SECTIONS 63060-63067

63060.  (a) There is hereby created in the State Treasury theCalifornia Infrastructure Guarantee Trust Fund. Notwithstanding Section 13340 and except as provided insubdivision (b), all money in the guarantee trust fund is herebycontinuously appropriated to the bank without regard to fiscal yearsfor the purpose of insuring all or a portion of the accounts andsubaccounts within the infrastructure bank fund, any contracts orobligations of the bank or a sponsor, and all or a part of any seriesof bonds issued by the bank, by a special purpose trust, or by asponsor pursuant to this division, and for the purpose of defrayingadministrative expenses incurred by the bank in operating theprograms of loan and bond guarantee. All insurance premiums receivedby the bank for insurance, guarantees, or enhancements providedpursuant to this division shall be deposited in the guarantee trustfund. The guarantee trust fund is authorized to guarantee all or apart of any of the accounts and subaccounts within the infrastructurebank fund, any contracts or obligations of the bank, a specialpurpose trust, or a sponsor, and all or part of any series of bondsissued by the bank, by a special purpose trust, or by a sponsor andto authorize payment on any guarantee or enhancement of the guaranteetrust fund. (b) Moneys in the infrastructure bank fund shall be available forexpenditure for general administration only upon appropriation by theLegislature. This subdivision shall not limit the authority of thebank to expend funds directly related to the servicing of approveddebt.63061.  Notwithstanding Chapter 2 (commencing with Section 12850) ofPart 2.5 of Division 3 of Title 2 and Article 2 (commencing withSection 13320) of Chapter 3 of Part 3 of Division 3 of Title 2,expenditure of the guarantee trust fund shall not be subject to thesupervision or approval of any other officer or division of stategovernment, with the exception of the Legislature. However, the bank's budget respecting the guarantee trust fund shall be prepared andreviewed not later than November 1 of each year and the bank shallsubmit to the Legislature a report of its activities for the priorfiscal year. However, the bank's budget regarding the infrastructurebank fund shall be prepared and reviewed in accordance with Section50913, and, not later than November 1 of each year, the agency shallsubmit to the Legislature a report of its activities for the priorfiscal year. The bank's operating budget shall be subject to reviewand appropriation in the annual Budget Act.63062.  (a) The bank may, from time to time, direct the Treasurer toinvest moneys in the guarantee trust fund that are not required forits current needs in any eligible securities specified in Section16430 that the bank shall designate. The bank may direct theTreasurer to invest the moneys by entering into repurchase agreementsor reverse repurchase agreements, which, for purposes of thissection, shall mean agreements for the purchase or sale of eligiblesecurities pursuant to which the seller or buyer agrees to repurchaseor sell back the securities on or before a specified date and for aspecified amount. The bank may direct the Treasurer to invest themoneys in the subordinated securities of the bank, a special purposetrust, or a sponsor. The bank may direct the Treasurer to invest themoneys in investment agreements with corporations, financialinstitutions, or national associations within the United States thatare rated by a nationally recognized rating service within the topthree rating categories of the service. For purposes of this section,investment agreements shall mean any agreement for the investment ofmoneys in the guarantee trust fund whether at fixed or variableinterest rates, and may include, but not be limited to, repurchaseagreements, notes, uncollateralized time deposits, certificates ofdeposit, and the subordinated securities of the bank, a specialpurpose trust, or a sponsor. The bank may direct the Treasurer todeposit moneys in interest-bearing accounts in state or nationalbanks or other financial institutions having principal offices inthis state. (b) In furtherance of Section 51373 of the Health and Safety Code,and to the extent permitted by law, the bank may also invest moneysof the guarantee trust fund in obligations of financial institutionsthat are permitted by board resolution. The bank may alternativelyrequire the transfer of moneys in the guarantee trust fund to theSurplus Money Investment Fund for investment pursuant to Article 4(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4of Title 2. (c) All interest or other increment resulting from the investmentor deposit shall be deposited in the guarantee trust fund,notwithstanding Section 16305.7. (d) The bank may create other accounts within the guarantee trustfund as are necessary or convenient to carry out the purposes of thisarticle.63063.  (a) There is a guarantee reserve account in the guaranteetrust fund to secure commitments under contracts to guarantee all orpart of the bonds of the bank, a special purpose trust, or of asponsor, any contracts or obligations of the bank, a special purposetrust, or of a sponsor, and all or part of the accounts orsubaccounts within the infrastructure bank fund. The bank shall takeall reasonable steps to ensure that the guarantee reserve account iscontinuously maintained at not less than the reserve accountrequirement established pursuant to subdivision (a) of Section 63064.The bank shall pay all of the following into the guarantee reserveaccount: (1) Moneys appropriated and made available by the Legislature fordeposit in the account. (2) Any proceeds of bonds, including general obligation bonds, tothe extent provided in the resolution, trust agreement, resolutionsor trust agreements authorizing the issue thereof. (3) Any other moneys that the bank may make available for thepurpose of deposit to the guarantee reserve account. (b) The bank shall not cause sums to be withdrawn from theguarantee reserve account in amounts that would reduce the moneystherein to less than the reserve account requirement, except asnecessary to satisfy liabilities arising under contracts ofguarantee. In the event that the loan guarantee reserve account isreduced to less than the reserve account requirement, the bank shallcease making commitments for, and contracts of, guarantees andenhancements until the guarantee reserve account has been restored tothat requirement.63064.  (a) The Legislature may from time to time appropriate ortransfer to the guarantee reserve account from funds or accounts thatare legally available, an amount or amounts as the Legislature maydetermine. The Legislature may establish, and from time to timeincrease, for the guarantee reserve account a requirement that shallbe known as the "reserve account requirement." (b) If the bank determines that the amount in the reserve accountis below the reserve account requirement, the executive directorshall immediately certify in writing to the Joint Legislative BudgetCommittee, the Speaker of the Assembly, the Senate Committee onRules, and the Governor, the sum required to restore the reserve fundto the reserve account requirement. (c) Upon making the certification, the chief executive officershall ask the Governor to request an appropriation, and shall use hisor her best efforts to have a sum requested and appropriated. (d) Upon receiving notice that the amount in the reserve accountis below the reserve account requirement, the Legislature may, at itsdiscretion, choose to appropriate and pay to the bank for depositinto the guarantee reserve account that sum that would restore thereserve account to an amount equal to the reserve accountrequirement. (e) The bank may utilize any moneys that may be appropriated tothe guarantee trust fund from time to time by the Legislature foreffectuating its purposes, including, but not limited to, the paymentof the initial expenses of administration and operation and therestoration of the reserve account to the reserve accountrequirement.63065.  (a) The obligation of the bank and of the state to pay anyguarantee benefit pursuant to contracts of guarantee or any othercontracts or obligations of the bank, a special purpose trust, orsponsor shall be a limited obligation of the bank payable solely fromamounts deposited in the guarantee trust fund that are madeavailable therefor under the respective contracts of guarantee. Theguarantee of loans or bonds under this division shall not directly orindirectly or contingently obligate the state or any politicalsubdivision thereof to levy or to pledge any form of taxationwhatever therefor, or to make any appropriation for their payment. (b) All contracts of guarantee or any other contracts orobligations of the bank, special purpose trust, or a sponsor pursuantto this division shall contain on the face thereof a statement tothe following effect: "Neither the faith and credit nor the taxingpower of the State of California is pledged to the payment of theprincipal of or interest on this contract of guarantee." (c) Moneys in the guarantee trust fund may not be transferred toany other fund except for payment on any guarantee or enhancements orexcept as necessary to pay the expenses of operating the program ofbond guarantee and enhancement authorized by this division, nor shallthe bank utilize any moneys under the direction and control of theagency, including, but not limited to, moneys in the CaliforniaHousing Loan Insurance Fund and the California Housing Finance Fund,other than moneys in the guarantee trust fund, to satisfy liabilitiesarising from contracts of guarantee authorized by this division.63066.  The bank may charge and collect insurance guarantee orenhancement premiums or other fees for the insurance guarantees orenhancements described in this chapter and impose other reasonablecharges and fees for services performed in connection with approvaland processing of the guarantees or enhancements, or for poolassembly, loan servicing, or other services the bank may provide to aspecial service trust.63067.  (a) Moneys in the infrastructure bank fund received from theproceeds of bonds issued pursuant to this division may not betransferred to any other fund except as necessary to pay the expensesof operating the program authorized by this division, nor shall thebank utilize any moneys under the direction and control of theagency, including, but not limited to, moneys in the CaliforniaHousing Loan Insurance Fund and the Housing Finance Fund, other thanmoneys in the infrastructure bank fund to satisfy liabilities arisingfrom projects authorized by this division. (b) The infrastructure bank fund, on behalf of the bank or aspecial purpose trust, may borrow or receive moneys from any federal,state, or local agency or private entity, in order to createreserves in the infrastructure bank fund as provided in this divisionand as authorized by resolution of the board.