52030. For purposes of this part, a city or county shall have the
following powers:
(a) To issue its bonds to defray, in whole or in part, (1) the
costs of acquiring home mortgages or making loans to lending
institutions in order to enable them to make home mortgages, (2) the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting and marketing services incurred in connection with
the issuance and sale of bonds, including bond and mortgage reserve
accounts; and trustee, custodian and rating agency fees, and (3) such
other costs as are reasonably related to the foregoing.
(b) To sell or otherwise dispose of any home mortgages, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing home mortgages, so that the
revenues and receipts to be derived with respect to the home
mortgages, together with any insurance proceeds, reserve accounts and
earnings thereon, shall be designed to produce revenues and receipts
at least sufficient to provide for the prompt payment at maturity of
principal, interest and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any home mortgages or loans made to lending
institutions pursuant to this part to the punctual payment of bonds
authorized under this part, and the interest and redemption premiums,
if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any home mortgages, notes, loans made to lending institutions
pursuant to this part, or other property in favor of the holder or
holders of bonds issued therefor or the trustee for such holder or
holders.
(e) To sell and convey any home mortgages or loans made to lending
institutions pursuant to this part, for such prices and at such
times as the governing body of the city or county may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted herein.
52031. The exercise of any or all powers granted by this part shall
be authorized and the bonds shall be authorized to be issued under
this part for the purposes set forth in this part, by resolution or
ordinance of the governing body of the city or county which shall
take effect immediately upon adoption. Any such resolution or
ordinance shall set forth a finding and declaration (1) of the public
purpose therefor and (2) that such resolution or ordinance is being
adopted pursuant to the powers granted by this part. The finding and
declaration shall be conclusive evidence of the existence and
sufficiency of the public purpose and powers.
52032. The bonds shall bear interest at such rate or rates, may be
payable at such times, may be in one or more series, may bear such
date or dates, may mature at such time or times not exceeding 45
years from their respective dates, may be payable in such medium of
payment at such place or places, may carry such registration
privileges, may be subject to such terms of redemption at such
premiums, may be executed in such manner, may contain such terms,
covenants and conditions and may be in such form, either coupon or
registered, as the resolution authorizing the bonds may provide. The
bonds may be sold at public or private sale in such manner and upon
such terms as may be provided in such resolution or by separate
resolution. Pending the preparation of definitive bonds, interim
receipts or certificates in such form and with such provisions as may
be provided in such resolution, may be issued to the purchaser or
purchasers of bonds sold pursuant to this part. The bonds and interim
receipts or certificates shall be deemed to be securities and
negotiable instruments within the meaning and for all purposes of the
Uniform Commercial Code of this state, subject to the provisions for
registration thereof contained in such resolution.
52033. Any resolution authorizing the issuance of the bonds may
contain covenants as to (1) the use and disposition of the revenues
and receipts from or with respect to any home mortgages or loans to
lending institutions for which the bonds are to be issued, including
the creation and maintenance of reserves, (2) any insurance to be
carried on any home, home mortgage or bonds and the use and
disposition of insurance moneys, (3) the appointment of one or more
banks or trust companies within or outside the state having the
necessary trust powers as trustee, custodian, or trustee and
custodian for the benefit of the bondholders, paying agent, or bond
registrar, (4) the investment of any funds held by such trustee or
custodian, (5) the maximum interest rate payable on any home
mortgage, and (6) the terms and conditions upon which the holders of
the bonds or any portion thereof, or any trustees therefor, are
entitled to the appointment of a receiver by a court of competent
jurisdiction, and which may provide that the receiver may take
possession of the home mortgages, or any part thereto, and maintain,
sell or otherwise dispose of such mortgages, prescribe other payments
and collect, receive and apply all income and revenues thereafter
arising therefrom.
Any resolution authorizing the issuance of bonds may provide that
the principal or redemption price of, and interest on, the bonds
shall be secured by a mortgage, pledge, assignment, security
interest, insurance agreement or indenture of trust covering such
home mortgages or loans to lending institutions for which the bonds
are issued and may include any improvements or extensions thereafter
made. Such mortgage, pledge, assignment, security interest, insurance
agreement or indenture of trust may contain such covenants and
agreements to properly safeguard the bonds as may be provided for in
the resolution authorizing such bonds and shall be executed in the
manner as may be provided for in the resolution. The provisions of
this part and any such resolution and any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust shall constitute a contract with the holder or holders of the
bonds and continue in effect until the principal of, the interest on,
and the redemption premiums, if any, on the bonds so issued have
been fully paid or provision made therefor, and the duties of the
issuing city or county and its agencies and officers under this part
and any such resolution and any such mortgage, pledge, assignment,
security interest, insurance agreement, or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus,
foreclosure of any such mortgage, pledge, assignment, security
interest, insurance agreement, or indenture of trust or other
appropriate suit, action or proceeding in any court of competent
jurisdiction; provided, the resolution or any mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust under which the bonds are issued may provide that all such
remedies and rights to enforcement may be vested in a trustee (with
full power of appointment) for the benefit of all the bondholders,
and that the trustee shall be subject to the control of such number
of holders or owners of any outstanding bonds as specified in the
resolution.
52034. The bonds shall bear the manual or facsimile signatures of
such officers of the issuing city or county as may be designated in
the resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of the officers of the city or county,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be officers of the city or county. The validity of the
bonds shall not be dependent on, nor affected by, the validity or
regularity of any proceedings relating to the home mortgages for
which the bonds are issued. The resolution authorizing the bonds may
provide that the bonds shall contain a recital that they are issued
pursuant to this part, and the recital shall be conclusive evidence
of their validity and of the regularity of their issuance.
52035. Bonds issued under this part may be secured by a pledge of,
or lien upon the revenues and receipts derived from or with respect
to the home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
have been issued, and the governing body of the issuing city or
county may provide in the resolution authorizing such bonds for the
issuance of additional bonds to be equally and ratably secured by a
lien upon such revenues and receipts.
52036. Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in property pledged and thereafter received by
the issuing city or county, trustee or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract or otherwise against such city or county, trustee or
custodian, irrespective of whether the parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.
52037. All bonds issued pursuant to this part shall be limited
obligations of the city or county issuing the same, payable solely
out of the revenues and receipts derived from or with respect to the
home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
are issued. No holder of any bonds issued under this part has the
right to compel any exercise of the taxing power of a city or county
to pay the bonds, the interest or redemption premium, if any,
thereon, and the bonds shall not constitute an indebtedness of the
issuing city or county or a loan of credit thereof within the meaning
of any constitutional or statutory provision, nor shall the bonds be
construed to create any moral obligation on the part of the issuing
city or county or any agency or subdivision thereof with respect to
the payment of such bonds. It shall be plainly stated on the face of
each bond that it has been issued under the provisions of this part
and that it does not constitute an indebtedness of the city or county
issuing the bond or a loan of credit thereof within the meaning of
any constitutional or statutory provisions.
52038. Neither the members of the governing body of a city or
county, nor any official or employee of a city or county, nor any
person executing bonds issued under this part shall be liable
personally on the bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.
52039. Any property or interests in property held by or on behalf
of a city or county pursuant to the provisions of this part and any
bonds issued under the provisions of this part, their transfer and
the income therefrom, shall at all times be free from taxation of
every kind by the state and city or county, or other political
subdivision of the state, except inheritance and gift taxes.
52040. Notwithstanding any other provision of law, bonds issued
pursuant to this part shall be legal investments for all trust funds,
insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal or
school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by 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.
52041. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure and any other applicable laws of the state to determine the
validity of any issuance or proposed issuance of bonds under this
part and the legality and validity of all proceedings previously
taken or proposed in a resolution of a county or city to be taken for
the authorization, issuance, sale and delivery of the bonds and for
the payment of the principal thereof and interest thereon.
52042. A city or county which has issued bonds pursuant to this
part or any trustee or custodian on behalf of the city or county, may
invest any funds held by it as provided in the resolution
authorizing the issuance of the bonds.
52042.5. Investments under Section 52042 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the State of California and
qualified to provide insurance on mortgages purchased by the Federal
Home Loan Mortgage Corporation or the Federal National Mortgage
Association.
The authority provided in this section and Section 52042 is
additional and alternative to any other authorization for investment
contained in this part, including Section 52044, or in other
provisions of law.
52043. All moneys received pursuant to the provisions of this part,
whether revenues or proceeds from the sale of revenue bonds or
proceeds of mortgage insurance or guarantee claims, shall be deemed
to be trust funds to be held and applied solely for the purposes of
this part. Any bank or trust company in which such moneys are
deposited shall act as trustee of such moneys and shall hold and
apply the same for the purposes specified in this part, subject to
the terms of the resolution authorizing the revenue bonds.
52044. A city or county may provide for the issuance of the revenue
bonds of the city or county for the purpose of refunding any revenue
bonds of the city or county then outstanding, including the payment
of any redemption premiums thereof and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of such bonds, and, if deemed advisable by the city or
county, for the additional purpose of paying all or any part of the
cost of additional residential construction.
The proceeds of revenue bonds issued pursuant to this section may,
in the discretion of the city or county, be applied to the purchase
or retirement at maturity or redemption of outstanding revenue bonds,
either at their earliest or any subsequent redemption date or upon
the purchase or retirement at the maturity thereof and, pending such
application, that portion of the proceeds allocated for such purpose
may be placed in escrow, to be applied to such purchase or retirement
at maturity or redemption on such date, as may be determined by the
city or county. Pending use for purchase, retirement at maturity, or
redemption of outstanding revenue bonds, any proceeds held in such an
escrow may be invested and reinvested as provided in the resolution
authorizing the issuance of the refunding bonds. Any interest or
other increment earned or realized on any such investment may also be
applied to the payment of the outstanding revenue bonds to be
refunded. After the terms of the escrow have been fully satisfied and
carried out, any balance of such proceeds and any interest or
increment earned or realized from the investment thereof may be
returned to the city or county to be used by it for any lawful
purpose under this part. That portion of the proceeds of any revenue
bonds issued pursuant to this section which is designated for the
purpose of paying all or any part of the cost of additional
residential construction may be invested and reinvested in
obligations of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligation of, or
guaranteed by, the United States of America, maturing not later than
the time or times when such proceeds will be needed for the purpose
of paying all or any part of such cost.
All revenue bonds issued pursuant to this section shall be subject
to the provisions of this part in the same manner and to the same
extent as other bonds issued pursuant to this part.
52030. For purposes of this part, a city or county shall have the
following powers:
(a) To issue its bonds to defray, in whole or in part, (1) the
costs of acquiring home mortgages or making loans to lending
institutions in order to enable them to make home mortgages, (2) the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting and marketing services incurred in connection with
the issuance and sale of bonds, including bond and mortgage reserve
accounts; and trustee, custodian and rating agency fees, and (3) such
other costs as are reasonably related to the foregoing.
(b) To sell or otherwise dispose of any home mortgages, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing home mortgages, so that the
revenues and receipts to be derived with respect to the home
mortgages, together with any insurance proceeds, reserve accounts and
earnings thereon, shall be designed to produce revenues and receipts
at least sufficient to provide for the prompt payment at maturity of
principal, interest and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any home mortgages or loans made to lending
institutions pursuant to this part to the punctual payment of bonds
authorized under this part, and the interest and redemption premiums,
if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any home mortgages, notes, loans made to lending institutions
pursuant to this part, or other property in favor of the holder or
holders of bonds issued therefor or the trustee for such holder or
holders.
(e) To sell and convey any home mortgages or loans made to lending
institutions pursuant to this part, for such prices and at such
times as the governing body of the city or county may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted herein.
52031. The exercise of any or all powers granted by this part shall
be authorized and the bonds shall be authorized to be issued under
this part for the purposes set forth in this part, by resolution or
ordinance of the governing body of the city or county which shall
take effect immediately upon adoption. Any such resolution or
ordinance shall set forth a finding and declaration (1) of the public
purpose therefor and (2) that such resolution or ordinance is being
adopted pursuant to the powers granted by this part. The finding and
declaration shall be conclusive evidence of the existence and
sufficiency of the public purpose and powers.
52032. The bonds shall bear interest at such rate or rates, may be
payable at such times, may be in one or more series, may bear such
date or dates, may mature at such time or times not exceeding 45
years from their respective dates, may be payable in such medium of
payment at such place or places, may carry such registration
privileges, may be subject to such terms of redemption at such
premiums, may be executed in such manner, may contain such terms,
covenants and conditions and may be in such form, either coupon or
registered, as the resolution authorizing the bonds may provide. The
bonds may be sold at public or private sale in such manner and upon
such terms as may be provided in such resolution or by separate
resolution. Pending the preparation of definitive bonds, interim
receipts or certificates in such form and with such provisions as may
be provided in such resolution, may be issued to the purchaser or
purchasers of bonds sold pursuant to this part. The bonds and interim
receipts or certificates shall be deemed to be securities and
negotiable instruments within the meaning and for all purposes of the
Uniform Commercial Code of this state, subject to the provisions for
registration thereof contained in such resolution.
52033. Any resolution authorizing the issuance of the bonds may
contain covenants as to (1) the use and disposition of the revenues
and receipts from or with respect to any home mortgages or loans to
lending institutions for which the bonds are to be issued, including
the creation and maintenance of reserves, (2) any insurance to be
carried on any home, home mortgage or bonds and the use and
disposition of insurance moneys, (3) the appointment of one or more
banks or trust companies within or outside the state having the
necessary trust powers as trustee, custodian, or trustee and
custodian for the benefit of the bondholders, paying agent, or bond
registrar, (4) the investment of any funds held by such trustee or
custodian, (5) the maximum interest rate payable on any home
mortgage, and (6) the terms and conditions upon which the holders of
the bonds or any portion thereof, or any trustees therefor, are
entitled to the appointment of a receiver by a court of competent
jurisdiction, and which may provide that the receiver may take
possession of the home mortgages, or any part thereto, and maintain,
sell or otherwise dispose of such mortgages, prescribe other payments
and collect, receive and apply all income and revenues thereafter
arising therefrom.
Any resolution authorizing the issuance of bonds may provide that
the principal or redemption price of, and interest on, the bonds
shall be secured by a mortgage, pledge, assignment, security
interest, insurance agreement or indenture of trust covering such
home mortgages or loans to lending institutions for which the bonds
are issued and may include any improvements or extensions thereafter
made. Such mortgage, pledge, assignment, security interest, insurance
agreement or indenture of trust may contain such covenants and
agreements to properly safeguard the bonds as may be provided for in
the resolution authorizing such bonds and shall be executed in the
manner as may be provided for in the resolution. The provisions of
this part and any such resolution and any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust shall constitute a contract with the holder or holders of the
bonds and continue in effect until the principal of, the interest on,
and the redemption premiums, if any, on the bonds so issued have
been fully paid or provision made therefor, and the duties of the
issuing city or county and its agencies and officers under this part
and any such resolution and any such mortgage, pledge, assignment,
security interest, insurance agreement, or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus,
foreclosure of any such mortgage, pledge, assignment, security
interest, insurance agreement, or indenture of trust or other
appropriate suit, action or proceeding in any court of competent
jurisdiction; provided, the resolution or any mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust under which the bonds are issued may provide that all such
remedies and rights to enforcement may be vested in a trustee (with
full power of appointment) for the benefit of all the bondholders,
and that the trustee shall be subject to the control of such number
of holders or owners of any outstanding bonds as specified in the
resolution.
52034. The bonds shall bear the manual or facsimile signatures of
such officers of the issuing city or county as may be designated in
the resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of the officers of the city or county,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be officers of the city or county. The validity of the
bonds shall not be dependent on, nor affected by, the validity or
regularity of any proceedings relating to the home mortgages for
which the bonds are issued. The resolution authorizing the bonds may
provide that the bonds shall contain a recital that they are issued
pursuant to this part, and the recital shall be conclusive evidence
of their validity and of the regularity of their issuance.
52035. Bonds issued under this part may be secured by a pledge of,
or lien upon the revenues and receipts derived from or with respect
to the home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
have been issued, and the governing body of the issuing city or
county may provide in the resolution authorizing such bonds for the
issuance of additional bonds to be equally and ratably secured by a
lien upon such revenues and receipts.
52036. Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in property pledged and thereafter received by
the issuing city or county, trustee or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract or otherwise against such city or county, trustee or
custodian, irrespective of whether the parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.
52037. All bonds issued pursuant to this part shall be limited
obligations of the city or county issuing the same, payable solely
out of the revenues and receipts derived from or with respect to the
home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
are issued. No holder of any bonds issued under this part has the
right to compel any exercise of the taxing power of a city or county
to pay the bonds, the interest or redemption premium, if any,
thereon, and the bonds shall not constitute an indebtedness of the
issuing city or county or a loan of credit thereof within the meaning
of any constitutional or statutory provision, nor shall the bonds be
construed to create any moral obligation on the part of the issuing
city or county or any agency or subdivision thereof with respect to
the payment of such bonds. It shall be plainly stated on the face of
each bond that it has been issued under the provisions of this part
and that it does not constitute an indebtedness of the city or county
issuing the bond or a loan of credit thereof within the meaning of
any constitutional or statutory provisions.
52038. Neither the members of the governing body of a city or
county, nor any official or employee of a city or county, nor any
person executing bonds issued under this part shall be liable
personally on the bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.
52039. Any property or interests in property held by or on behalf
of a city or county pursuant to the provisions of this part and any
bonds issued under the provisions of this part, their transfer and
the income therefrom, shall at all times be free from taxation of
every kind by the state and city or county, or other political
subdivision of the state, except inheritance and gift taxes.
52040. Notwithstanding any other provision of law, bonds issued
pursuant to this part shall be legal investments for all trust funds,
insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal or
school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by 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.
52041. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure and any other applicable laws of the state to determine the
validity of any issuance or proposed issuance of bonds under this
part and the legality and validity of all proceedings previously
taken or proposed in a resolution of a county or city to be taken for
the authorization, issuance, sale and delivery of the bonds and for
the payment of the principal thereof and interest thereon.
52042. A city or county which has issued bonds pursuant to this
part or any trustee or custodian on behalf of the city or county, may
invest any funds held by it as provided in the resolution
authorizing the issuance of the bonds.
52042.5. Investments under Section 52042 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the State of California and
qualified to provide insurance on mortgages purchased by the Federal
Home Loan Mortgage Corporation or the Federal National Mortgage
Association.
The authority provided in this section and Section 52042 is
additional and alternative to any other authorization for investment
contained in this part, including Section 52044, or in other
provisions of law.
52043. All moneys received pursuant to the provisions of this part,
whether revenues or proceeds from the sale of revenue bonds or
proceeds of mortgage insurance or guarantee claims, shall be deemed
to be trust funds to be held and applied solely for the purposes of
this part. Any bank or trust company in which such moneys are
deposited shall act as trustee of such moneys and shall hold and
apply the same for the purposes specified in this part, subject to
the terms of the resolution authorizing the revenue bonds.
52044. A city or county may provide for the issuance of the revenue
bonds of the city or county for the purpose of refunding any revenue
bonds of the city or county then outstanding, including the payment
of any redemption premiums thereof and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of such bonds, and, if deemed advisable by the city or
county, for the additional purpose of paying all or any part of the
cost of additional residential construction.
The proceeds of revenue bonds issued pursuant to this section may,
in the discretion of the city or county, be applied to the purchase
or retirement at maturity or redemption of outstanding revenue bonds,
either at their earliest or any subsequent redemption date or upon
the purchase or retirement at the maturity thereof and, pending such
application, that portion of the proceeds allocated for such purpose
may be placed in escrow, to be applied to such purchase or retirement
at maturity or redemption on such date, as may be determined by the
city or county. Pending use for purchase, retirement at maturity, or
redemption of outstanding revenue bonds, any proceeds held in such an
escrow may be invested and reinvested as provided in the resolution
authorizing the issuance of the refunding bonds. Any interest or
other increment earned or realized on any such investment may also be
applied to the payment of the outstanding revenue bonds to be
refunded. After the terms of the escrow have been fully satisfied and
carried out, any balance of such proceeds and any interest or
increment earned or realized from the investment thereof may be
returned to the city or county to be used by it for any lawful
purpose under this part. That portion of the proceeds of any revenue
bonds issued pursuant to this section which is designated for the
purpose of paying all or any part of the cost of additional
residential construction may be invested and reinvested in
obligations of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligation of, or
guaranteed by, the United States of America, maturing not later than
the time or times when such proceeds will be needed for the purpose
of paying all or any part of such cost.
All revenue bonds issued pursuant to this section shall be subject
to the provisions of this part in the same manner and to the same
extent as other bonds issued pursuant to this part.
52030. For purposes of this part, a city or county shall have the
following powers:
(a) To issue its bonds to defray, in whole or in part, (1) the
costs of acquiring home mortgages or making loans to lending
institutions in order to enable them to make home mortgages, (2) the
costs of studies and surveys, insurance premiums, underwriting fees,
legal, accounting and marketing services incurred in connection with
the issuance and sale of bonds, including bond and mortgage reserve
accounts; and trustee, custodian and rating agency fees, and (3) such
other costs as are reasonably related to the foregoing.
(b) To sell or otherwise dispose of any home mortgages, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing home mortgages, so that the
revenues and receipts to be derived with respect to the home
mortgages, together with any insurance proceeds, reserve accounts and
earnings thereon, shall be designed to produce revenues and receipts
at least sufficient to provide for the prompt payment at maturity of
principal, interest and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any home mortgages or loans made to lending
institutions pursuant to this part to the punctual payment of bonds
authorized under this part, and the interest and redemption premiums,
if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any home mortgages, notes, loans made to lending institutions
pursuant to this part, or other property in favor of the holder or
holders of bonds issued therefor or the trustee for such holder or
holders.
(e) To sell and convey any home mortgages or loans made to lending
institutions pursuant to this part, for such prices and at such
times as the governing body of the city or county may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted herein.
52031. The exercise of any or all powers granted by this part shall
be authorized and the bonds shall be authorized to be issued under
this part for the purposes set forth in this part, by resolution or
ordinance of the governing body of the city or county which shall
take effect immediately upon adoption. Any such resolution or
ordinance shall set forth a finding and declaration (1) of the public
purpose therefor and (2) that such resolution or ordinance is being
adopted pursuant to the powers granted by this part. The finding and
declaration shall be conclusive evidence of the existence and
sufficiency of the public purpose and powers.
52032. The bonds shall bear interest at such rate or rates, may be
payable at such times, may be in one or more series, may bear such
date or dates, may mature at such time or times not exceeding 45
years from their respective dates, may be payable in such medium of
payment at such place or places, may carry such registration
privileges, may be subject to such terms of redemption at such
premiums, may be executed in such manner, may contain such terms,
covenants and conditions and may be in such form, either coupon or
registered, as the resolution authorizing the bonds may provide. The
bonds may be sold at public or private sale in such manner and upon
such terms as may be provided in such resolution or by separate
resolution. Pending the preparation of definitive bonds, interim
receipts or certificates in such form and with such provisions as may
be provided in such resolution, may be issued to the purchaser or
purchasers of bonds sold pursuant to this part. The bonds and interim
receipts or certificates shall be deemed to be securities and
negotiable instruments within the meaning and for all purposes of the
Uniform Commercial Code of this state, subject to the provisions for
registration thereof contained in such resolution.
52033. Any resolution authorizing the issuance of the bonds may
contain covenants as to (1) the use and disposition of the revenues
and receipts from or with respect to any home mortgages or loans to
lending institutions for which the bonds are to be issued, including
the creation and maintenance of reserves, (2) any insurance to be
carried on any home, home mortgage or bonds and the use and
disposition of insurance moneys, (3) the appointment of one or more
banks or trust companies within or outside the state having the
necessary trust powers as trustee, custodian, or trustee and
custodian for the benefit of the bondholders, paying agent, or bond
registrar, (4) the investment of any funds held by such trustee or
custodian, (5) the maximum interest rate payable on any home
mortgage, and (6) the terms and conditions upon which the holders of
the bonds or any portion thereof, or any trustees therefor, are
entitled to the appointment of a receiver by a court of competent
jurisdiction, and which may provide that the receiver may take
possession of the home mortgages, or any part thereto, and maintain,
sell or otherwise dispose of such mortgages, prescribe other payments
and collect, receive and apply all income and revenues thereafter
arising therefrom.
Any resolution authorizing the issuance of bonds may provide that
the principal or redemption price of, and interest on, the bonds
shall be secured by a mortgage, pledge, assignment, security
interest, insurance agreement or indenture of trust covering such
home mortgages or loans to lending institutions for which the bonds
are issued and may include any improvements or extensions thereafter
made. Such mortgage, pledge, assignment, security interest, insurance
agreement or indenture of trust may contain such covenants and
agreements to properly safeguard the bonds as may be provided for in
the resolution authorizing such bonds and shall be executed in the
manner as may be provided for in the resolution. The provisions of
this part and any such resolution and any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust shall constitute a contract with the holder or holders of the
bonds and continue in effect until the principal of, the interest on,
and the redemption premiums, if any, on the bonds so issued have
been fully paid or provision made therefor, and the duties of the
issuing city or county and its agencies and officers under this part
and any such resolution and any such mortgage, pledge, assignment,
security interest, insurance agreement, or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus,
foreclosure of any such mortgage, pledge, assignment, security
interest, insurance agreement, or indenture of trust or other
appropriate suit, action or proceeding in any court of competent
jurisdiction; provided, the resolution or any mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust under which the bonds are issued may provide that all such
remedies and rights to enforcement may be vested in a trustee (with
full power of appointment) for the benefit of all the bondholders,
and that the trustee shall be subject to the control of such number
of holders or owners of any outstanding bonds as specified in the
resolution.
52034. The bonds shall bear the manual or facsimile signatures of
such officers of the issuing city or county as may be designated in
the resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of the officers of the city or county,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be officers of the city or county. The validity of the
bonds shall not be dependent on, nor affected by, the validity or
regularity of any proceedings relating to the home mortgages for
which the bonds are issued. The resolution authorizing the bonds may
provide that the bonds shall contain a recital that they are issued
pursuant to this part, and the recital shall be conclusive evidence
of their validity and of the regularity of their issuance.
52035. Bonds issued under this part may be secured by a pledge of,
or lien upon the revenues and receipts derived from or with respect
to the home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
have been issued, and the governing body of the issuing city or
county may provide in the resolution authorizing such bonds for the
issuance of additional bonds to be equally and ratably secured by a
lien upon such revenues and receipts.
52036. Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in property pledged and thereafter received by
the issuing city or county, trustee or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract or otherwise against such city or county, trustee or
custodian, irrespective of whether the parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.
52037. All bonds issued pursuant to this part shall be limited
obligations of the city or county issuing the same, payable solely
out of the revenues and receipts derived from or with respect to the
home mortgages or from or with respect to any notes or other
obligations of lending institutions with respect to which the bonds
are issued. No holder of any bonds issued under this part has the
right to compel any exercise of the taxing power of a city or county
to pay the bonds, the interest or redemption premium, if any,
thereon, and the bonds shall not constitute an indebtedness of the
issuing city or county or a loan of credit thereof within the meaning
of any constitutional or statutory provision, nor shall the bonds be
construed to create any moral obligation on the part of the issuing
city or county or any agency or subdivision thereof with respect to
the payment of such bonds. It shall be plainly stated on the face of
each bond that it has been issued under the provisions of this part
and that it does not constitute an indebtedness of the city or county
issuing the bond or a loan of credit thereof within the meaning of
any constitutional or statutory provisions.
52038. Neither the members of the governing body of a city or
county, nor any official or employee of a city or county, nor any
person executing bonds issued under this part shall be liable
personally on the bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.
52039. Any property or interests in property held by or on behalf
of a city or county pursuant to the provisions of this part and any
bonds issued under the provisions of this part, their transfer and
the income therefrom, shall at all times be free from taxation of
every kind by the state and city or county, or other political
subdivision of the state, except inheritance and gift taxes.
52040. Notwithstanding any other provision of law, bonds issued
pursuant to this part shall be legal investments for all trust funds,
insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal or
school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by 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.
52041. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure and any other applicable laws of the state to determine the
validity of any issuance or proposed issuance of bonds under this
part and the legality and validity of all proceedings previously
taken or proposed in a resolution of a county or city to be taken for
the authorization, issuance, sale and delivery of the bonds and for
the payment of the principal thereof and interest thereon.
52042. A city or county which has issued bonds pursuant to this
part or any trustee or custodian on behalf of the city or county, may
invest any funds held by it as provided in the resolution
authorizing the issuance of the bonds.
52042.5. Investments under Section 52042 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the State of California and
qualified to provide insurance on mortgages purchased by the Federal
Home Loan Mortgage Corporation or the Federal National Mortgage
Association.
The authority provided in this section and Section 52042 is
additional and alternative to any other authorization for investment
contained in this part, including Section 52044, or in other
provisions of law.
52043. All moneys received pursuant to the provisions of this part,
whether revenues or proceeds from the sale of revenue bonds or
proceeds of mortgage insurance or guarantee claims, shall be deemed
to be trust funds to be held and applied solely for the purposes of
this part. Any bank or trust company in which such moneys are
deposited shall act as trustee of such moneys and shall hold and
apply the same for the purposes specified in this part, subject to
the terms of the resolution authorizing the revenue bonds.
52044. A city or county may provide for the issuance of the revenue
bonds of the city or county for the purpose of refunding any revenue
bonds of the city or county then outstanding, including the payment
of any redemption premiums thereof and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of such bonds, and, if deemed advisable by the city or
county, for the additional purpose of paying all or any part of the
cost of additional residential construction.
The proceeds of revenue bonds issued pursuant to this section may,
in the discretion of the city or county, be applied to the purchase
or retirement at maturity or redemption of outstanding revenue bonds,
either at their earliest or any subsequent redemption date or upon
the purchase or retirement at the maturity thereof and, pending such
application, that portion of the proceeds allocated for such purpose
may be placed in escrow, to be applied to such purchase or retirement
at maturity or redemption on such date, as may be determined by the
city or county. Pending use for purchase, retirement at maturity, or
redemption of outstanding revenue bonds, any proceeds held in such an
escrow may be invested and reinvested as provided in the resolution
authorizing the issuance of the refunding bonds. Any interest or
other increment earned or realized on any such investment may also be
applied to the payment of the outstanding revenue bonds to be
refunded. After the terms of the escrow have been fully satisfied and
carried out, any balance of such proceeds and any interest or
increment earned or realized from the investment thereof may be
returned to the city or county to be used by it for any lawful
purpose under this part. That portion of the proceeds of any revenue
bonds issued pursuant to this section which is designated for the
purpose of paying all or any part of the cost of additional
residential construction may be invested and reinvested in
obligations of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligation of, or
guaranteed by, the United States of America, maturing not later than
the time or times when such proceeds will be needed for the purpose
of paying all or any part of such cost.
All revenue bonds issued pursuant to this section shall be subject
to the provisions of this part in the same manner and to the same
extent as other bonds issued pursuant to this part.
