State Codes and Statutes

Statutes > California > Gov > 53859-53859.08

GOVERNMENT CODE
SECTION 53859-53859.08



53859.  As used in this article: (a) "local agency" means county,
city and county, city, school district, community college district,
or any other municipal or public corporation or district.
   (b) "Grant anticipation note" means a note issued upon the
security of specified accounts receivable from state or federal
governments, including, without limitation, grants, loans, or a
combination of both, for which funds have been appropriated and
committed to a local agency.
   (c) "Loan" includes, but is not limited to, a borrowing by a local
agency represented or to be represented by bonds of a local agency.



53859.01.  The powers conferred by this article are in addition to
and alternative to any powers conferred by any other law for
borrowing by a local agency and any amount borrowed hereunder shall
not be considered in any limitation on the amount which may be
borrowed by any such local agency under any other law.



53859.02.  (a) A local agency may borrow money pursuant to this
article, the indebtedness to be represented by a grant anticipation
note or notes issued to the lender pursuant to this article. The
money borrowed may be used and expended by the local agency solely
for the purpose for which the grant or loan is to be received.
   (b) Proceeds of sales or funds set aside for the repayment of any
notes issued pursuant to this article shall not be invested for a
term that exceeds the term of the notes.



53859.03.  The grant anticipation note or notes shall be issued
pursuant to a resolution authorizing the issuance thereof, adopted by
the legislative body of the local agency, except that the note or
notes of a school or community college district shall be issued in
the name of the school or community college district by the board of
supervisors of the county whose county superintendent of which has
jurisdiction over the school or community college district, as soon
as possible following receipt of a resolution of the governing board
of the school or community college district requesting the borrowing.
Grant anticipation notes authorized to be issued may be issued from
time to time as provided in such resolution. The resolution shall set
forth the form and the manner of execution of the grant anticipation
note or notes.



53859.04.  Any grant anticipation note issued under this article may
be negotiable or may be payable to order or to bearer and may be in
any denomination. Except as limited by the Constitution of the State
of California, such note shall be payable not later than 36 months
after the date of issue and shall be payable solely, except as
provided in Section 53859.07, from committed and appropriated funds
of grants or loans of the state or federal government to the local
agency that the granting or loaning authority states shall be paid on
specified dates or events within a 36-month period from the dating
of the grant anticipation notes issued. Such note may be sold at
public or private sale at a discount of not to exceed 2 percent of
the par value thereof. Such note may bear interest not to exceed 10
percent per annum, payable as provided on its face. Such interest may
be represented by coupons attached to such note or notes.
   In those instances where the Constitution of the State of
California limits a local agency from incurring an indebtedness or
liability in any year which is in excess of income and revenue for
that year, a note or notes issued pursuant to this article may be
made payable during the fiscal year next succeeding the fiscal year
in which they have been issued, but in no event later than 15 months
after the date of issue; provided that such note or notes shall be
payable only from income and revenue received or accrued during the
fiscal year in which the note or notes were issued.




53859.05.  The resolution authorizing the issuance of any note may
provide that such note shall be subject to call and redemption prior
to maturity, at the option of the local agency, at such price or
prices as may be fixed in the resolution, not exceeding a premium of
3 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
holder of the note to be redeemed and the price or prices at which
the note shall be subject to redemption. A note so subject to call
and redemption prior to maturity shall contain a recital to that
effect on its face, and no note shall be subject to call or
redemption prior to its fixed maturity date unless it contains such
recital.



53859.06.  Grant or loan funds from the state or federal government
for any legally authorized capital improvement for which the local
agency is authorized to expend moneys, when stated by the granting or
loaning authority to be committed, appropriated and payable to the
local agency on a specified date or dates, or event or events, shall
be pledged for the payment of the grant anticipation note or notes
and the interest thereon. The note or notes and the interest thereon
are a first lien upon and charge against the grant or loan funds.



53859.07.  Notwithstanding the provisions of Sections 53854 and
53856, any note issued pursuant to this article to the extent not
paid from grant or loan funds of the local agency pledged for the
payment thereof, shall be paid with the interest thereon to the
extent permitted by law from any taxes, income, revenue, cash
receipts, or other moneys of local agency lawfully available
therefor. Taxes, income, revenue, cash receipts or other moneys of
the local agency lawfully available to pay a loan may be used to pay
any note issued in anticipation of such loan, pending the granting of
the loan.



53859.08.  A grant or loan anticipation note or notes shall not be
issued pursuant to this article in an amount at any time outstanding
which shall exceed 95 percent of the grant or loan funds stated in
writing by the granting or loaning authority as committed,
appropriated and that shall be paid on a specified date or dates, or
event or events, within a 36-month period from the dating of such
notes.


State Codes and Statutes

Statutes > California > Gov > 53859-53859.08

GOVERNMENT CODE
SECTION 53859-53859.08



53859.  As used in this article: (a) "local agency" means county,
city and county, city, school district, community college district,
or any other municipal or public corporation or district.
   (b) "Grant anticipation note" means a note issued upon the
security of specified accounts receivable from state or federal
governments, including, without limitation, grants, loans, or a
combination of both, for which funds have been appropriated and
committed to a local agency.
   (c) "Loan" includes, but is not limited to, a borrowing by a local
agency represented or to be represented by bonds of a local agency.



53859.01.  The powers conferred by this article are in addition to
and alternative to any powers conferred by any other law for
borrowing by a local agency and any amount borrowed hereunder shall
not be considered in any limitation on the amount which may be
borrowed by any such local agency under any other law.



53859.02.  (a) A local agency may borrow money pursuant to this
article, the indebtedness to be represented by a grant anticipation
note or notes issued to the lender pursuant to this article. The
money borrowed may be used and expended by the local agency solely
for the purpose for which the grant or loan is to be received.
   (b) Proceeds of sales or funds set aside for the repayment of any
notes issued pursuant to this article shall not be invested for a
term that exceeds the term of the notes.



53859.03.  The grant anticipation note or notes shall be issued
pursuant to a resolution authorizing the issuance thereof, adopted by
the legislative body of the local agency, except that the note or
notes of a school or community college district shall be issued in
the name of the school or community college district by the board of
supervisors of the county whose county superintendent of which has
jurisdiction over the school or community college district, as soon
as possible following receipt of a resolution of the governing board
of the school or community college district requesting the borrowing.
Grant anticipation notes authorized to be issued may be issued from
time to time as provided in such resolution. The resolution shall set
forth the form and the manner of execution of the grant anticipation
note or notes.



53859.04.  Any grant anticipation note issued under this article may
be negotiable or may be payable to order or to bearer and may be in
any denomination. Except as limited by the Constitution of the State
of California, such note shall be payable not later than 36 months
after the date of issue and shall be payable solely, except as
provided in Section 53859.07, from committed and appropriated funds
of grants or loans of the state or federal government to the local
agency that the granting or loaning authority states shall be paid on
specified dates or events within a 36-month period from the dating
of the grant anticipation notes issued. Such note may be sold at
public or private sale at a discount of not to exceed 2 percent of
the par value thereof. Such note may bear interest not to exceed 10
percent per annum, payable as provided on its face. Such interest may
be represented by coupons attached to such note or notes.
   In those instances where the Constitution of the State of
California limits a local agency from incurring an indebtedness or
liability in any year which is in excess of income and revenue for
that year, a note or notes issued pursuant to this article may be
made payable during the fiscal year next succeeding the fiscal year
in which they have been issued, but in no event later than 15 months
after the date of issue; provided that such note or notes shall be
payable only from income and revenue received or accrued during the
fiscal year in which the note or notes were issued.




53859.05.  The resolution authorizing the issuance of any note may
provide that such note shall be subject to call and redemption prior
to maturity, at the option of the local agency, at such price or
prices as may be fixed in the resolution, not exceeding a premium of
3 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
holder of the note to be redeemed and the price or prices at which
the note shall be subject to redemption. A note so subject to call
and redemption prior to maturity shall contain a recital to that
effect on its face, and no note shall be subject to call or
redemption prior to its fixed maturity date unless it contains such
recital.



53859.06.  Grant or loan funds from the state or federal government
for any legally authorized capital improvement for which the local
agency is authorized to expend moneys, when stated by the granting or
loaning authority to be committed, appropriated and payable to the
local agency on a specified date or dates, or event or events, shall
be pledged for the payment of the grant anticipation note or notes
and the interest thereon. The note or notes and the interest thereon
are a first lien upon and charge against the grant or loan funds.



53859.07.  Notwithstanding the provisions of Sections 53854 and
53856, any note issued pursuant to this article to the extent not
paid from grant or loan funds of the local agency pledged for the
payment thereof, shall be paid with the interest thereon to the
extent permitted by law from any taxes, income, revenue, cash
receipts, or other moneys of local agency lawfully available
therefor. Taxes, income, revenue, cash receipts or other moneys of
the local agency lawfully available to pay a loan may be used to pay
any note issued in anticipation of such loan, pending the granting of
the loan.



53859.08.  A grant or loan anticipation note or notes shall not be
issued pursuant to this article in an amount at any time outstanding
which shall exceed 95 percent of the grant or loan funds stated in
writing by the granting or loaning authority as committed,
appropriated and that shall be paid on a specified date or dates, or
event or events, within a 36-month period from the dating of such
notes.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 53859-53859.08

GOVERNMENT CODE
SECTION 53859-53859.08



53859.  As used in this article: (a) "local agency" means county,
city and county, city, school district, community college district,
or any other municipal or public corporation or district.
   (b) "Grant anticipation note" means a note issued upon the
security of specified accounts receivable from state or federal
governments, including, without limitation, grants, loans, or a
combination of both, for which funds have been appropriated and
committed to a local agency.
   (c) "Loan" includes, but is not limited to, a borrowing by a local
agency represented or to be represented by bonds of a local agency.



53859.01.  The powers conferred by this article are in addition to
and alternative to any powers conferred by any other law for
borrowing by a local agency and any amount borrowed hereunder shall
not be considered in any limitation on the amount which may be
borrowed by any such local agency under any other law.



53859.02.  (a) A local agency may borrow money pursuant to this
article, the indebtedness to be represented by a grant anticipation
note or notes issued to the lender pursuant to this article. The
money borrowed may be used and expended by the local agency solely
for the purpose for which the grant or loan is to be received.
   (b) Proceeds of sales or funds set aside for the repayment of any
notes issued pursuant to this article shall not be invested for a
term that exceeds the term of the notes.



53859.03.  The grant anticipation note or notes shall be issued
pursuant to a resolution authorizing the issuance thereof, adopted by
the legislative body of the local agency, except that the note or
notes of a school or community college district shall be issued in
the name of the school or community college district by the board of
supervisors of the county whose county superintendent of which has
jurisdiction over the school or community college district, as soon
as possible following receipt of a resolution of the governing board
of the school or community college district requesting the borrowing.
Grant anticipation notes authorized to be issued may be issued from
time to time as provided in such resolution. The resolution shall set
forth the form and the manner of execution of the grant anticipation
note or notes.



53859.04.  Any grant anticipation note issued under this article may
be negotiable or may be payable to order or to bearer and may be in
any denomination. Except as limited by the Constitution of the State
of California, such note shall be payable not later than 36 months
after the date of issue and shall be payable solely, except as
provided in Section 53859.07, from committed and appropriated funds
of grants or loans of the state or federal government to the local
agency that the granting or loaning authority states shall be paid on
specified dates or events within a 36-month period from the dating
of the grant anticipation notes issued. Such note may be sold at
public or private sale at a discount of not to exceed 2 percent of
the par value thereof. Such note may bear interest not to exceed 10
percent per annum, payable as provided on its face. Such interest may
be represented by coupons attached to such note or notes.
   In those instances where the Constitution of the State of
California limits a local agency from incurring an indebtedness or
liability in any year which is in excess of income and revenue for
that year, a note or notes issued pursuant to this article may be
made payable during the fiscal year next succeeding the fiscal year
in which they have been issued, but in no event later than 15 months
after the date of issue; provided that such note or notes shall be
payable only from income and revenue received or accrued during the
fiscal year in which the note or notes were issued.




53859.05.  The resolution authorizing the issuance of any note may
provide that such note shall be subject to call and redemption prior
to maturity, at the option of the local agency, at such price or
prices as may be fixed in the resolution, not exceeding a premium of
3 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
holder of the note to be redeemed and the price or prices at which
the note shall be subject to redemption. A note so subject to call
and redemption prior to maturity shall contain a recital to that
effect on its face, and no note shall be subject to call or
redemption prior to its fixed maturity date unless it contains such
recital.



53859.06.  Grant or loan funds from the state or federal government
for any legally authorized capital improvement for which the local
agency is authorized to expend moneys, when stated by the granting or
loaning authority to be committed, appropriated and payable to the
local agency on a specified date or dates, or event or events, shall
be pledged for the payment of the grant anticipation note or notes
and the interest thereon. The note or notes and the interest thereon
are a first lien upon and charge against the grant or loan funds.



53859.07.  Notwithstanding the provisions of Sections 53854 and
53856, any note issued pursuant to this article to the extent not
paid from grant or loan funds of the local agency pledged for the
payment thereof, shall be paid with the interest thereon to the
extent permitted by law from any taxes, income, revenue, cash
receipts, or other moneys of local agency lawfully available
therefor. Taxes, income, revenue, cash receipts or other moneys of
the local agency lawfully available to pay a loan may be used to pay
any note issued in anticipation of such loan, pending the granting of
the loan.



53859.08.  A grant or loan anticipation note or notes shall not be
issued pursuant to this article in an amount at any time outstanding
which shall exceed 95 percent of the grant or loan funds stated in
writing by the granting or loaning authority as committed,
appropriated and that shall be paid on a specified date or dates, or
event or events, within a 36-month period from the dating of such
notes.