53580. The following terms shall have the following meanings:
(a) The term "local agency" means public district, public
corporation, authority, agency, board, commission, county, city and
county, city, school district, or other public entity or any
improvement district or zone thereof.
(b) The term "bonds" as used in this article means: bonds as
defined in Section 53550, or revenue bonds as defined in Section
53570.
(c) The term "refunding bonds" means bonds issued to refund bonds.
(d) The term "federal securities" as used in this article means
those securities defined in subdivision (g) of Section 53550 and in
subdivision (a) of Section 53651.
53581. Notwithstanding the provisions of any other law, the
provisions of this article shall apply to all refunding bonds of any
local agency, regardless of the authority for their issuance.
53582. The proceedings of any local agency authorizing the issuance
of bonds shall not require the deposit of any more moneys,
obligations, and federal securities as are sufficient, taking into
account both the principal amount of the moneys, obligations, and
securities and the interest to become due thereon, to implement the
refunding of those bonds. Federal securities and the interest thereon
shall be used to satisfy any requirement of cash, money, specie, or
lawful money in any proceeding conducted by a local agency before
September 19, 1975.
53583. (a) Any local agency may issue bonds pursuant to this
article or any revenue bond law under which the local agency is
otherwise authorized to issue bonds for the purpose of refunding any
revenue bonds of the local agency or, if the local agency is a joint
powers authority, any revenue bonds of a member local agency, upon
authorization by resolution of that member of the joint powers
authority.
(b) The proceedings of any local agency authorizing the issuance
of any refunding bonds may provide all of the following for those
bonds:
(1) The form of the bonds to be issued as serial bonds, term
bonds, or installment bonds, or any combination thereof.
(2) The date or dates to be borne by the bonds.
(3) The time or times of maturity of the bonds.
(4) The interest, fixed or variable, to be borne by the bonds.
(5) The time or times that the bonds shall be payable.
(6) The denominations, form, and the registration privileges of
the bonds.
(7) The manner of execution of the bonds.
(8) The place or places the bonds are payable.
(9) The terms of redemption.
(10) Any other terms and conditions determined necessary by the
local agency.
(c) (1) The refunding bonds may be sold at public or private sale
or on a negotiated sale basis and at the prices, above or below par,
as the local agency determines.
(2) (A) If the local agency determines to sell the bonds at public
sale, the local agency shall advertise the bonds for sale and invite
sealed bids on the bonds by publication of a notice once at least 10
days before the date of the public sale in a newspaper of general
circulation circulated within the boundaries of each local agency to
be aided by the project to be financed by the issuance of the bonds.
If one or more satisfactory bids are received pursuant to the notice,
the bonds shall be awarded to the highest responsible bidder. If no
bids are received or if the local agency determines that the bids
received are not satisfactory as to price or responsibility of the
bidders, the local agency may reject all bids received, if any, and
either readvertise or sell the bonds at private sale or on a
negotiated sale basis.
(B) If the local agency determines to sell the bonds at private
sale or on a negotiated sale basis, the local agency shall send a
written statement, within two weeks after the bonds are sold, to the
California Debt Advisory Commission explaining the reasons why the
local agency determined to sell the bonds at private sale or on a
negotiated sale basis instead of at public sale.
53583.5. If the original bonds to be refunded under this article
were issued under Section 33760, 34312, or 52080 of the Health and
Safety Code, the refunding bonds shall require a regulatory agreement
that complies with subdivision (d) of Section 33760 of, or paragraph
(2) of subdivision (d) of Section 34312 of, or subdivision (g) of
Section 52080 of, the Health and Safety Code.
53584. The proceeds of refunding bonds may be applied to the
purchase, retirement at maturity, or redemption of the bonds to be
refunded either at their earliest redemption date or dates, any
subsequent redemption date or dates, upon their purchase or
retirement maturity, or paid to a third person to assume the local
agency's obligation to make the payments, and may, pending that
application, be placed in escrow and invested or reinvested in any
obligations or securities, and any interest or other increment earned
or realized on any such investment may be applied to the payment of
the bonds to be refunded or to the payment of interest on the
refunding bonds, as provided in the proceedings of the local agency
authorizing the issuance of the refunding bonds.
53584.1. In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County
may provide in the resolution authorizing the issuance of those
refunding bonds for the pledge of any taxes, income, revenue, cash
receipts, rents, or other moneys of Orange County, including moneys
deposited in inactive or term deposit accounts, or rights to receive
the same, to the extent that the taxes, income, revenue, cash
receipts, rents, or other moneys could have been used to pay
principal or interest on the refunded bonds. The priority and
perfection of the pledge shall be governed by Chapter 5.5 (commencing
with Section 5450) of Division 6 of Title 1.
53585. A local agency that issues refunding bonds may obtain
insurance or other credit enhancement of the refunding bonds or of
the escrow referred to in Section 53584 and may enter into any credit
reimbursement agreement or other agreement with any person or
entity. The agreement shall contain the terms of the credit
reimbursement, interest rate, security, and any other terms the local
agency deems necessary or appropriate.
53585.1. (a) In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County,
in the resolution authorizing the issuance of refunding bonds, may
provide that Orange County elects to guarantee payment of the
refunding bonds in accordance with the following:
(1) If Orange County elects to participate under this section, it
shall provide notice to the Controller of that election, which notice
shall include a schedule for the repayment of principal and interest
on the bonds, and identify a refunding bond trustee appointed by
Orange County for the purposes of this section. The notice may be
provided at the time of issuance of the refunding bonds or at a later
date.
(2) In the event that, for any reason, the funds available for the
payment of principal and interest of the bonds will not be
sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
Orange County shall so notify the trustee. The trustee shall
immediately communicate that information to the affected bondholders
and to the Controller.
(3) When the Controller receives notice from the trustee as
described in paragraph (2) that the funds made available pursuant to
this article for the payment of principal and interest of the bonds
is not sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
the Controller shall make an apportionment to the trustee in the
amount of that required payment for the purpose of making that
payment. The Controller shall make that payment only from moneys
credited to the Motor Vehicle License Fee Account in the
Transportation Tax Fund to which Orange County is entitled at that
time under Chapter 5 (commencing with Section 11001) of Part 5 of
Division 2 of the Revenue and Taxation Code, and shall thereupon
reduce, by the amount of the payment, the subsequent allocation or
allocations to which Orange County would otherwise be entitled under
that chapter.
(4) As an alternate to the procedure set forth in paragraphs (2)
and (3), Orange County may specify in the notice provided to the
Controller pursuant to paragraph (1) a schedule of payments to be
made on specified dates to the trustee, and the Controller shall,
subject to the limitation in the second sentence of paragraph (3),
make apportionments to the trustee in the amount of the required
payments on the specified dates.
(b) This section shall not be construed to obligate the State of
California to make any payment to Orange County from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to Orange County, including, but not limited to,
any payment in satisfaction of any debt or liability incurred or
guaranteed by Orange County in accordance with this section.
53586. Notwithstanding Section 53583, the outstanding bonds of the
project areas of the redevelopment agency of the City of San
Bernardino, which were merged into one and designated Central City by
Chapter 1227 of the Statutes of 1983, may be refunded on the first
date on which the bonds may legally be called, or on any date or
dates thereafter, or at the maturity date or dates of the outstanding
bonds without regard to the dates on which the outstanding bonds may
legally be called.
Nothing in this section shall be construed as modifying the
requirements for low- and moderate-income housing set forth in
Section 33471.5 of the Health and Safety Code.
53587. In determining the amount of refunding bonds to be issued,
the local agency may include all costs of issuing the refunding bonds
and of refunding the bonds to be refunded, including the amount of
any premium required to be paid to redeem any of the bonds to be
refunded, any capitalized interest or bond reserve funds which the
local agency determines to be reasonably required, and the cost of
any insurance or other credit enhancement authorized by Section
53585.
53588. The issuance, transfer, and interest income earned on any
bonds issued by a local agency under this article is exempt from
taxation of every kind by any state or local entity. The local agency
shall not be required to pay any taxes on, or with respect to, the
income earned on the investment of proceeds of the bonds placed in
escrow or otherwise.
53589. This article provides a complete, additional, and
alternative method for doing the things authorized by this article
and shall be regarded as supplemental and additional to the powers
conferred by any other laws. The issuance of bonds and the entering
into any credit reimbursement or other agreement under this article
does not need to comply with the requirements of any other law
applicable to the local agency or the issuance of bonds or the
incurring of indebtedness, except that bonds which were subject to
investigations, reports, and approval or certification by the
Treasurer pursuant to the District Securities Investigation Law of
1965, Chapter 2.5 (commencing with Section 58750) of Division 2 of
Title 6, and the Districts Securities Law, Chapter 1 (commencing with
Section 20000) of Division 10 of the Water Code prior to the
adoption of this article shall continue to be subject to the
investigations, reports, and approval or certification.
53589.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any issuance or proposed
issuance of refunding bonds under this article, and the legality and
validity of all proceedings previously taken or proposed to be taken
in a resolution or ordinance adopted by the local agency for the
authorization, issuance, sale, and delivery of the bonds, for
entering into any credit reimbursement or other agreement in
connection therewith, for the use of the proceeds of the bonds, and
for the payment of the principal of, and interest on, the bonds.
53580. The following terms shall have the following meanings:
(a) The term "local agency" means public district, public
corporation, authority, agency, board, commission, county, city and
county, city, school district, or other public entity or any
improvement district or zone thereof.
(b) The term "bonds" as used in this article means: bonds as
defined in Section 53550, or revenue bonds as defined in Section
53570.
(c) The term "refunding bonds" means bonds issued to refund bonds.
(d) The term "federal securities" as used in this article means
those securities defined in subdivision (g) of Section 53550 and in
subdivision (a) of Section 53651.
53581. Notwithstanding the provisions of any other law, the
provisions of this article shall apply to all refunding bonds of any
local agency, regardless of the authority for their issuance.
53582. The proceedings of any local agency authorizing the issuance
of bonds shall not require the deposit of any more moneys,
obligations, and federal securities as are sufficient, taking into
account both the principal amount of the moneys, obligations, and
securities and the interest to become due thereon, to implement the
refunding of those bonds. Federal securities and the interest thereon
shall be used to satisfy any requirement of cash, money, specie, or
lawful money in any proceeding conducted by a local agency before
September 19, 1975.
53583. (a) Any local agency may issue bonds pursuant to this
article or any revenue bond law under which the local agency is
otherwise authorized to issue bonds for the purpose of refunding any
revenue bonds of the local agency or, if the local agency is a joint
powers authority, any revenue bonds of a member local agency, upon
authorization by resolution of that member of the joint powers
authority.
(b) The proceedings of any local agency authorizing the issuance
of any refunding bonds may provide all of the following for those
bonds:
(1) The form of the bonds to be issued as serial bonds, term
bonds, or installment bonds, or any combination thereof.
(2) The date or dates to be borne by the bonds.
(3) The time or times of maturity of the bonds.
(4) The interest, fixed or variable, to be borne by the bonds.
(5) The time or times that the bonds shall be payable.
(6) The denominations, form, and the registration privileges of
the bonds.
(7) The manner of execution of the bonds.
(8) The place or places the bonds are payable.
(9) The terms of redemption.
(10) Any other terms and conditions determined necessary by the
local agency.
(c) (1) The refunding bonds may be sold at public or private sale
or on a negotiated sale basis and at the prices, above or below par,
as the local agency determines.
(2) (A) If the local agency determines to sell the bonds at public
sale, the local agency shall advertise the bonds for sale and invite
sealed bids on the bonds by publication of a notice once at least 10
days before the date of the public sale in a newspaper of general
circulation circulated within the boundaries of each local agency to
be aided by the project to be financed by the issuance of the bonds.
If one or more satisfactory bids are received pursuant to the notice,
the bonds shall be awarded to the highest responsible bidder. If no
bids are received or if the local agency determines that the bids
received are not satisfactory as to price or responsibility of the
bidders, the local agency may reject all bids received, if any, and
either readvertise or sell the bonds at private sale or on a
negotiated sale basis.
(B) If the local agency determines to sell the bonds at private
sale or on a negotiated sale basis, the local agency shall send a
written statement, within two weeks after the bonds are sold, to the
California Debt Advisory Commission explaining the reasons why the
local agency determined to sell the bonds at private sale or on a
negotiated sale basis instead of at public sale.
53583.5. If the original bonds to be refunded under this article
were issued under Section 33760, 34312, or 52080 of the Health and
Safety Code, the refunding bonds shall require a regulatory agreement
that complies with subdivision (d) of Section 33760 of, or paragraph
(2) of subdivision (d) of Section 34312 of, or subdivision (g) of
Section 52080 of, the Health and Safety Code.
53584. The proceeds of refunding bonds may be applied to the
purchase, retirement at maturity, or redemption of the bonds to be
refunded either at their earliest redemption date or dates, any
subsequent redemption date or dates, upon their purchase or
retirement maturity, or paid to a third person to assume the local
agency's obligation to make the payments, and may, pending that
application, be placed in escrow and invested or reinvested in any
obligations or securities, and any interest or other increment earned
or realized on any such investment may be applied to the payment of
the bonds to be refunded or to the payment of interest on the
refunding bonds, as provided in the proceedings of the local agency
authorizing the issuance of the refunding bonds.
53584.1. In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County
may provide in the resolution authorizing the issuance of those
refunding bonds for the pledge of any taxes, income, revenue, cash
receipts, rents, or other moneys of Orange County, including moneys
deposited in inactive or term deposit accounts, or rights to receive
the same, to the extent that the taxes, income, revenue, cash
receipts, rents, or other moneys could have been used to pay
principal or interest on the refunded bonds. The priority and
perfection of the pledge shall be governed by Chapter 5.5 (commencing
with Section 5450) of Division 6 of Title 1.
53585. A local agency that issues refunding bonds may obtain
insurance or other credit enhancement of the refunding bonds or of
the escrow referred to in Section 53584 and may enter into any credit
reimbursement agreement or other agreement with any person or
entity. The agreement shall contain the terms of the credit
reimbursement, interest rate, security, and any other terms the local
agency deems necessary or appropriate.
53585.1. (a) In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County,
in the resolution authorizing the issuance of refunding bonds, may
provide that Orange County elects to guarantee payment of the
refunding bonds in accordance with the following:
(1) If Orange County elects to participate under this section, it
shall provide notice to the Controller of that election, which notice
shall include a schedule for the repayment of principal and interest
on the bonds, and identify a refunding bond trustee appointed by
Orange County for the purposes of this section. The notice may be
provided at the time of issuance of the refunding bonds or at a later
date.
(2) In the event that, for any reason, the funds available for the
payment of principal and interest of the bonds will not be
sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
Orange County shall so notify the trustee. The trustee shall
immediately communicate that information to the affected bondholders
and to the Controller.
(3) When the Controller receives notice from the trustee as
described in paragraph (2) that the funds made available pursuant to
this article for the payment of principal and interest of the bonds
is not sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
the Controller shall make an apportionment to the trustee in the
amount of that required payment for the purpose of making that
payment. The Controller shall make that payment only from moneys
credited to the Motor Vehicle License Fee Account in the
Transportation Tax Fund to which Orange County is entitled at that
time under Chapter 5 (commencing with Section 11001) of Part 5 of
Division 2 of the Revenue and Taxation Code, and shall thereupon
reduce, by the amount of the payment, the subsequent allocation or
allocations to which Orange County would otherwise be entitled under
that chapter.
(4) As an alternate to the procedure set forth in paragraphs (2)
and (3), Orange County may specify in the notice provided to the
Controller pursuant to paragraph (1) a schedule of payments to be
made on specified dates to the trustee, and the Controller shall,
subject to the limitation in the second sentence of paragraph (3),
make apportionments to the trustee in the amount of the required
payments on the specified dates.
(b) This section shall not be construed to obligate the State of
California to make any payment to Orange County from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to Orange County, including, but not limited to,
any payment in satisfaction of any debt or liability incurred or
guaranteed by Orange County in accordance with this section.
53586. Notwithstanding Section 53583, the outstanding bonds of the
project areas of the redevelopment agency of the City of San
Bernardino, which were merged into one and designated Central City by
Chapter 1227 of the Statutes of 1983, may be refunded on the first
date on which the bonds may legally be called, or on any date or
dates thereafter, or at the maturity date or dates of the outstanding
bonds without regard to the dates on which the outstanding bonds may
legally be called.
Nothing in this section shall be construed as modifying the
requirements for low- and moderate-income housing set forth in
Section 33471.5 of the Health and Safety Code.
53587. In determining the amount of refunding bonds to be issued,
the local agency may include all costs of issuing the refunding bonds
and of refunding the bonds to be refunded, including the amount of
any premium required to be paid to redeem any of the bonds to be
refunded, any capitalized interest or bond reserve funds which the
local agency determines to be reasonably required, and the cost of
any insurance or other credit enhancement authorized by Section
53585.
53588. The issuance, transfer, and interest income earned on any
bonds issued by a local agency under this article is exempt from
taxation of every kind by any state or local entity. The local agency
shall not be required to pay any taxes on, or with respect to, the
income earned on the investment of proceeds of the bonds placed in
escrow or otherwise.
53589. This article provides a complete, additional, and
alternative method for doing the things authorized by this article
and shall be regarded as supplemental and additional to the powers
conferred by any other laws. The issuance of bonds and the entering
into any credit reimbursement or other agreement under this article
does not need to comply with the requirements of any other law
applicable to the local agency or the issuance of bonds or the
incurring of indebtedness, except that bonds which were subject to
investigations, reports, and approval or certification by the
Treasurer pursuant to the District Securities Investigation Law of
1965, Chapter 2.5 (commencing with Section 58750) of Division 2 of
Title 6, and the Districts Securities Law, Chapter 1 (commencing with
Section 20000) of Division 10 of the Water Code prior to the
adoption of this article shall continue to be subject to the
investigations, reports, and approval or certification.
53589.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any issuance or proposed
issuance of refunding bonds under this article, and the legality and
validity of all proceedings previously taken or proposed to be taken
in a resolution or ordinance adopted by the local agency for the
authorization, issuance, sale, and delivery of the bonds, for
entering into any credit reimbursement or other agreement in
connection therewith, for the use of the proceeds of the bonds, and
for the payment of the principal of, and interest on, the bonds.
53580. The following terms shall have the following meanings:
(a) The term "local agency" means public district, public
corporation, authority, agency, board, commission, county, city and
county, city, school district, or other public entity or any
improvement district or zone thereof.
(b) The term "bonds" as used in this article means: bonds as
defined in Section 53550, or revenue bonds as defined in Section
53570.
(c) The term "refunding bonds" means bonds issued to refund bonds.
(d) The term "federal securities" as used in this article means
those securities defined in subdivision (g) of Section 53550 and in
subdivision (a) of Section 53651.
53581. Notwithstanding the provisions of any other law, the
provisions of this article shall apply to all refunding bonds of any
local agency, regardless of the authority for their issuance.
53582. The proceedings of any local agency authorizing the issuance
of bonds shall not require the deposit of any more moneys,
obligations, and federal securities as are sufficient, taking into
account both the principal amount of the moneys, obligations, and
securities and the interest to become due thereon, to implement the
refunding of those bonds. Federal securities and the interest thereon
shall be used to satisfy any requirement of cash, money, specie, or
lawful money in any proceeding conducted by a local agency before
September 19, 1975.
53583. (a) Any local agency may issue bonds pursuant to this
article or any revenue bond law under which the local agency is
otherwise authorized to issue bonds for the purpose of refunding any
revenue bonds of the local agency or, if the local agency is a joint
powers authority, any revenue bonds of a member local agency, upon
authorization by resolution of that member of the joint powers
authority.
(b) The proceedings of any local agency authorizing the issuance
of any refunding bonds may provide all of the following for those
bonds:
(1) The form of the bonds to be issued as serial bonds, term
bonds, or installment bonds, or any combination thereof.
(2) The date or dates to be borne by the bonds.
(3) The time or times of maturity of the bonds.
(4) The interest, fixed or variable, to be borne by the bonds.
(5) The time or times that the bonds shall be payable.
(6) The denominations, form, and the registration privileges of
the bonds.
(7) The manner of execution of the bonds.
(8) The place or places the bonds are payable.
(9) The terms of redemption.
(10) Any other terms and conditions determined necessary by the
local agency.
(c) (1) The refunding bonds may be sold at public or private sale
or on a negotiated sale basis and at the prices, above or below par,
as the local agency determines.
(2) (A) If the local agency determines to sell the bonds at public
sale, the local agency shall advertise the bonds for sale and invite
sealed bids on the bonds by publication of a notice once at least 10
days before the date of the public sale in a newspaper of general
circulation circulated within the boundaries of each local agency to
be aided by the project to be financed by the issuance of the bonds.
If one or more satisfactory bids are received pursuant to the notice,
the bonds shall be awarded to the highest responsible bidder. If no
bids are received or if the local agency determines that the bids
received are not satisfactory as to price or responsibility of the
bidders, the local agency may reject all bids received, if any, and
either readvertise or sell the bonds at private sale or on a
negotiated sale basis.
(B) If the local agency determines to sell the bonds at private
sale or on a negotiated sale basis, the local agency shall send a
written statement, within two weeks after the bonds are sold, to the
California Debt Advisory Commission explaining the reasons why the
local agency determined to sell the bonds at private sale or on a
negotiated sale basis instead of at public sale.
53583.5. If the original bonds to be refunded under this article
were issued under Section 33760, 34312, or 52080 of the Health and
Safety Code, the refunding bonds shall require a regulatory agreement
that complies with subdivision (d) of Section 33760 of, or paragraph
(2) of subdivision (d) of Section 34312 of, or subdivision (g) of
Section 52080 of, the Health and Safety Code.
53584. The proceeds of refunding bonds may be applied to the
purchase, retirement at maturity, or redemption of the bonds to be
refunded either at their earliest redemption date or dates, any
subsequent redemption date or dates, upon their purchase or
retirement maturity, or paid to a third person to assume the local
agency's obligation to make the payments, and may, pending that
application, be placed in escrow and invested or reinvested in any
obligations or securities, and any interest or other increment earned
or realized on any such investment may be applied to the payment of
the bonds to be refunded or to the payment of interest on the
refunding bonds, as provided in the proceedings of the local agency
authorizing the issuance of the refunding bonds.
53584.1. In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County
may provide in the resolution authorizing the issuance of those
refunding bonds for the pledge of any taxes, income, revenue, cash
receipts, rents, or other moneys of Orange County, including moneys
deposited in inactive or term deposit accounts, or rights to receive
the same, to the extent that the taxes, income, revenue, cash
receipts, rents, or other moneys could have been used to pay
principal or interest on the refunded bonds. The priority and
perfection of the pledge shall be governed by Chapter 5.5 (commencing
with Section 5450) of Division 6 of Title 1.
53585. A local agency that issues refunding bonds may obtain
insurance or other credit enhancement of the refunding bonds or of
the escrow referred to in Section 53584 and may enter into any credit
reimbursement agreement or other agreement with any person or
entity. The agreement shall contain the terms of the credit
reimbursement, interest rate, security, and any other terms the local
agency deems necessary or appropriate.
53585.1. (a) In issuing refunding bonds to honor warrants to school
districts, community college districts, and other local agencies in
settlement of bankruptcy, the Board of Supervisors of Orange County,
in the resolution authorizing the issuance of refunding bonds, may
provide that Orange County elects to guarantee payment of the
refunding bonds in accordance with the following:
(1) If Orange County elects to participate under this section, it
shall provide notice to the Controller of that election, which notice
shall include a schedule for the repayment of principal and interest
on the bonds, and identify a refunding bond trustee appointed by
Orange County for the purposes of this section. The notice may be
provided at the time of issuance of the refunding bonds or at a later
date.
(2) In the event that, for any reason, the funds available for the
payment of principal and interest of the bonds will not be
sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
Orange County shall so notify the trustee. The trustee shall
immediately communicate that information to the affected bondholders
and to the Controller.
(3) When the Controller receives notice from the trustee as
described in paragraph (2) that the funds made available pursuant to
this article for the payment of principal and interest of the bonds
is not sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those bonds,
the Controller shall make an apportionment to the trustee in the
amount of that required payment for the purpose of making that
payment. The Controller shall make that payment only from moneys
credited to the Motor Vehicle License Fee Account in the
Transportation Tax Fund to which Orange County is entitled at that
time under Chapter 5 (commencing with Section 11001) of Part 5 of
Division 2 of the Revenue and Taxation Code, and shall thereupon
reduce, by the amount of the payment, the subsequent allocation or
allocations to which Orange County would otherwise be entitled under
that chapter.
(4) As an alternate to the procedure set forth in paragraphs (2)
and (3), Orange County may specify in the notice provided to the
Controller pursuant to paragraph (1) a schedule of payments to be
made on specified dates to the trustee, and the Controller shall,
subject to the limitation in the second sentence of paragraph (3),
make apportionments to the trustee in the amount of the required
payments on the specified dates.
(b) This section shall not be construed to obligate the State of
California to make any payment to Orange County from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to Orange County, including, but not limited to,
any payment in satisfaction of any debt or liability incurred or
guaranteed by Orange County in accordance with this section.
53586. Notwithstanding Section 53583, the outstanding bonds of the
project areas of the redevelopment agency of the City of San
Bernardino, which were merged into one and designated Central City by
Chapter 1227 of the Statutes of 1983, may be refunded on the first
date on which the bonds may legally be called, or on any date or
dates thereafter, or at the maturity date or dates of the outstanding
bonds without regard to the dates on which the outstanding bonds may
legally be called.
Nothing in this section shall be construed as modifying the
requirements for low- and moderate-income housing set forth in
Section 33471.5 of the Health and Safety Code.
53587. In determining the amount of refunding bonds to be issued,
the local agency may include all costs of issuing the refunding bonds
and of refunding the bonds to be refunded, including the amount of
any premium required to be paid to redeem any of the bonds to be
refunded, any capitalized interest or bond reserve funds which the
local agency determines to be reasonably required, and the cost of
any insurance or other credit enhancement authorized by Section
53585.
53588. The issuance, transfer, and interest income earned on any
bonds issued by a local agency under this article is exempt from
taxation of every kind by any state or local entity. The local agency
shall not be required to pay any taxes on, or with respect to, the
income earned on the investment of proceeds of the bonds placed in
escrow or otherwise.
53589. This article provides a complete, additional, and
alternative method for doing the things authorized by this article
and shall be regarded as supplemental and additional to the powers
conferred by any other laws. The issuance of bonds and the entering
into any credit reimbursement or other agreement under this article
does not need to comply with the requirements of any other law
applicable to the local agency or the issuance of bonds or the
incurring of indebtedness, except that bonds which were subject to
investigations, reports, and approval or certification by the
Treasurer pursuant to the District Securities Investigation Law of
1965, Chapter 2.5 (commencing with Section 58750) of Division 2 of
Title 6, and the Districts Securities Law, Chapter 1 (commencing with
Section 20000) of Division 10 of the Water Code prior to the
adoption of this article shall continue to be subject to the
investigations, reports, and approval or certification.
53589.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any issuance or proposed
issuance of refunding bonds under this article, and the legality and
validity of all proceedings previously taken or proposed to be taken
in a resolution or ordinance adopted by the local agency for the
authorization, issuance, sale, and delivery of the bonds, for
entering into any credit reimbursement or other agreement in
connection therewith, for the use of the proceeds of the bonds, and
for the payment of the principal of, and interest on, the bonds.
