SECTIONS 55100-55117

55100.  The local agency may, from time to time, issue its bonds inthe principal amount as the local agency shall determine to benecessary to provide sufficient funds for financing under thisdivision and for the payment of interest on bonds of the localagency, establishment of reserves to secure the bonds, and otherexpenditures of the local agency incident to, and necessary orconvenient to, issuance of the bonds. Prior to the issuance of any bonds pursuant to this division, thelocal agency shall submit to the California Housing Finance Agency, astatement of purpose for which the bonds are proposed to be issuedand the amount of the proposed issuance. The California HousingFinance Agency shall review every statement submitted to it by alocal agency pursuant to this section. The California Housing FinanceAgency shall determine the general adequacy of the program'ssecurity in protecting the state's credit. If the California HousingFinance Agency finds the state's credit would be subject to an unduerisk, it may disapprove the proposed issuance or reduce the amount ofthe proposed issuance. If the California Housing Finance Agency hasnot acted within 30 days of the date that a statement was submittedpursuant to this section, the proposed issuance shall be deemedapproved by the California Housing Finance Agency. The aggregate amount of all bonds approved by the CaliforniaHousing Finance Agency pursuant to this section shall not exceed twohundred million dollars ($200,000,000). The California HousingFinance Agency shall reserve seventy-five million dollars($75,000,000), which shall not be allocated for 24 months after theeffective date of this division. No agency shall initially receive anallocation exceeding fifty million dollars ($50,000,000). If aninitial request exceeds one hundred twenty-five million dollars($125,000,000), the California Housing Finance Agency shall reduceall requests on the basis of the ratio of eligible buildings in thejurisdiction to the estimated number of eligible buildings in thestate as determined by the Seismic Safety Commission until onehundred twenty-five million dollars ($125,000,000) is reached.Twenty-four months after the effective date of this division, theCalifornia Housing Finance Agency may allocate any remaining funds.Funds shall first be allocated to any local agency that has notreceived an allocation. If these requests exceed the available funds,the California Housing Finance Agency shall reduce all requests onthe basis of the ratio of eligible buildings in the jurisdiction tothe estimated number of eligible buildings in the state, asdetermined by the Seismic Safety Commission. If there are fundsremaining after allowing for requests by local agencies that have notpreviously received an allocation, any local agency which hadpreviously received an allocation may request further allocations.Any allocations made to local agencies that have previously receivedallocations shall be made only on the basis of the ratio of eligiblebuildings in the jurisdiction to the estimated number of eligiblebuildings in the state, as determined by the Seismic SafetyCommission. Eligible buildings in the jurisdiction shall bedetermined on the basis of an inventory. After that authorization hasbeen exhausted, all further proposals for issuance of bonds pursuantto this division shall be deemed disapproved by the CaliforniaHousing Finance Agency. The local agency shall reimburse the California Housing FinanceAgency for all administrative costs incurred by the CaliforniaHousing Finance Agency pursuant to this section.55101.  The bonds shall be authorized by resolution or resolutionsof the legislative body of the local agency, shall bear such date ordates, and shall mature at the time or times as the resolution orresolutions may provide, except that no bond shall mature more than40 years from the date of its issuance. The bonds may be issued asserial bonds or as term bonds, or as a combination thereof, and,notwithstanding any other provision of law, the amount of principalof, or interest on, bonds maturing at each date of maturity need notbe equal. The bonds shall bear interest at the rate or rates, be inthe denominations, be in the form, either coupon or registered, carrythe registration privileges, be executed in the manner, be payablein the medium of payment at the place or places within or without thestate, and be subject to the terms of redemption as the resolutionor resolutions may provide. The bonds may be sold at public or private sale in the manner andupon the terms as may be provided in the resolution or by separateresolution. Pending the preparation of definitive bonds, interimreceipts or certificates in the form and with any provisions as maybe provided in the resolution, may be issued to the purchaser orpurchasers of bonds sold pursuant to this division. The bonds andinterim receipts or certificates shall be deemed to be securities andnegotiable instruments within the meaning of, and for all thepurposes of, the California Uniform Commercial Code, subject to theprovisions for registration thereof contained in the resolution.55102.  The local agency may, from time to time, issue (1) bonds torenew bonds and (2) other bond obligations to pay bonds including theinterest thereon, and, whenever it deems refunding expedient, torefund any bonds by the issuance of new bonds, whether the bonds tobe refunded have or have not matured.55103.  Any resolution or resolutions authorizing any bonds or issuethereof may contain provisions, which shall be a part of thecontract or contracts with the holders thereof, as to: (a) Pledging all or any part of the revenues accruing to the localagency pursuant to this division to secure the payment of the bondsor any issue thereof, subject to any agreements with bondholders asmay then exist. (b) Pledging all or any part of the assets of the local agencyunder this division, including mortgages and obligations securing thesame, to secure the payment of the bonds or any issue thereof,subject to any agreements with bondholders as may then exist. (c) The use and disposition of the gross income from financingobligations owned by the local agency and payment of principal offinancing obligations owned by the local agency. (d) The setting aside of reserves or sinking funds and theregulation and disposition thereof. (e) Limitations on the purposes to which the proceeds of a sale ofbonds may be applied and pledging the proceeds to secure the paymentof the bonds or of any issue thereof. (f) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured, and therefunding of outstanding bonds. (g) 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 which theconsent may be given. (h) Limitations on the amount of money to be expended by the localagency for operating expenses of the local agency under thisdivision. (i) Vesting in a trustee or trustees any property, rights, powers,and duties in trust as the local agency may determine, which mayinclude any or all of the rights, powers, and duties of the trusteeappointed on behalf of the bondholders pursuant to this part andlimiting or abrogating the right of the bondholders to appoint atrustee or limiting the rights, powers, and duties of the trustee. (j) Defining the acts or omissions to act which shall constitute adefault in the obligations and duties of the local agency to theholders of the bonds and providing for the rights and remedies of theholders of the bonds in the event of a default. However, the rightsand remedies shall not be inconsistent with the general laws of thestate and the other provisions of this division. (k) Any other matters, of like or different character, which inany way affect the security, protection, or investment return of theholders of the bonds.55104.  Any resolution or resolutions authorizing any bonds or issuethereof shall specify the extent to which revenues resulting fromfinancing provided with proceeds of the bonds so authorized are to beused to secure the bonds and the extent to which the revenues may beused for other purposes.55105.  Any pledge made by the local agency shall be valid andbinding from the time when the pledge is made. The revenues, moneys,or property so pledged and thereafter received by the local agencyshall immediately be subject to the lien of the pledge without anyphysical delivery thereof or further act, and the lien of the pledgeshall be valid and binding as against all parties having claims ofany kind in tort, contract, or otherwise against the local agency,irrespective of whether the parties have notice thereof. Neither theresolution nor any other instrument by which a pledge is created needbe recorded.55106.  Bond underwriters and consultants may be selected by thelocal agency.55107.  Neither the members of the legislative body of the localagency, nor any official or employee thereof, nor any other personexecuting the bonds shall be subject to any personal liability oraccountability by reason of the issuance thereof.55108.  Any resolution authorizing any bonds or issue thereof maydesignate a trustee for the local agency and holders of its bonds,and shall in such case prescribe the duties of the trustee withrespect to the issuance, authentication, sale, and delivery of thebonds, the payment of principal and interest thereof, and theredemption of bonds. The legislative body of the local agency may provide by aresolution for the deposit of all revenues pledged for the securityof the bonds in one or more separate accounts under the control ofthe trustee. The money in the accounts shall be disbursed only asprovided in the resolution. The resolution may authorize the trustee to act on behalf of theholders of bonds, or any stated percentage thereof, for the purposeof exercising and prosecuting on behalf of the holders of the bondsany rights and remedies as may be available to the holders.55109.  The trustee acting on behalf of bondholders shall have andpossess all the powers necessary or convenient for the exercise ofany functions specifically set forth in this part or incident to thegeneral representation of bondholders in the enforcement andprotection of their rights.55110.  Whether or not the bonds are of the form and character as tobe negotiable instruments under, or subject to, the terms of theCalifornia Uniform Commercial Code, the bonds and any securityinstruments underlying the bonds are hereby made negotiableinstruments within the meaning of, and for all the purposes of, theCalifornia Uniform Commercial Code, subject to the provisions forregistration of the bonds contained in the resolution.55111.  In the event any person whose signature appears on the bondsceases to hold office prior to delivery of the bonds, the signatureshall nevertheless be valid and sufficient for all purposes, the sameas if the person had remained in office until the delivery.55112.  The local agency may create one or more bond reserveaccounts to secure payments of the principal of, and interest andsinking fund payments on, any bonds or any issuance thereof, asspecified in the resolution authorizing the bonds.55113.  The local agency may provide for the issuance of refundingbonds for the purpose of refunding any bonds then outstanding whichhave been issued under the provisions of this part, including thepayment of any redemption premium thereon and any interest accrued orto accrue to the date of redemption of the bonds. The issuance ofrefunding bonds, the maturities and other details thereof, the rightsof the holders thereof, and the rights, duties, and obligations ofthe local agency in respect of the same shall be governed by theprovisions of this part which relate to the issuance of bonds,insofar as the provisions may be appropriate therefor.55114.  Refunding bonds may be sold or exchanged for outstandingbonds issued under this part and, if sold, the proceeds thereof maybe applied, in addition to any other authorized purposes, to thepurchase, redemption, or payment of the outstanding bonds. Pendingthe application of the proceeds of any refunding bonds, with anyother available moneys, (1) to the payment of the principal, accruedinterest, and any redemption premium on the bonds being refunded, (2)to the payment of any interest on the refunding bonds, or (3) to anyexpenses incurred in connection with refunding, the proceeds may beinvested in any obligations permitted under the bond resolutionauthorizing the issuance of refunding bonds.55115.  The state does hereby pledge to and agree with the holdersof any bonds issued under this part that the state will not limit oralter the rights hereby vested in the local agency to fulfill theterms of any agreements made with the holders thereof or in any wayimpair the rights and remedies of the holders until the bonds,together with the interest thereon, with interest on any unpaidinstallments of interest, and all costs and expenses in connectionwith any action or proceeding by or on behalf of the holders, arefully met and discharged. The local agency is authorized to includethis pledge and agreement of the state in any agreement with theholders of the bonds.55116.  All bonds issued pursuant to this division shall be limitedobligations of the local agency issuing the same, payable solely outof the revenues and receipts derived from or with respect tofinancing under this division or from or with respect to any notes orother obligations of lending institutions with respect to which thebonds are issued. No holder of any bonds issued under this divisionhas the right to compel any exercise of the taxing power of a localagency to pay the bonds, the interest or redemption premium, if any,thereon, and the bonds shall not constitute an indebtedness of theissuing local agency or a loan of credit thereof within the meaningof any constitutional or statutory provision, nor shall the bonds beconstrued to create any moral obligation on the part of the issuinglocal agency or any agency or subdivision thereof with respect to thepayment of the bonds. It shall be plainly stated on the face of eachbond that it has been issued under the provisions of this divisonand that it does not constitute an indebtedness of the local agencyissuing the bond or a loan of credit thereof within the meaning ofany constitutional or statutory provisions.55117.  The bonds shall be legal investments in which all publicofficers and public bodies of this state, its political subdivisions,all municipalities and municipal subdivisions, all insurancecompanies and associations and other persons carrying on an insurancebusiness, all banks, bankers, banking institutions, includingsavings and loan associations, building and loan associations, trustcompanies, savings banks and savings associations, investmentcompanies and other persons carrying on a banking business, alladministrators, guardians, executors, trustees and other fiduciaries,and all other persons whatsoever who are now or may hereafter beauthorized to invest in bonds or in other obligations of the state,may properly and legally invest funds, including capital, in theircontrol or belonging to them. The bonds may be used by any suchprivate financial institution, person, or association as security forpublic deposits. The bonds are also hereby made securities which mayproperly and legally be deposited with and received by all publicofficers and bodies of the state or any agency or politicalsubdivision of the state and all municipalities and publiccorporations for any purpose for which the deposit of bonds or otherobligations of the state is now or may hereafter be authorized bylaw, including deposits to secure public funds.