State Codes and Statutes

Statutes > California > Gov > 92250-92270

GOVERNMENT CODE
SECTION 92250-92270



92250.  The commission may incur indebtedness and issue securities
of any kind or class, and renew them, if all indebtedness is payable
solely from revenues of the commission.



92251.  (a) At times that the commission desires to issue bonds, as
defined in Section 92252, it shall adopt a resolution specifying the
total amount of bonds proposed to be issued.
   (b) The maximum aggregate principal amount of bonds that may be
issued under the authority of this title is one billion two hundred
fifty million dollars ($1,250,000,000) plus the amount of any
indebtedness authorized by Section 92270.
   (c) The limitation in subdivision (b) does not apply to bonds or
other evidence of indebtedness, including bond anticipation notes and
commercial paper, issued to refund bonds, bond anticipation notes,
or commercial paper.



92252.  The commission may, from time to time, issue its negotiable
bonds, notes, debentures, or other securities, collectively called
"bonds" for any corporate purpose.
   The bonds may be authorized, without limiting the generality of
the foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.


92253.  In anticipation of the sale of the bonds as authorized by
Section 92250, or as may be authorized pursuant to Section 92251, the
commission may issue, may renew from time to time, negotiable bond
anticipation notes or commercial paper. The bond anticipation notes
and commercial paper may be paid from the proceeds of sale of the
bonds of the commission in anticipation of which they were issued.
   Notes and agreements relating thereto and bond anticipation notes
and commercial paper, collectively called "notes," and the resolution
authorizing the notes or commercial paper, may contain any
provisions, conditions, or limitations which a bond, an agreement
relating thereto, and a bond resolution of the commission may
contain, except that the notes and commercial paper, and renewals
thereof, shall mature at a time not exceeding three years from the
date of issue of the original notes or commercial paper.



92254.  Except as may be otherwise expressly provided by the
commission, every issue of its bonds, notes, or other obligation
shall be general obligations of the commission payable from any
revenues or money of the commission available therefor and not
otherwise pledged, subject only to any agreement with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or money and subject to any agreement with any
participating party.
   Notwithstanding that the bonds, notes, or other obligations may be
payable from a special fund, they shall be, and be deemed to be, for
all purposes negotiable instruments, subject only to the provisions
of the bonds, notes, or other obligations for registration.




92255.  (a) The bonds may be issued as serial bonds or as term
bonds, or the commission, in its discretion, may issue bonds of both
types.
   (b) The bonds shall be authorized by resolution of the commission
and shall bear the date or dates, mature at the time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in the
denominations, be in the form, either coupon or registered, carry the
registration privileges, be executed in the manner, be payable in
lawful money of the United States of America at the place or places,
and be subject to the terms of redemption, as the resolution or
resolutions may provide.
   (c) The bonds or notes shall be sold by the Treasurer within 60
days of receipt of a certified copy of the commission's resolution
authorizing the sale of the bonds, except that the commission, at its
discretion, may adopt a resolution extending the 60-day period. The
sales may be at public or private sale, and for the price or prices
and on the terms and conditions, as the commission shall determine
after giving due consideration to the recommendations of any
participating party to be assisted from the proceeds of the bonds or
notes.
   (d) Pending preparation of the definitive bonds, the Treasurer may
issue interim receipts, certificates, or temporary bonds which shall
be exchanged for the definitive bonds. The Treasurer may sell any
bonds, notes, or other evidence of indebtedness at a price or prices
below the par value thereof without any limitation on price or
prices.


92256.  Any resolution or resolutions authorizing any bonds, or any
issue of bonds, may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to the
following:
   (a) Pledging the full faith and credit of the commission or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the commission with
any individual, partnership, corporation, or association or other
body, public or private, or other money of the commission, to secure
the payment of the bonds or of any particular issue of bonds, subject
to any agreement with bondholders that may then exist.
   (b) The rentals, fees, purchase payments, and other charges to be
charged, and the amounts to be raised in each year thereby, and the
use and disposition of the revenues.
   (c) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
   (d) Limitations on the right of the commission or its agent to
regulate the use of the project or projects to be financed out of the
proceeds of the bonds or any particular issue of bonds.
   (e) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
   (f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
   (g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds that
the holders who are required to consent thereto, and the manner in
which the consent may be given.
   (h) Limitations on expenditures for operating, administrative, or
other expenses of the commission.
   (i) Defining the acts or omissions to act which constitute a
default in the duties of the commission to holders of its
obligations, and providing the rights and remedies of the holders in
the event of a default.
   (j) The mortgaging of any project, or any part thereof, for the
purpose of securing the bondholders.
   (k) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
   (l) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects, and
participating parties to receive the financing.




92257.  Neither the members of the commission, nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes, or be subject to any personal liablility or accountability
by reason of the issuance thereof.


92258.  The commission may, from any funds available therefor,
purchase its bonds or notes. The commission may hold, pledge, cancel,
or resell the bonds, subject to and in accordance with agreements
with the bondholders.


92259.  (a) All bonds, notes, and commercial paper issued by the
commission under this chapter shall be issued only after a public
hearing on the issuance thereof has been held at the offices of the
commission in Sacramento, California, not less than 14 days following
the date of publication of a notice of the hearing in a financial
publication generally circulated throughout the state and in a
newspaper of general circulation published within each county in
which is located any portion of the project to be financed with the
bonds, notes or commercial paper.
   (b) The notice shall include the date, time and place of the
hearing, the principal amount of bonds, notes, or commercial paper
which may be issued, and a brief description of the project to be
financed with the proceeds thereof, including its location and
routing.
   (c) In addition, no bonds, notes, or commercial paper shall be
issued by the commission, unless approved for issuance following the
hearing by a majority of the commission and by the Treasurer.
   (d) Any or all of the requirements of this section may be waived
by the commission, upon the request of a participating party, if the
requirement to be waived is not necessary to qualify interest on the
bonds, notes, or commercial paper for exemption from federal income
taxes.



92260.  (a) At the discretion of the commission, any bonds issued
under this title may be secured by a trust agreement by and between
the commission and a trustee or trustees, which may be any trust
company or bank having the powers of a trust company within or
without the state.



92261.  (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may
convey or mortgage the project or projects, or any portion thereof,
to be financed out of the proceeds of the bonds. The trust agreement
or resolution providing for the issuance of the bonds may contain
provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation
of law, including particularly provisions specifically authorized to
be included in any resolution of the commission authorizing bonds
thereof.
   (b) Any bank or trust company doing business under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues or other moneys may furnish indemnifying bonds or pledge
securities as may be required by the commission.
   (c) Any trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the
commission may deem reasonable and proper for the security of the
bondholders.


92262.  Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this title.



92263.  All expenses incurred in carrying out the provisions of the
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.



92264.  Bonds issued under this title shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the commission, or a pledge of the
faith and credit of the state or of any such political subdivision,
other than the commission, but shall be payable solely from the funds
herein provided therefor. All the bonds shall contain on the face
thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California or any local agency is pledged to the payment of the
principal of or interest on this bond."
   The issuance of bonds under this title shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy, or to pledge any form of, taxation
therefor or to make any appropriation for their payment.
   Nothing in this section shall prevent, or be construed to prevent,
the commission from pledging its full faith and credit to the
payment of bonds or issue of bonds authorized pursuant to this title.




92265.  (a) The commission may provide for the issuance of bonds of
the commission for the purpose of refunding any bond, notes, or other
securities of the commission then outstanding, including the payment
of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of the bonds and, if deemed advisable by the commission,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion thereof.



92266.  (a) The proceeds of any bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the commission, be applied to the purchase or
retirement at maturity or redemption of outstanding bonds either on
their earliest or any subsequent redemption date or upon the purchase
or retirement at the maturity thereof and may, pending such
application, be placed in escrow to be applied to the purchase or
retirement at maturity or redemption on the date as may be determined
by the commission.
   (b) Pending that use, the escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at time or times appropriate to assure
the prompt payment, as to principal, interest, and redemption
premium, if any, of the outstanding bonds to be so refunded. The
interest, income, and profits, if any, earned or realized on the
investment may also be applied to the payment of the outstanding
bonds to be so refunded. After the terms of the escrow have been
fully satisfied and carried out, any balance of the proceeds and
interest, income, and profits, if any, earned or realized on the
investments thereof may be returned to the commission for use by it
in any lawful manner.


92267.  The proceeds of any bonds issued for the additional purpose
of paying all or any part of the cost of constructing and acquiring
additions, improvements, extensions, or enlargements of a project may
be invested and reinvested by the Treasurer in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing not later than the time or
times when the proceeds will be needed for the purpose of paying all
or any part of the cost. The interest, income, and profits, if any,
earned or realized on the investment may be applied to the payment of
all or any part of the cost or may be used by the commission in any
lawful manner.



92268.  Bonds issued pursuant to Section 92265 are subject to this
title in the same manner and to the same extent as other bonds issued
pursuant to this title.



92269.  If, in the opinion of the Treasurer, any bonds issued by the
commission under this title are adequately secured and the revenues
and other funds applicable to the payments of the bonds are, or upon
the acquisition, construction, or improvement of the project or
projects which the bonds finance, will be sufficient to pay the
principal of and interest on the bonds, the Treasurer shall certify
that the bonds are legal investments for all trust funds, the funds
of all insurance companies, banks (both commercial and savings),
trust companies, savings and loan associations, and investment
companies, for executors, administrators, guardians, conservators,
trustees, and other fiduciaries, for state school funds, and for any
funds which may be invested in county, municipal, or school district
bonds, and that the bonds are securities which may properly and
legally be deposited with, and received by, any state or municipal
officer or any agency or political subdivision of the state for any
purpose for which the deposit of bonds or obligations of the state is
now, or may hereafter be, authorized by law, including deposits to
secure public funds.



92270.  No liability shall be incurred by the commission in excess
of the amount of money which has been provided under this title,
except that, for the purposes of meeting the necessary expenses of
initial organization and operation until such date that the
commission derives revenues or proceeds from bonds or notes as
provided under this title, the commission may borrow money as needed
for those expenses from private sources.
   The borrowed money shall be repaid with interest within a
reasonable time after the commission receives revenues or proceeds
from bonds or notes as provided under this title.


State Codes and Statutes

Statutes > California > Gov > 92250-92270

GOVERNMENT CODE
SECTION 92250-92270



92250.  The commission may incur indebtedness and issue securities
of any kind or class, and renew them, if all indebtedness is payable
solely from revenues of the commission.



92251.  (a) At times that the commission desires to issue bonds, as
defined in Section 92252, it shall adopt a resolution specifying the
total amount of bonds proposed to be issued.
   (b) The maximum aggregate principal amount of bonds that may be
issued under the authority of this title is one billion two hundred
fifty million dollars ($1,250,000,000) plus the amount of any
indebtedness authorized by Section 92270.
   (c) The limitation in subdivision (b) does not apply to bonds or
other evidence of indebtedness, including bond anticipation notes and
commercial paper, issued to refund bonds, bond anticipation notes,
or commercial paper.



92252.  The commission may, from time to time, issue its negotiable
bonds, notes, debentures, or other securities, collectively called
"bonds" for any corporate purpose.
   The bonds may be authorized, without limiting the generality of
the foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.


92253.  In anticipation of the sale of the bonds as authorized by
Section 92250, or as may be authorized pursuant to Section 92251, the
commission may issue, may renew from time to time, negotiable bond
anticipation notes or commercial paper. The bond anticipation notes
and commercial paper may be paid from the proceeds of sale of the
bonds of the commission in anticipation of which they were issued.
   Notes and agreements relating thereto and bond anticipation notes
and commercial paper, collectively called "notes," and the resolution
authorizing the notes or commercial paper, may contain any
provisions, conditions, or limitations which a bond, an agreement
relating thereto, and a bond resolution of the commission may
contain, except that the notes and commercial paper, and renewals
thereof, shall mature at a time not exceeding three years from the
date of issue of the original notes or commercial paper.



92254.  Except as may be otherwise expressly provided by the
commission, every issue of its bonds, notes, or other obligation
shall be general obligations of the commission payable from any
revenues or money of the commission available therefor and not
otherwise pledged, subject only to any agreement with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or money and subject to any agreement with any
participating party.
   Notwithstanding that the bonds, notes, or other obligations may be
payable from a special fund, they shall be, and be deemed to be, for
all purposes negotiable instruments, subject only to the provisions
of the bonds, notes, or other obligations for registration.




92255.  (a) The bonds may be issued as serial bonds or as term
bonds, or the commission, in its discretion, may issue bonds of both
types.
   (b) The bonds shall be authorized by resolution of the commission
and shall bear the date or dates, mature at the time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in the
denominations, be in the form, either coupon or registered, carry the
registration privileges, be executed in the manner, be payable in
lawful money of the United States of America at the place or places,
and be subject to the terms of redemption, as the resolution or
resolutions may provide.
   (c) The bonds or notes shall be sold by the Treasurer within 60
days of receipt of a certified copy of the commission's resolution
authorizing the sale of the bonds, except that the commission, at its
discretion, may adopt a resolution extending the 60-day period. The
sales may be at public or private sale, and for the price or prices
and on the terms and conditions, as the commission shall determine
after giving due consideration to the recommendations of any
participating party to be assisted from the proceeds of the bonds or
notes.
   (d) Pending preparation of the definitive bonds, the Treasurer may
issue interim receipts, certificates, or temporary bonds which shall
be exchanged for the definitive bonds. The Treasurer may sell any
bonds, notes, or other evidence of indebtedness at a price or prices
below the par value thereof without any limitation on price or
prices.


92256.  Any resolution or resolutions authorizing any bonds, or any
issue of bonds, may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to the
following:
   (a) Pledging the full faith and credit of the commission or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the commission with
any individual, partnership, corporation, or association or other
body, public or private, or other money of the commission, to secure
the payment of the bonds or of any particular issue of bonds, subject
to any agreement with bondholders that may then exist.
   (b) The rentals, fees, purchase payments, and other charges to be
charged, and the amounts to be raised in each year thereby, and the
use and disposition of the revenues.
   (c) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
   (d) Limitations on the right of the commission or its agent to
regulate the use of the project or projects to be financed out of the
proceeds of the bonds or any particular issue of bonds.
   (e) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
   (f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
   (g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds that
the holders who are required to consent thereto, and the manner in
which the consent may be given.
   (h) Limitations on expenditures for operating, administrative, or
other expenses of the commission.
   (i) Defining the acts or omissions to act which constitute a
default in the duties of the commission to holders of its
obligations, and providing the rights and remedies of the holders in
the event of a default.
   (j) The mortgaging of any project, or any part thereof, for the
purpose of securing the bondholders.
   (k) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
   (l) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects, and
participating parties to receive the financing.




92257.  Neither the members of the commission, nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes, or be subject to any personal liablility or accountability
by reason of the issuance thereof.


92258.  The commission may, from any funds available therefor,
purchase its bonds or notes. The commission may hold, pledge, cancel,
or resell the bonds, subject to and in accordance with agreements
with the bondholders.


92259.  (a) All bonds, notes, and commercial paper issued by the
commission under this chapter shall be issued only after a public
hearing on the issuance thereof has been held at the offices of the
commission in Sacramento, California, not less than 14 days following
the date of publication of a notice of the hearing in a financial
publication generally circulated throughout the state and in a
newspaper of general circulation published within each county in
which is located any portion of the project to be financed with the
bonds, notes or commercial paper.
   (b) The notice shall include the date, time and place of the
hearing, the principal amount of bonds, notes, or commercial paper
which may be issued, and a brief description of the project to be
financed with the proceeds thereof, including its location and
routing.
   (c) In addition, no bonds, notes, or commercial paper shall be
issued by the commission, unless approved for issuance following the
hearing by a majority of the commission and by the Treasurer.
   (d) Any or all of the requirements of this section may be waived
by the commission, upon the request of a participating party, if the
requirement to be waived is not necessary to qualify interest on the
bonds, notes, or commercial paper for exemption from federal income
taxes.



92260.  (a) At the discretion of the commission, any bonds issued
under this title may be secured by a trust agreement by and between
the commission and a trustee or trustees, which may be any trust
company or bank having the powers of a trust company within or
without the state.



92261.  (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may
convey or mortgage the project or projects, or any portion thereof,
to be financed out of the proceeds of the bonds. The trust agreement
or resolution providing for the issuance of the bonds may contain
provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation
of law, including particularly provisions specifically authorized to
be included in any resolution of the commission authorizing bonds
thereof.
   (b) Any bank or trust company doing business under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues or other moneys may furnish indemnifying bonds or pledge
securities as may be required by the commission.
   (c) Any trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the
commission may deem reasonable and proper for the security of the
bondholders.


92262.  Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this title.



92263.  All expenses incurred in carrying out the provisions of the
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.



92264.  Bonds issued under this title shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the commission, or a pledge of the
faith and credit of the state or of any such political subdivision,
other than the commission, but shall be payable solely from the funds
herein provided therefor. All the bonds shall contain on the face
thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California or any local agency is pledged to the payment of the
principal of or interest on this bond."
   The issuance of bonds under this title shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy, or to pledge any form of, taxation
therefor or to make any appropriation for their payment.
   Nothing in this section shall prevent, or be construed to prevent,
the commission from pledging its full faith and credit to the
payment of bonds or issue of bonds authorized pursuant to this title.




92265.  (a) The commission may provide for the issuance of bonds of
the commission for the purpose of refunding any bond, notes, or other
securities of the commission then outstanding, including the payment
of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of the bonds and, if deemed advisable by the commission,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion thereof.



92266.  (a) The proceeds of any bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the commission, be applied to the purchase or
retirement at maturity or redemption of outstanding bonds either on
their earliest or any subsequent redemption date or upon the purchase
or retirement at the maturity thereof and may, pending such
application, be placed in escrow to be applied to the purchase or
retirement at maturity or redemption on the date as may be determined
by the commission.
   (b) Pending that use, the escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at time or times appropriate to assure
the prompt payment, as to principal, interest, and redemption
premium, if any, of the outstanding bonds to be so refunded. The
interest, income, and profits, if any, earned or realized on the
investment may also be applied to the payment of the outstanding
bonds to be so refunded. After the terms of the escrow have been
fully satisfied and carried out, any balance of the proceeds and
interest, income, and profits, if any, earned or realized on the
investments thereof may be returned to the commission for use by it
in any lawful manner.


92267.  The proceeds of any bonds issued for the additional purpose
of paying all or any part of the cost of constructing and acquiring
additions, improvements, extensions, or enlargements of a project may
be invested and reinvested by the Treasurer in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing not later than the time or
times when the proceeds will be needed for the purpose of paying all
or any part of the cost. The interest, income, and profits, if any,
earned or realized on the investment may be applied to the payment of
all or any part of the cost or may be used by the commission in any
lawful manner.



92268.  Bonds issued pursuant to Section 92265 are subject to this
title in the same manner and to the same extent as other bonds issued
pursuant to this title.



92269.  If, in the opinion of the Treasurer, any bonds issued by the
commission under this title are adequately secured and the revenues
and other funds applicable to the payments of the bonds are, or upon
the acquisition, construction, or improvement of the project or
projects which the bonds finance, will be sufficient to pay the
principal of and interest on the bonds, the Treasurer shall certify
that the bonds are legal investments for all trust funds, the funds
of all insurance companies, banks (both commercial and savings),
trust companies, savings and loan associations, and investment
companies, for executors, administrators, guardians, conservators,
trustees, and other fiduciaries, for state school funds, and for any
funds which may be invested in county, municipal, or school district
bonds, and that the bonds are securities which may properly and
legally be deposited with, and received by, any state or municipal
officer or any agency or political subdivision of the state for any
purpose for which the deposit of bonds or obligations of the state is
now, or may hereafter be, authorized by law, including deposits to
secure public funds.



92270.  No liability shall be incurred by the commission in excess
of the amount of money which has been provided under this title,
except that, for the purposes of meeting the necessary expenses of
initial organization and operation until such date that the
commission derives revenues or proceeds from bonds or notes as
provided under this title, the commission may borrow money as needed
for those expenses from private sources.
   The borrowed money shall be repaid with interest within a
reasonable time after the commission receives revenues or proceeds
from bonds or notes as provided under this title.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 92250-92270

GOVERNMENT CODE
SECTION 92250-92270



92250.  The commission may incur indebtedness and issue securities
of any kind or class, and renew them, if all indebtedness is payable
solely from revenues of the commission.



92251.  (a) At times that the commission desires to issue bonds, as
defined in Section 92252, it shall adopt a resolution specifying the
total amount of bonds proposed to be issued.
   (b) The maximum aggregate principal amount of bonds that may be
issued under the authority of this title is one billion two hundred
fifty million dollars ($1,250,000,000) plus the amount of any
indebtedness authorized by Section 92270.
   (c) The limitation in subdivision (b) does not apply to bonds or
other evidence of indebtedness, including bond anticipation notes and
commercial paper, issued to refund bonds, bond anticipation notes,
or commercial paper.



92252.  The commission may, from time to time, issue its negotiable
bonds, notes, debentures, or other securities, collectively called
"bonds" for any corporate purpose.
   The bonds may be authorized, without limiting the generality of
the foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.


92253.  In anticipation of the sale of the bonds as authorized by
Section 92250, or as may be authorized pursuant to Section 92251, the
commission may issue, may renew from time to time, negotiable bond
anticipation notes or commercial paper. The bond anticipation notes
and commercial paper may be paid from the proceeds of sale of the
bonds of the commission in anticipation of which they were issued.
   Notes and agreements relating thereto and bond anticipation notes
and commercial paper, collectively called "notes," and the resolution
authorizing the notes or commercial paper, may contain any
provisions, conditions, or limitations which a bond, an agreement
relating thereto, and a bond resolution of the commission may
contain, except that the notes and commercial paper, and renewals
thereof, shall mature at a time not exceeding three years from the
date of issue of the original notes or commercial paper.



92254.  Except as may be otherwise expressly provided by the
commission, every issue of its bonds, notes, or other obligation
shall be general obligations of the commission payable from any
revenues or money of the commission available therefor and not
otherwise pledged, subject only to any agreement with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or money and subject to any agreement with any
participating party.
   Notwithstanding that the bonds, notes, or other obligations may be
payable from a special fund, they shall be, and be deemed to be, for
all purposes negotiable instruments, subject only to the provisions
of the bonds, notes, or other obligations for registration.




92255.  (a) The bonds may be issued as serial bonds or as term
bonds, or the commission, in its discretion, may issue bonds of both
types.
   (b) The bonds shall be authorized by resolution of the commission
and shall bear the date or dates, mature at the time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in the
denominations, be in the form, either coupon or registered, carry the
registration privileges, be executed in the manner, be payable in
lawful money of the United States of America at the place or places,
and be subject to the terms of redemption, as the resolution or
resolutions may provide.
   (c) The bonds or notes shall be sold by the Treasurer within 60
days of receipt of a certified copy of the commission's resolution
authorizing the sale of the bonds, except that the commission, at its
discretion, may adopt a resolution extending the 60-day period. The
sales may be at public or private sale, and for the price or prices
and on the terms and conditions, as the commission shall determine
after giving due consideration to the recommendations of any
participating party to be assisted from the proceeds of the bonds or
notes.
   (d) Pending preparation of the definitive bonds, the Treasurer may
issue interim receipts, certificates, or temporary bonds which shall
be exchanged for the definitive bonds. The Treasurer may sell any
bonds, notes, or other evidence of indebtedness at a price or prices
below the par value thereof without any limitation on price or
prices.


92256.  Any resolution or resolutions authorizing any bonds, or any
issue of bonds, may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to the
following:
   (a) Pledging the full faith and credit of the commission or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the commission with
any individual, partnership, corporation, or association or other
body, public or private, or other money of the commission, to secure
the payment of the bonds or of any particular issue of bonds, subject
to any agreement with bondholders that may then exist.
   (b) The rentals, fees, purchase payments, and other charges to be
charged, and the amounts to be raised in each year thereby, and the
use and disposition of the revenues.
   (c) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
   (d) Limitations on the right of the commission or its agent to
regulate the use of the project or projects to be financed out of the
proceeds of the bonds or any particular issue of bonds.
   (e) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
   (f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
   (g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds that
the holders who are required to consent thereto, and the manner in
which the consent may be given.
   (h) Limitations on expenditures for operating, administrative, or
other expenses of the commission.
   (i) Defining the acts or omissions to act which constitute a
default in the duties of the commission to holders of its
obligations, and providing the rights and remedies of the holders in
the event of a default.
   (j) The mortgaging of any project, or any part thereof, for the
purpose of securing the bondholders.
   (k) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
   (l) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects, and
participating parties to receive the financing.




92257.  Neither the members of the commission, nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes, or be subject to any personal liablility or accountability
by reason of the issuance thereof.


92258.  The commission may, from any funds available therefor,
purchase its bonds or notes. The commission may hold, pledge, cancel,
or resell the bonds, subject to and in accordance with agreements
with the bondholders.


92259.  (a) All bonds, notes, and commercial paper issued by the
commission under this chapter shall be issued only after a public
hearing on the issuance thereof has been held at the offices of the
commission in Sacramento, California, not less than 14 days following
the date of publication of a notice of the hearing in a financial
publication generally circulated throughout the state and in a
newspaper of general circulation published within each county in
which is located any portion of the project to be financed with the
bonds, notes or commercial paper.
   (b) The notice shall include the date, time and place of the
hearing, the principal amount of bonds, notes, or commercial paper
which may be issued, and a brief description of the project to be
financed with the proceeds thereof, including its location and
routing.
   (c) In addition, no bonds, notes, or commercial paper shall be
issued by the commission, unless approved for issuance following the
hearing by a majority of the commission and by the Treasurer.
   (d) Any or all of the requirements of this section may be waived
by the commission, upon the request of a participating party, if the
requirement to be waived is not necessary to qualify interest on the
bonds, notes, or commercial paper for exemption from federal income
taxes.



92260.  (a) At the discretion of the commission, any bonds issued
under this title may be secured by a trust agreement by and between
the commission and a trustee or trustees, which may be any trust
company or bank having the powers of a trust company within or
without the state.



92261.  (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may
convey or mortgage the project or projects, or any portion thereof,
to be financed out of the proceeds of the bonds. The trust agreement
or resolution providing for the issuance of the bonds may contain
provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation
of law, including particularly provisions specifically authorized to
be included in any resolution of the commission authorizing bonds
thereof.
   (b) Any bank or trust company doing business under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues or other moneys may furnish indemnifying bonds or pledge
securities as may be required by the commission.
   (c) Any trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the
commission may deem reasonable and proper for the security of the
bondholders.


92262.  Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this title.



92263.  All expenses incurred in carrying out the provisions of the
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.



92264.  Bonds issued under this title shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision thereof, other than the commission, or a pledge of the
faith and credit of the state or of any such political subdivision,
other than the commission, but shall be payable solely from the funds
herein provided therefor. All the bonds shall contain on the face
thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California or any local agency is pledged to the payment of the
principal of or interest on this bond."
   The issuance of bonds under this title shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy, or to pledge any form of, taxation
therefor or to make any appropriation for their payment.
   Nothing in this section shall prevent, or be construed to prevent,
the commission from pledging its full faith and credit to the
payment of bonds or issue of bonds authorized pursuant to this title.




92265.  (a) The commission may provide for the issuance of bonds of
the commission for the purpose of refunding any bond, notes, or other
securities of the commission then outstanding, including the payment
of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of the bonds and, if deemed advisable by the commission,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion thereof.



92266.  (a) The proceeds of any bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the commission, be applied to the purchase or
retirement at maturity or redemption of outstanding bonds either on
their earliest or any subsequent redemption date or upon the purchase
or retirement at the maturity thereof and may, pending such
application, be placed in escrow to be applied to the purchase or
retirement at maturity or redemption on the date as may be determined
by the commission.
   (b) Pending that use, the escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at time or times appropriate to assure
the prompt payment, as to principal, interest, and redemption
premium, if any, of the outstanding bonds to be so refunded. The
interest, income, and profits, if any, earned or realized on the
investment may also be applied to the payment of the outstanding
bonds to be so refunded. After the terms of the escrow have been
fully satisfied and carried out, any balance of the proceeds and
interest, income, and profits, if any, earned or realized on the
investments thereof may be returned to the commission for use by it
in any lawful manner.


92267.  The proceeds of any bonds issued for the additional purpose
of paying all or any part of the cost of constructing and acquiring
additions, improvements, extensions, or enlargements of a project may
be invested and reinvested by the Treasurer in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing not later than the time or
times when the proceeds will be needed for the purpose of paying all
or any part of the cost. The interest, income, and profits, if any,
earned or realized on the investment may be applied to the payment of
all or any part of the cost or may be used by the commission in any
lawful manner.



92268.  Bonds issued pursuant to Section 92265 are subject to this
title in the same manner and to the same extent as other bonds issued
pursuant to this title.



92269.  If, in the opinion of the Treasurer, any bonds issued by the
commission under this title are adequately secured and the revenues
and other funds applicable to the payments of the bonds are, or upon
the acquisition, construction, or improvement of the project or
projects which the bonds finance, will be sufficient to pay the
principal of and interest on the bonds, the Treasurer shall certify
that the bonds are legal investments for all trust funds, the funds
of all insurance companies, banks (both commercial and savings),
trust companies, savings and loan associations, and investment
companies, for executors, administrators, guardians, conservators,
trustees, and other fiduciaries, for state school funds, and for any
funds which may be invested in county, municipal, or school district
bonds, and that the bonds are securities which may properly and
legally be deposited with, and received by, any state or municipal
officer or any agency or political subdivision of the state for any
purpose for which the deposit of bonds or obligations of the state is
now, or may hereafter be, authorized by law, including deposits to
secure public funds.



92270.  No liability shall be incurred by the commission in excess
of the amount of money which has been provided under this title,
except that, for the purposes of meeting the necessary expenses of
initial organization and operation until such date that the
commission derives revenues or proceeds from bonds or notes as
provided under this title, the commission may borrow money as needed
for those expenses from private sources.
   The borrowed money shall be repaid with interest within a
reasonable time after the commission receives revenues or proceeds
from bonds or notes as provided under this title.