b). If action is taken
under this paragraph, all of the following apply:
   (A) Upon presentation of written proof of the recordation and a
request for removal by the local agency or legislative body, the
county auditor shall remove the delinquent installments from the tax
roll. "Proof of recordation" includes, but is not limited to, a
certified copy of the notice set forth in subdivision (b), or a copy
of the recorded notice containing the county recorder's assigned
document number, or a copy of the recorded notice containing a copy
stamp from the office of the county recorder.
   (B) From the date of the recordation, the county tax collector
shall be credited upon the current tax roll with the amount charged
against him or her on account of the delinquent special tax
installment. If any person pays the delinquent installment referred
to in the Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll to the county tax collector prior to or
subsequent to the actual removal of that delinquent installment from
the tax roll, the county auditor shall forward that payment to the
local agency or legislative body responsible for the foreclosure
action.
   (C) From the date of recordation pursuant to this section, the
special tax installment, and interest thereon, and penalties, costs,
fees, and other charges accrued under applicable statutes, that are
to be collected in a foreclosure action, shall no longer be
collectible by the county tax collector.
   (D) The county tax collector, in addition to the costs recovered
in foreclosure, may charge the actual costs incurred in removing
these sums from the tax roll or the performance of any other related
duties as set forth in this section.
   (E) Installments, interest, penalties, costs, fees, and other
charges that do not become the subject of a foreclosure action shall
remain collectible by the county tax collector as otherwise provided
by applicable law.
   (2) As an alternative to the notice requirement set forth in
paragraph (1), the Counties of San Bernardino and Riverside may,
simultaneously with the removal of the delinquent special tax
installment from the secured tax roll, provide notification on the
secured tax roll that the installment has been removed from the roll
for each parcel for which the delinquent special tax installment was
removed. The notice shall be displayed in a manner which conveys that
the removal has occurred, and shall include the name and telephone
number of the person or entity to be contacted to receive further
information.
   (b) The Notice of Intent to Remove Delinquent Special Tax
Installment from the Tax Roll shall be completed and recorded by or
caused to be recorded by the local agency or legislative body
responsible for the foreclosure action, and shall contain all of the
following:
   (1) The name of the local agency or legislative body, city, or
other assessment district responsible for the foreclosure action.
   (2) The legal description or assessor's parcel number of the
property affected by the notice.
   (3) The specific tax year and installment intended to be removed
from the tax roll.
   (4) The title, address, and telephone number of the employee, city
official, or other authorized official who should be contacted
regarding the delinquent assessment installment amount.
   (5) The name of the owner shown on the last equalized assessment
roll.
   (c) Any local agency or legislative body that removed or caused to
be removed a delinquent special tax installment from the ad valorem
tax roll prior to January 1, 1997, shall record, by July 1, 1997, a
Notice of Intent to Remove Delinquent Special Tax Installment from
the Tax Roll or shall request the tax collector to retain the notice
of delinquent special tax installment on the tax roll as set forth in
paragraph (2) of subdivision (a). If the foreclosure action has been
filed and a notice of pendency of action has been recorded in the
county recorder's office prior to July 1, 1997, this requirement does
not apply.
   (d) All costs associated with the county tax collector's and local
agency's or legislative body's responsibilities as set forth in this
section shall be recoverable by the local agency or legislative body
through the foreclosure action.
   (e) The recording of a notice of pendency of action in the county
recorder's office in the county in which the real property is
located, concurrent with the commencement of a foreclosure action
ordered by the local agency or legislative body and commenced prior
to the actual removal from the tax roll of the delinquent installment
which is the subject of the foreclosure action, constitutes
compliance with the notice requirements of this section.



53356.3.  At any time after the tax collector has been relieved of
his or her duty to collect sums under Section 53356.2 and before
judgment in a foreclosure action, the local agency or trustee shall
dismiss the action upon payment of all of the following:
   (a) The amount of any delinquent special taxes together with any
penalties, interest, and costs accrued thereon to date of complete
payment hereunder.
   (b) Costs of suit, including, but not limited to, litigation
guarantees provided by title companies with respect to all claims of
ownership or interest in the subject property.
   (c) Attorneys' fees authorized by the local agency.
   (d) The tax collector's costs authorized by subdivision (d) of
Section 53356.2.



53356.4.  The foreclosure action shall be brought in the name of the
local agency or trustee on behalf of the bondholders pursuant to
Section 53356.1, and may be brought within the time specified in
Section 53356.1. The complaint may be brief and need only include the
following allegations:
   (a) That on a stated date, a certain sum of special taxes, levied
against the subject property (describing it) pursuant to this
chapter, became delinquent.
   (b) On that date, bonds issued pursuant to this chapter, payable
in whole or in part by the subject special taxes, were outstanding.
   (c) That the legislative body or trustee has ordered the
foreclosure.



53356.5.  (a) Any judgment shall decree the amount of the continuing
lien against each parcel to be foreclosed, and shall order the
parcel to be sold on execution as in other cases of the sale of real
property by process of the court except:
   (1) Notwithstanding Section 701.545 of the Code of Civil
Procedure, notice of sale of any lot or parcel included in the
judgment may be given pursuant to Section 701.540 of the Code of
Civil Procedure any time after the expiration of 20 days after the
date notice of levy on the interest in real property was served on
the judgment debtor or debtors, provided that the lot or parcel to be
sold is not a dwelling for not more than four families and provided
that all parties whose liens are extinguished by the foreclosure
judgment were either defendants in the foreclosure action or, for
those parties who acquired an interest in a lien on the parcel after
the recording of notice of the pending foreclosure action, received
constructive notice of the action.
   (2) Whenever notice of sale may be given after the expiration of
20 days after the date notice of levy was served as provided in
paragraph (1), the 30-day time period contained in subdivision (h) of
Section 701.540 of the Code of Civil Procedure shall be reduced to
10 days.
   (3) Upon proof that the lot or parcel to be sold is not a dwelling
for not more than four families, and upon determining that all
parties whose liens are extinguished by the foreclosure judgment were
either defendants in the foreclosure action or, for those parties
who acquired an interest in a lien on the parcel after the recording
of notice of the pending foreclosure action, received constructive
notice of the action, pursuant to Section 716.020 of the Code of
Civil Procedure, the court shall order that paragraphs (1) and (2)
apply to any judgment previously entered.
   (4) The minimum bid amount provided in Section 53356.6 shall apply
instead of subdivision (a) of Section 701.620 of the Code of Civil
Procedure.
   (5) The local agency may bid at the price provided in Section
53356.6 by giving the levying officer a written receipt crediting all
or part of the amount required to satisfy the judgment. If the local
agency becomes the purchaser pursuant to bid, the local agency shall
pay the amount of its credit bid into the redemption fund within 24
months of the date of the foreclosure sale.
   (6) Notwithstanding subdivision (c) of Section 701.620 of the Code
of Civil Procedure, if the minimum price required to be paid for a
lot or parcel pursuant to Section 53356.6 is not obtained at a
foreclosure sale, upon written request of the local agency, the
levying officer shall retain the writ of sale and, provided that the
writ of sale has not been returned to the court pursuant to paragraph
(1) of subdivision (a) of Section 699.560 of the Code of Civil
Procedure, give notice of sale pursuant to Section 701.540 of the
Code of Civil Procedure without relevying on the property.
   (7) As provided elsewhere in this chapter.
   (b) The judgment amount shall include reasonable attorneys' fees
to be fixed by the court, together with interest, penalties, and
other authorized charges and costs (all calculated up to date of
judgment).
   (c) The foreclosure action shall be governed and regulated by the
provisions of this chapter, and also where not in conflict with this
chapter, by other provisions of law generally applicable to
foreclosure actions.



53356.6.  Property sold hereunder may not be sold for less than the
amount of the judgment plus postjudgment interest and authorized
costs without the consent of the owners of 75 percent by value of the
outstanding bonds.


53356.7.  No special tax installment, interest or penalties thereon,
or deed shall be held invalid for any error in computation if the
error is found to be comparatively negligible, or is found to be in
favor of the owner of the real property affected thereby.



53356.8.  Provided the legislative body permits bonds or debt to be
tendered for special taxes and the penalties and interest thereon
pursuant to Section 53344.1, if the highest bid for a lot or parcel
sold pursuant to a judgment of foreclosure and order of sale exceeds
five thousand dollars ($5,000) and the highest bidder elects to treat
the sale as a credit transaction pursuant to subdivision (c) of
Section 701.590 of the Code of Civil Procedure, the balance due as
provided in that section may be paid in full or in part by tender of
bonds or debt, provided, however, that bonds or debt may not be
tendered for costs of foreclosure, including attorney's fees, and
administrative charges incurred by the local agency with respect to
removing the special taxes from the rolls of the treasurer or tax
collector, or other administrative charges.
   (a) Tender of bonds or debt shall be made to the local agency
within seven days of the date of the sale. The local agency shall be
charged with authenticating the tender and shall, within 10 days of
the date of the sale, submit a written receipt to the levying officer
who conducted the sale for the amount of the bond or debt tender
accepted by it.
   (b) Tender of cash or certified check or cashier's check shall be
made to the levying officer within 10 days of the date of the sale.
   (c) The levying officer shall total the cash, certified checks and
cashier's checks, and any agency written receipts for bonds or debt
to determine if the amount of the bid, plus accruing costs and
interests, has been paid. In no event shall the tendering party be
entitled to receive cash or other compensation in return for all or
any part of the value of a tendered bond or bonds, except for
recognition of their value in satisfying the amount bid.
   (d) The tendering party shall comply with the provisions of
Section 53344.1, as applicable as if they were fully set out in this
section.



53356.9.  (a) Notwithstanding any other provision of this chapter or
any other provision of law applicable to foreclosure action, the
judgment of foreclosure and sale of a lot or parcel pursuant to this
chapter shall not terminate or otherwise affect the rights of the
holder of an easement in that lot or parcel.
   (b) No provision of this section shall be interpreted as limiting
any rights otherwise agreed to under existing contract.



53357.  The bonds shall be signed by the chairperson of the
legislative body and countersigned by the clerk of the legislative
body or his or her deputy. All signatures on the bonds may be
printed, lithographed, or engraved. If any officer whose signature
appears on the bonds ceases to be that officer before the delivery of
the bonds, his or her signature is as effective as if he or she had
remained in office. All bonds shall be payable at the office of the
treasurer of the local agency or at the office of any agent
designated by the local agency.


53358.  When the legislative body provides for the fixing and
levying of special taxes and charges for the community facilities
district it shall also provide for the fixing and levying of that
amount of special taxes and charges within the community facilities
district which is required for the payment of the principal of and
interest on any outstanding bonded debt of the community facilities
district, including any necessary replenishment or expenditure of
bond reserve funds or accumulation of funds for future bond payments,
including any amount required by federal law to be rebated to the
United States on that bonded debt. The special tax or charge shall be
levied and collected by the same officers and at the same time and
in the same manner that all other special taxes and charges are
levied and collected for the community facilities district or in any
other manner specified by the legislative body. The special taxes and
charges shall not exceed the authority granted by Article 2
(commencing with Section 53318) and Article 3 (commencing with
Section 53330). All of the collections for payment of principal and
interest on bonds shall be paid into the community facilities
district bond fund and reserve or other fund for the particular
community facilities district and shall be used solely for the
payment of the principal of and interest on the outstanding bonds of
the community facilities district.



53359.  An action to determine the validity of bonds issued pursuant
to this chapter or the validity of any special taxes levied pursuant
to this chapter may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure but shall, notwithstanding the time limits specified in
Section 860 of the Code of Civil Procedure, be commenced within 30
days after the voters approve the issuance of the bonds or the
special tax if the action is brought by an interested person pursuant
to Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within 30
days after entry of judgment.



53359.5.  (a) The legislative body shall, no later than 30 days
prior to the sale of any bonds pursuant to this article, give written
notice of the proposed sale to the California Debt and Investment
Advisory Commission by mail, postage prepaid, or by any other method
approved by the California Debt and Investment Advisory Commission,
as required by Chapter 11.5 (commencing with Section 8855) of
Division 1 of Title 2.
   (b) On and after January 1, 1993, each year after the sale of any
bonds, including refunding bonds, pursuant to this article, and until
the final maturity of the bonds, the legislative body shall, not
later than October 30 of each year, supply the following information
to the California Debt and Investment Advisory Commission by mail,
postage prepaid, or by any other method approved by the California
Debt and Investment Advisory Commission:
   (1) Issuer name.
   (2) Community facilities district number or name.
   (3) Name, title, and series of the bond issue.
   (4) Credit rating and name of the rating agency.
   (5) Date of the bond issue and the original principal amount.
   (6) Reserve fund minimum balance required.
   (7) The principal amount of bonds outstanding.
   (8) The balance in the bond reserve fund.
   (9) The balance in the capitalized interest fund, if any.
   (10) The number of parcels that are delinquent with respect to
their special tax payments, the amount that each parcel is
delinquent, the total amount of special taxes due on the delinquent
parcels, the length of time that each has been delinquent, when
foreclosure was commenced for each delinquent parcel, the total
number of foreclosure parcels for each date specified, and the total
amount of tax due on the foreclosure parcels for each date specified.
   (11) The balance in any construction funds.
   (12) The assessed value of all parcels subject to special tax to
repay the bonds as shown on the most recent equalized roll, the date
of assessed value reported, and the source of the information.
   (13) The total amount of special taxes due, the total amount of
unpaid special taxes, and whether or not the special taxes are paid
under the county's Teeter Plan (Chapter 6.6 (commencing with Section
54773)).
   (14) The reason and the date, if applicable, that the issue was
retired.
   (15) Contact information for the party providing the information.
   (c) In addition, with respect to any bonds sold pursuant to this
article, regardless when sold, and until the final maturity of the
bonds, the legislative body shall notify the California Debt and
Investment Advisory Commission by mail, postage prepaid, or by any
other method approved by the California Debt and Investment Advisory
Commission, within 10 days if any of the following events occur:
   (1) The local agency or its trustee fails to pay principal and
interest due on any scheduled payment date.
   (2) Funds are withdrawn from a reserve fund to pay principal and
interest on the bonds that reduce the reserve fund to less than the
reserve requirement.
   (d) Neither the legislative body nor the California Debt and
Investment Advisory Commission shall be liable for any inadvertent
error in reporting the information required by this section.



53359.7.  Current information on the items listed in Section 53359.5
is a matter of public record, within the meaning of the California
Public Records Act, Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1, even if the information is physically held by
an agent or trustee of the public agency. Neither the legislative
body, nor any of its officers, agents, or trustees shall be liable in
any way for making that financial information available to anyone
requesting it or for otherwise making it available to the public.



53360.  The community facilities district may sell the bonds so
issued at the times or in the manner the legislative body deems to be
to the public interest. However, except as otherwise provided in
Section 53360.4, all bonds shall be sold on sealed proposals or
through generally accepted electronic means to the highest bidder,
after advertising for bids by publication of notice of sale pursuant
to Section 53692. If no bids are received or if the legislative body
determines that the bids received are not satisfactory as to price or
responsibility of the bidders, the legislative body may reject all
bids received, if any, and either readvertise or sell the bonds at
private sale.


53360.4.  Notwithstanding Section 53360, the legislative body may
sell bonds at private sale, without advertising for bids, if the
legislative body determines that the action would result in a lower
overall cost.


53360.7.  The legislative body may provide that bonds shall bear a
variable interest rate, and for the manner and intervals in which the
rate shall vary. The variable rate shall not exceed the maximum rate
permitted by Section 53531 or any other applicable provision of law
limiting the maximum interest rate on bonds.


53361.  Any bonds issued by a district organized under the
provisions of this chapter are hereby given the same force, value and
use as bonds issued by any municipality and shall be exempt from all
taxation within the state.


53361.1.  All bonds issued by any district payable from taxes or
charges are legal investments for all trust funds, for the trust
funds of all insurance companies, the state school funds, and any
funds which may be invested in bonds of cities, counties, cities and
counties, school districts, or municipalities in the state.




53362.  The legislative body may, by resolution, issue new bonds to
refund any or all of the district bonds outstanding or improvement
area bonds outstanding that have been issued pursuant to this
article.


53362.5.  Refunding bonds shall not be issued if the total interest
cost to maturity on the refunding bonds plus the principal amount of
the refunding bonds exceeds the total interest cost to maturity on
the bonds to be refunded plus the principal amount of the bonds to be
refunded. Subject to these limitations, the principal amount of the
refunding bonds may be more than, less than, or the same as the
principal amount of the bonds to be refunded.



53362.7.  The total authorized amount of the bonded indebtedness of
a district or an improvement area therein, as approved by the
qualified voter thereof, shall not be reduced by the principal amount
of any refunding bonds issued to refund any or all outstanding bonds
of the district or improvement area. This section does not
constitute a change in, but is declaratory of, the existing law.



53363.  Except as otherwise provided in this article, the
legislative body may issue refunding bonds without repeating any of
the procedures required for the approval of the original bond issue,
if the legislative body determines that it would be prudent in the
management of its fiscal affairs to issue the refunding bonds.




53363.2.  If the legislative body determines to issue refunding
bonds pursuant to this article it shall adopt a resolution providing
for their issuance. The resolution shall:
   (a) Describe the bonds being refunded and state the date on which
it is anticipated that the exchange or purchase necessary to effect
the refunding will occur.
   (b) Fix the date of the refunding bonds.
   (c) Designate the denomination or denominations of the refunding
bonds.
   (d) Fix the minimum rate or rates of interest to be paid on the
refunding bonds.
   (e) Fix the maturity dates of the refunding bonds, which shall not
exceed the latest maturity date of the bonds being refunded.
   (f) Designate the place or places of payment of principal and
interest on the refunding bonds and on the bonds to be refunded.
   (g) Describe the form of the refunding bonds.
   (h) State the designated costs of issuing the refunded bonds, as
defined by Section 53363.8.


53363.5.  Any refunding bonds issued pursuant to this article may be
exchanged for the bonds to be refunded on such basis as the
legislative body determines is for the benefit of the district, but
shall be issued in compliance with Section 53362.5. As an alternative
to exchanging the refunding bonds for the bonds to be refunded, the
legislative body may sell the refunding bonds at public or private
sale. The proceeds of any sale of refunding bonds for cash shall be
placed in the treasury of the local agency to the credit of a fund to
be established for the purpose of refunding the bonds to be
refunded, which fund shall be designated the "refunding fund," and
the proceeds of the sale shall be applied only as permitted by this
article. The funds shall be secured and may be invested in accordance
with any other laws applicable to the funds of the local agency.



53363.7.  The designated costs of issuing the refunding bonds, as
defined by Section 53363.8, may be paid by the purchaser of the
refunding bonds or may be paid from any other legally available
source, including any available revenues of the legislative body, the
proceeds of sale of the refunding bonds, the interest or other gain
derived from the investment of any of the proceeds of sale of the
refunding bonds, or any combination thereof, as determined by the
legislative body. However, any amounts paid by the local agency other
than from the proceeds of sale of the refunding bonds or from
interest or other gains derived from the investment of the proceeds
of sale shall be added to the total interest cost to maturity on the
refunding bonds in determining whether the issuance of the refunding
bonds complies with Section 53362.5.



53363.8.  For purposes of this article, the term "designated costs
of issuing the refunding bonds" means any of the following costs and
expenses designated by the legislative body in the resolution
providing for the issuance of the refunding bonds:
   (a) All expenses incident to the calling, retiring, or paying of
the bonds to be refunded and incident to the issuance of refunding
bonds, including the charges of any agent in connection with the
issuance of the refunding bonds or in connection with the redemption
or retirement of the bonds to be refunded.
   (b) Either of the following:
   (1) The interest upon the refunding bonds from the date of sale of
the refunding bonds to the date of payment of the bonds to be
refunded out of the proceeds of the sale of the refunding bonds or to
the date upon which the bonds to be refunded will be paid pursuant
to call or agreement with the holders of the bonds.
   (2) The interest upon the bonds to be refunded from the date of
sale of the refunding bonds to the date of payment of the bonds to be
refunded or to the date upon which the bonds to be refunded will be
paid pursuant to call or agreement with the holders of the bonds.
   (c) Any premium necessary in the calling or retiring of the bonds
to be refunded.


53363.9.  The proceeds and investments in the "refunding fund" shall
be in an amount sufficient to meet either the requirements of
paragraph (a) or paragraph (b) at the time of issuance of the
refunding bonds, as certified by a certified public accountant
licensed to practice in this state.
   (a) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunded bonds as they become due or at
designated dates prior to maturity and the designated costs of
issuance of the refunding bonds.
   (b) The proceeds and investments, together with any interest or
other gain to be derived from any such investment, shall be in an
amount sufficient to pay the principal, interest, and redemption
premiums, if any, on the refunding bonds prior to the maturity of the
bonds to be refunded or prior to a designated date or dates before
the maturity of the bonds to be refunded, the principal and any
redemption premiums due on the refunded bonds at maturity or upon
that designated date or dates, and the designated costs of issuance
of the refunding bonds.



53364.  Following the issuance of any refunding bonds pursuant to
this article, the treasurer of the local agency shall provide for the
payment of principal and interest on the refunding bonds in the same
manner as for the bonds being refunded. Payments on the refunding
bonds may be made from the "refunding fund" or from the redemption
fund established for the bonds being refunded. However, the bonds
being refunded shall have a priority claim on funds in the redemption
fund.



53364.2.  (a) If further facilities or services are authorized to be
financed by the district, savings achieved through the issuance of
refunding bonds may be used by the legislative body for those
purposes.
   (b) If no further facilities or services are authorized to be
financed by the district, any savings achieved through the issuance
of refunding bonds shall be used by the legislative body to reduce
the special taxes levied to retire outstanding bonds.
   (c) Savings achieved through the issuance of refunding bonds may
be used pursuant to both subdivisions (a) and (b) in proportions
determined by the legislative body.
   (d) For purposes of this section, the terms "savings achieved
through the issuance of refunding bonds" means the difference between
the principal and interest to maturity of the refunded bonds and the
principal and interest to maturity of the refunding bonds.
   (e) If savings are to be used for authorized facilities, bonds may
be issued that are secured by that savings.



53364.5.  Any bonds issued by the district may be made callable by
resolution of the legislative body adopted at or prior to the time of
issuing the bonds. When bonds are made callable a statement to that
effect shall be set forth on the face of the bonds. Callable bonds
may be redeemed on any date prior to their fixed maturity in the
amounts, manner, and prices prescribed by the legislative body.




53365.  Notice designating the bonds called for redemption shall be
mailed to the underwriter or other first purchaser and to the
registered owners of the bonds to be called by first-class mail. The
notice shall be mailed not less than 30 nor more than 90 days prior
to the date fixed for redemption.



53365.5.  If on the date fixed for redemption, the area has provided
funds available for payment of the principal and interest of the
bonds called, interest on the bonds shall cease.



53365.7.  (a) The legislative body may, by resolution and without
the necessity of calling and holding an election, borrow money in
anticipation of the sale of bonds which have been authorized pursuant
to this article, but which have not been sold and delivered, issue
negotiable bond anticipation notes therefor, and renew the notes from
time to time. The maximum maturity of any such notes, including the
renewals thereof, shall not exceed five years from the date of
delivery of the original notes.
   (b) The principal and interest on the notes may be paid from any
money available for their payment. Any portion of the principal or
interest which is due and payable shall be paid from the proceeds of
the next sale of bonds in anticipation of which the notes were
issued.
   (c) The proceeds of notes issued pursuant to this section may be
used for any purpose for which the bonds in anticipation of which the
notes were issued may be used.
   (d) The notes shall not be issued in any amount in excess of the
aggregate amount of bonds which the legislative body has been
authorized to issue, less the amount of any bonds of such authorized
issue which have been previously sold and less the amount of other
bond anticipation notes issued previously and outstanding at that
time.
   (e) The legislative body may, in its resolution authorizing the
issuance of notes, provide that the note shall be subject to call and
redemption prior to maturity, at the option of the district, at such
price or prices as may be fixed in the resolution, but not to exceed
a premium of 6 percent of the par value of the note so subject to
redemption. The resolution shall fix the method of giving notice of
redemption to the holders of notes to be redeemed and the price or
prices at which the note shall be subject to redemption. Any notes
that are subject to call and redemption prior to maturity shall
contain a recital to that effect on their face and no note shall be
subject to call or redemption prior to its fixed maturity date unless
it contains that recital.
   (f) The notes shall be issued and sold in the same manner as the
bonds.
   (g) The notes and the resolution or resolutions authorizing the
same may contain any provisions, conditions, or limitations which a
resolution of the legislative body authorizing the issuance of bonds
may contain.
   (h) The legislative body shall, in its resolution authorizing the
issuance of notes, provide a remedy if the anticipated bonds cannot
be sold at the time or in the amount specified in the resolution, or
if any default occurs with respect to the notes. Any remedy which is
so provided shall limit the obligations of property owners within the
community facilities district to the special tax authorized and
levied pursuant to this chapter, except that the legislative body may
enter into an agreement with any of the property owners within the
district pledging some or all of the real property of those property
owners who are a party to the agreement as additional security for
the notes. The legislative body may authorize the levy of a
supplemental special tax in an amount sufficient to secure a note
issued pursuant to this section, if that special tax is fully
described as to the rate, method of apportionment, and conditions
under which it may be levied in the resolution of intention prepared
pursuant to Section 53321. This special tax shall be subject to the
procedures and voting requirements for any special tax levied under
the authority of this chapter.