SECTIONS 90500-90508

90500.  The district may borrow money and incur indebtedness, andmay issue bonds or other evidences of indebtedness. No indebtednessshall be incurred exceeding the ordinary annual income and revenue ofthe district without the approval of 60 percent of the voters votingon the proposition to incur such indebtedness, except that a furthervote of the voters is not required for any indebtedness incurredwithin the purposes and not exceeding the available amount of anypreviously authorized bond issue, and as to such indebtedness theproceeds of any of the bonds unexpended in the treasury of thedistrict, or the par value of any of the bonds which are unsold shallbe deemed a part of the ordinary annual income and revenue of thedistrict.90501.  The district may borrow money for the purpose of defrayingthe expenses of the district lawfully incurred after the commencementof the fiscal year, but prior to the time moneys from the tax levyfor the fiscal year are received by the district, in a sum whichshall not exceed five cents ($0.05) on each one hundred dollars($100) of assessed valuation of taxable property in the district atthe time the moneys are borrowed, and may evidence such borrowing bynotes bearing interest at a rate not to exceed six (6) percent perannum. The notes shall be payable from the tax levy from the thencurrent fiscal year, which levy shall contain a sum sufficient toprovide for the payment of the notes and the interest thereon. Theform of said notes and the proceedings relating to their issuance andsale, will be governed by the applicable provisions contained inArticle 7 (commencing with Section 53820) of Chapter 4 of Part 1 ofDivision 2 of Title 5 of the Government Code.90501.5.  The board of directors of the district may, within aperiod of two years from and after the formation of the district,pursuant to a resolution adopted by it for the purpose, borrow moneyon certificates of indebtedness, promissory notes, or other evidencesof indebtedness, in anticipation of the estimated tax revenue forthe following fiscal year, to be repaid within four years from thedate of borrowing with interest at a rate not to exceed 6 percent perannum, in order to enable the district to meet all of its necessaryinitial expenses of organization, construction, acquisition,maintenance, and operation. The total amount of money borrowed andindebtedness incurred under this section during this two-year periodshall not exceed 50 percent of the total amount of estimated taxrevenue as estimated by the county auditor of the county in which thedistrict lies for the following fiscal year. The form of said notes and the proceedings relating to theirissuance and sale, will be governed by the applicable provisionscontained in Article 7 (commencing with Section 53820) of Chapter 4of Part 1 of Division 2 of Title 5 of the Government Code.90502.  The district shall not incur an indebtedness for publicworks which in the aggregate exceeds 15 percent of the assessed valueof all the real and personal property within the district.90503.  Indebtedness which has been incurred for the acquisition,construction, and operation of transit facilities, where the revenuefrom the transit facilities for three years or more next precedinghas been sufficient to pay the interest and principal due on anybonds issued for its construction or acquisition, in addition to thecost of operation and maintenance, shall not be counted and includedin ascertaining the limit of indebtedness.90504.  The district may accept, without limitation by any otherprovisions of this act requiring approval of indebtedness,contributions or loans from the United States, this state, or anydepartment, instrumentality, or agency of either thereof, for thepurpose of financing the acquisition, construction, maintenance, andoperation of transit facilities, and may enter into contracts andcooperate with, and accept cooperation from, the United States, thisstate, or any department, instrumentality, or agency of eitherthereof, in the acquisition, construction, maintenance, andoperation, and in financing the acquisition, construction,maintenance, and operation, of any such transit facilities inaccordance with any legislation which Congress or the Legislature ofthe State of California may have heretofore adopted or may hereafteradopt, under which aid, assistance, and cooperation may be furnishedby the United States or this state in the acquisition, construction,maintenance, and operation of any such transit facilities. Thedistrict may do any and all things necessary in order to avail itselfof such aid, assistance, and cooperation under any federal or statelegislation now or hereafter enacted. Any evidence of indebtednessissued under this section shall constitute a negotiable instrument.90505.  The district may purchase equipment such as cars, trolleybuses and motorbuses, and rolling equipment, and may executeagreements, leases and equipment trust certificates in the formscustomarily used by private corporations engaged in the transitbusiness appropriate to effect the purchase and leasing of rollingequipment and may dispose of the equipment trust certificates uponthe terms and conditions as the board may deem appropriate. All moneyrequired to be paid by the district pursuant to the agreements,leases and equipment trust certificates provided for in this sectionshall be payable solely from the revenues or income to be derivedfrom the transit facilities and from grants and loans as provided inSection 90504. Payment for equipment, or the rental of equipment, maybe made in installments and the deferred installments may beevidenced by equipment trust certificates payable solely from revenueor income as provided in this section, and title to the equipmentshall not vest in the district until the equipment trust certificatesare paid.90506.  The agreement to purchase or lease may direct the vendor orlessor to sell and assign or lease the rolling equipment to a bank ortrust company, duly authorized to transact business in the State ofCalifornia, as trustee, for the benefit and security of the equipmenttrust certificates and may direct the trustee to deliver the rollingequipment to one or more designated officers of the district and mayauthorize the district to simultaneously execute and deliver aninstallment purchase agreement or a lease of the equipment to thedistrict.90507.  The agreements and leases shall be duly acknowledged beforea person authorized by law to take acknowledgments of deeds and inthe form required for acknowledgment of deeds. The agreements,leases, and equipment trust certificates shall be authorized byresolution of the district and shall contain such covenants,conditions and provisions as may be deemed necessary or appropriateto insure the payment of the equipment trust certificates from therevenue or income to be derived from the transit system.90508.  The covenants, conditions and provisions of the agreements,leases, and equipment trust certificates shall not conflict with anyof the provisions of any trust agreements securing the payment ofbonds, notes or certificates of the district.