SECTIONS 44540-44549

44540.  The authority is authorized to incur indebtedness and toissue securities of any kind or class, and to renew the same,provided that all such indebtedness, howsoever evidenced, shall bepayable solely from revenues of the authority.44541.  At such times as the authority desires to issue bonds, asdefined in Section 44542, it shall adopt a resolution specifying thetotal amount of such bonds proposed to be issued.44542.  (a) (1) The authority is authorized from time to time toissue its negotiable bonds, notes, debentures, or other securities(hereinafter collectively called "bonds") for any corporate purpose.These bonds may be authorized, without limiting the generality of theforegoing, to finance a single project for a single participatingparty, a series of projects for a single participating party, asingle project for several participating parties, or several projectsfor several participating parties. (2) In anticipation of the sale of the bonds as authorized bySection 44540, or as may be authorized pursuant to Section 44541, theauthority may issue negotiable bond anticipation notes and may renewthe same from time to time. These bond anticipation notes may bepaid from the proceeds of sale of the bonds of the authority inanticipation of which they were issued. Notes and agreements relatingthereto and bond anticipation notes, hereinafter collectively callednotes, and the resolution or resolutions authorizing the same maycontain any provisions, conditions, or limitations that a bond,agreement relating thereto, and bond resolution of the authority maycontain, except that the note or renewal thereof shall mature at atime not exceeding three years from the date of issue of the originalnote. (b) Except as may otherwise be expressly provided by theauthority, every issue of its bonds, notes, or other obligation shallbe general obligations of the authority payable from any revenues ormoneys of the authority available therefor and not otherwisepledged, subject only to any agreements with the holders ofparticular bonds, notes, or other obligations pledging any particularrevenues or moneys and subject to any agreements with anyparticipating party. Notwithstanding that bonds, notes, or otherobligations may be payable from a special fund, they shall be and bedeemed to be for all purposes negotiable instruments, subject only tothe provisions of the bonds, notes, or other obligations forregistration. (c) The bonds may be issued as serial bonds or as term bonds, orthe authority in its discretion, may issue bonds of both types. Thebonds shall be authorized by resolution of the authority and shallbear the date or dates, mature at the time or times, not exceeding 50years from their respective dates, bear interest at the fixed rateor rates, or at the variable rates, including multiple methods ofsetting rates from time to time while the bonds are outstanding, bepayable at the time or times, be in the denominations, be executed inthe manner, be payable in lawful money of the United States ofAmerica at the place or places, and be subject to the terms ofredemption or tender, as resolution or resolutions may provide. Thebonds or notes shall be sold by the Treasurer as agent for sale. Thebond or notes may be sold at a public or private sale, and for theprice or prices and on terms and conditions, as the authority shalldetermine after giving due consideration to the recommendations ofany participating party to be assisted from the proceeds of the bondsor notes. Pending preparation of the definitive bonds, the Treasurermay issue interim receipts, certificates, or temporary bonds whichshall be exchanged for definitive bonds. The Treasurer may sell anybonds, notes, or other evidence of indebtedness at a price below thepar value thereof. (d) Any resolution or resolutions authorizing any bonds or anyissue of bonds may contain provisions, which shall be a part of thecontract with the holders of the bonds or any provider of creditenhancement to be authorized, as to all of the following: (1) Pledging the full faith and credit of the authority orpledging all or any part of the revenues of any project or anyrevenue-producing contract or contracts made by the authority withany individual, partnership, corporation, or association or otherbody, public or private, or other moneys of the authority, to securethe payment of the bonds or of any particular issue of bonds, subjectto agreements with bondholders or any providers of creditenhancement as may then exist. (2) The rentals, fees, purchase payments, loan payments, and othercharges to be charged, and the amounts to be raised in each yearthereby, and the use and disposition of the revenues. (3) The setting aside of reserves or sinking funds, and theregulation and disposition thereof. (4) Limitations on the right of the authority or its agent torestrict and regulate the use of the project or projects to befinanced out of the proceeds of the bonds or any particular issue ofbonds. (5) Limitations on the purpose to which the proceeds of sale ofany issue of bonds then or thereafter to be issued may be applied andpledging these proceeds to secure the payment of the bonds or anyissue of the bonds. (6) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured and therefunding of outstanding bonds. (7) The procedure, if any, by which the terms of any contract withbondholders may be amended or abrogated, the amount of bonds theholders of which must consent thereto, and the manner in whichconsent may be given. (8) Limitations on expenditures for operating, administrative, orother expenses of the authority. (9) Defining the acts or omissions to act that constitute adefault in the duties of the authority to holders of its obligationsand providing the rights and remedies of these holders in the eventof a default. (10) The mortgaging of any project and the site thereof for thepurpose of securing the bondholders. (11) The mortgaging of land, improvements, or other assets ownedby a participating party for the purpose of securing the bondholders. (12) Provisions for the security of any provider of creditenhancement supporting payment on the bonds, but only in a mannersubordinate to the rights of bondholders. (e) Neither the members of the authority nor any person executingthe bonds or notes shall be liable personally on the bonds or notesor be subject to any personal liability or accountability by reasonof the issuance thereof. (f) The authority shall have power out of any funds availabletherefor to purchase its bonds or notes without the cancellationthereof. The authority may hold, pledge, cancel, or resell bonds,subject to, and in accordance with, agreements with bondholders.44543.  (a) In the discretion of the authority, any bonds issuedunder the provisions of this division may be secured by a trustagreement by and between the authority and a trustee or trustees,which may be any trust company or bank having the powers of a trustcompany within or without the state. The trust agreement or theresolution providing for the issuance of bonds may pledge or assignthe revenues to be received or proceeds of any contract or contractspledged and may convey or mortgage the project or projects, or anyportion thereof, to be financed out of the proceeds of bonds. Thetrust agreement or resolution providing for the issuance of bonds maycontain provisions for protecting and enforcing the rights andremedies of the bondholders, or any provider of credit enhancement,as may be reasonable and proper and not in violation of law,including particular provisions as have hereinabove been specificallyauthorized to be included in any resolution or resolutions of theauthority authorizing bonds thereof. Any bank or trust company doingbusiness under the laws of this state that may act as depository ofthe proceeds of bonds or of revenues or other moneys may furnishthese indemnifying bonds or pledge securities as may be required bythe authority. Any trust agreement may set forth the rights andremedies of the bondholders and of the trustee or trustees, and mayrestrict the individual right of action by bondholders or anyprovider of credit enhancement. In addition to the foregoing, anytrust agreement or resolution may contain other provisions as theauthority may deem reasonable and proper for the security of thebondholders. Notwithstanding any other law, the Treasurer shall notbe deemed to have a conflict of interest by reason of acting astrustee pursuant to this division. (b) All expenses incurred in carrying out the provisions of atrust agreement or resolution may be treated as a part of the cost ofthe operation of a project.44544.  Bonds issued under the provisions of this division shall notbe deemed to constitute a debt or liability of the state or of anypolitical subdivision thereof, other than the authority, or a pledgeof the faith and credit of the state or of any such politicalsubdivision, other than the authority, but shall be payable solelyfrom the funds herein provided therefor. All such bonds shall containon the face thereof a statement to the following effect: "Neither the faith and credit nor the taxing power of the Stateof California or any local agency is pledged to the payment of theprincipal of or interest on this bond." The issuance of bonds under the provisions of this division shallnot directly or indirectly or contingently obligate the state or anypolitical subdivision thereof to levy or to pledge any form oftaxation whatever therefor or to make any appropriation for theirpayment. Nothing in this section contained shall prevent nor beconstrued to prevent the authority from pledging its full faith andcredit to the payment of bonds or issue of bonds authorized pursuantto this division.44545.  (a) The authority may provide for the issuance of bonds ofthe authority for the purpose of refunding, directly or indirectly,any bonds, notes, or other evidences of indebtedness of the authorityor a public agency then outstanding, including the payment of anyredemption premium thereon and any interest accrued or to accrue tothe earliest or subsequent date of redemption, purchase, or maturityof these bonds, and, if deemed advisable by the authority, for theadditional purpose of paying all or any part of the cost ofconstructing and acquiring additions, improvements, extensions, orenlargements of a project or any portion thereof. (b) The proceeds of any bonds issued for the purpose of refundingoutstanding bonds, notes, or other securities may, in the discretionof the authority, be applied to the purchase or retirement atmaturity or redemption of outstanding bonds either on their earliestor any subsequent redemption date or upon the purchase or retirementat the maturity thereof and may, pending application, be placed inescrow to be applied to purchase or retirement at maturity orredemption on a date as may be determined by the authority. (c) Pending this use, any of these escrowed proceeds may beinvested and reinvested by the Treasurer or any trustee ininstruments as may be specified in the resolution or indenturegoverning the bonds to be refunded, maturing at the time or times asshall be appropriate to ensure the prompt payment, as to principal,interest and redemption premium, if any, of the outstanding bonds tobe so refunded. The interest, income, and profits, if any, earned orrealized on this type of investment may also be applied to thepayment of the outstanding bonds to be so refunded. After the termsof the escrow have been fully satisfied and carried out, any balanceof these proceeds and interest, income, and profits, if any, earnedor realized on the investments thereof may be returned to theauthority for use by it in any lawful manner. (d) All of these bonds shall be subject to the provisions of thisdivision in the same manner and to the same extent as other bondsissued pursuant to this division. If the authority refunds bonds orevidences of indebtedness not originally issued by the authority, theauthority shall make findings that the project being refinancedqualifies as a project under this division.44548.  (a) (1) Subject to any prior contractual obligations to anyof its bondholders, the authority may establish one or more smallbusiness assistance funds in order to do any of the following: (A) Assist small businesses to achieve financing of pollutioncontrol facilities. (B) Assist with the financing of the costs of, among other things,assessment, remedial planning and reporting, technical assistance,cleanup, remediation, and development of brownfield sites, and withother similar or related costs, by providing loans pursuant tosubdivision (h) of Section 44526. (C) Fund a capital access program for small businesses pursuant toArticle 8 (commencing with Section 44559). (2) For the purpose of establishing and maintaining small businessassistance funds as it determines to be necessary or desirable tosecure its bonds or any issuance thereof or for other authorizedpurposes, the authority, pursuant to its contracts with participatingparties, may levy fees or other charges on, or require depositsfrom, participating parties receiving financing for a project underthis division. The total amount of these fees, charges, and depositswith respect to a single issue of bonds shall not exceed 3 percent ofthe principal amount of that issue of bonds. (3) Prior to levying any fees or charges or requiring deposits,the authority shall adopt regulations for the operation of the smallbusiness assistance funds, the amounts and any payment schedule forthe fees, charges, or deposits, eligibility standards for smallbusinesses desiring to use or benefit from the small businessassistance funds, and any other matters the authority determines tobe necessary for the establishment and maintenance of small businessassistance funds. The regulations may provide for differential feesfrom participating parties based upon the size of a project financedby the authority or other factors determined to be relevant by theauthority, and the regulations may restrict any benefits to thoseeligible small businesses specified in the regulations. (4) The authority may transfer any funds available to it or setaside for its administrative expenses to any small businessassistance fund established under this section. (b) (1) The forms of financial assistance that the authority mayprovide under this section include, but are not limited to all of thefollowing: (A) Payments to reduce, but not eliminate, the interest rate onloans. (B) Payments of part or all of the cost of acquiring letters ofcredit. (C) Payments of part or all of the cost of acquiring insurance. (D) Payments of part or all of the cost of acquiring guarantees. (E) Payments of part or all of the cost of acquiring other formsof credit support. (F) Payments of part or all of the authority's expenses in issuingrevenue bonds or providing other assistance. (2) The authority may also pledge any small business assistancefund, on an individual or pooled basis, to repay, directly orindirectly, the principal of, or interest or premium on, any issue ofbonds of the authority or any loan made or acquired pursuant to thissection. (3) The authority may also use moneys in a small businessassistance fund to assist in the financing of the costs of assessmentof, remedial planning and reporting for, technical assistance for,and the cleanup, remediation or development of, brownfield sites, andof other similar or related costs, by providing loans, pursuant to,and under the terms permitted by, subdivision (h) of Section 44526. (4) In addition to other purposes set forth in this section, theauthority may use moneys in a small business assistance fund to makeor acquire loans or guarantee commercial loans to participatingparties eligible for assistance from those funds. (5) Any moneys repaid or returned to the authority in connectionwith or as a result of any loan or financial assistance made pursuantto this section shall be deposited in the small business assistancefund from which the loan or assistance was originally provided. (6) The authority may contract with qualified financialinstitutions, including, but not limited to, banks, investment andmortgage bankers, insurance companies, sureties, and guarantors, toprovide any necessary assistance in the granting of credit for thesepurposes. (c) Each small business assistance fund established pursuant tothis section shall be deposited in a special account that theController shall create. Notwithstanding any other provision of law,and subject to any requirements of federal tax law or regulationsrelative to maintaining the tax-exempt status of the obligations ofthe authority, all interest or other gains earned by investment ordeposit of money in the special account pursuant to any provision ofPart 2 (commencing with Section 16300) of Division 4 of Title 2 ofthe Government Code or pursuant to any other provision of law shallbe credited to, and deposited in, the account. (d) In carrying out this section, the authority shall participatewith the air pollution control districts and air quality managementdistricts in providing financial assistance in its lending programs.44549.  Any funds of the authority, including proceeds from the saleof bonds or notes issued after the effective date of this section,money set aside for the authority's administrative expenses, andsmall business assistance funds created under Section 44548, may beinvested in any obligations of any state or local government meetingthe requirements of subdivision (a) of Section 103 of the InternalRevenue Code of 1954 (26 U.S.C. Sec. 103 (a)) including mutual funds,trusts, and similar instruments representing a pool of obligations.The Treasurer may adopt regulations providing appropriate investmentstandards for these investments. If the Treasurer determines it to benecessary to assure compliance with federal tax laws or regulations,the authority may, notwithstanding any other provision of law,deposit funds received as fees from the issuance of its obligations,including small business assistance funds, with a bank or trustcompany acting on behalf of the authority. Notwithstanding any otherprovision of law, the authority may also make investments of moneysset aside for the authority's administrative expenses or in any smallbusiness assistance funds by making or purchasing interest-bearingloans to qualified small businesses which are to be assisted pursuantto Section 44548, or under terms and with such security as theauthority determines to be appropriate.