State Codes and Statutes

Statutes > California > Shc > 31140-31175

STREETS AND HIGHWAYS CODE
SECTION 31140-31175



31140.  Whenever the authority determines that it is for the best
interests of the public highways in the state that the toll tunnel be
constructed and operated by the authority, based upon preliminary
estimates of the cost of construction thereof, an estimate of the
amount required to be raised for that purpose by the issuance of
revenue bonds, and a statement of the probable amount of money,
property, materials, or labor to be contributed from other sources in
aid of the construction prepared by its staff, it shall adopt a
resolution declaring that public interest and necessity require the
construction of the toll tunnel and authorizing the issuance of
revenue bonds for the purpose of obtaining funds in an amount not in
excess of that estimated to be required for the construction thereof.




31141.  All bonds authorized pursuant to this chapter shall be
issued in the name of the authority and shall constitute obligations
of the authority only. Such bonds shall be identified as toll tunnel
bonds and shall contain a recital on the face thereof that the
payment or redemption of the bonds and the payment of the interest
thereon is secured by a direct and exclusive charge and lien upon the
tolls and other revenues of any nature whatever received from the
operation of the toll tunnel, and that neither the payment of the
principal or any part thereof or any interest thereon, constitutes a
debt, liability, or obligation of the state or of El Dorado County.



31142.  The authority shall determine the form, conditions, and
denominations of all bonds, the dates which the bonds to be sold
shall bear, and the interest rate thereon which shall not exceed 6
percent per annum. The rate of interest need not be uniform for all
bonds of the same authorized issue. Principal and interest of the
bonds shall be payable at such places as are fixed and determined by
the authority. The bonds may contain provisions for registration as
to principal only and as to both principal and interest. The bonds
shall be issued in coupon form with interest payable at such times as
are determined by the authority, and shall mature at such times and
in such amounts as the authority prescribes.


31143.  The authority may provide for the retirement of the bonds at
any time or times prior to their maturity, in such manner and upon
payment of such premiums as may be fixed and determined in the
proceedings providing for the issuance of the bonds and referred to
therein.



31144.  All bonds shall be signed by the treasurer and countersigned
by the chairman. The signatures of the treasurer and the chairman
may be by facsimile, but said bonds shall be authenticated by such
signatures as the bond resolution or indenture may require. All
interest coupons shall bear the facsimile signature of the treasurer.
In case any officer whose signature or countersignature appears on
the bonds or coupons ceases to hold his office before the delivery of
the bonds to the purchaser, his signature or countersignature is
nevertheless valid and sufficient for all purposes the same as if he
had remained in office until the delivery of the bonds.



31145.  All revenue bonds authorized pursuant to this chapter may be
issued and sold by the authority from time to time and in such
amounts as the authority deems necessary to provide sufficient funds
for the purposes for which the bonds were authorized, including the
payment of interest on the bonds during the period of actual
construction, and for a period of six months thereafter, and the
proceeds thereof are available for those purposes.



31146.  Bonds authorized pursuant to this chapter may be sold below
the par or face value thereof, but the sale price shall not be less
than that which will yield the purchaser 6 percent a year according
to standard tables of bond values, and shall include the interest
which has accrued thereon up to the date of delivery of the bonds.




31147.  Successive issues of bonds within the limits of the original
authorization for the issuance of bonds for the acquisition or
construction of the toll tunnel shall have equal preference with
respect to the redemption thereof and the payment of interest
thereon, but the authority may fix different maturity dates, serially
or otherwise, for successive issues under any one original
authorization.



31148.  All bonds issued and sold pursuant to this chapter shall be
sold on sealed proposals to the highest and best bidder after such
advertising for bids as the authority deems proper. The authority may
reject any and all bids submitted and may thereafter sell the bonds
so advertised for sale at private sale under such terms and
conditions as it deems most advantageous to its own interest, but the
bonds shall not be sold at a price below that of the best bid which
was rejected.



31149.  Temporary or interim bonds, certificates, or receipts,
signed by the treasurer, of any denomination whatever and with or
without coupons attached thereto, may be issued and delivered until
the definitive bonds are executed and available for delivery.




31150.  The purchase price of all bonds issued pursuant to this
chapter shall be paid to the treasurer for the account of the
authority.


31151.  The authority may include in the proceedings authorizing the
issuance of bonds any provisions not inconsistent with this chapter
which limit, restrict, or regulate the holding, deposit, investment,
and application of money consisting of the proceeds from the sale of
the bonds or the tolls and other revenues received from the operation
of the toll tunnel, and such provisions shall constitute a contract
with the holders of the bonds and be binding upon the authority as
long as the bonds are outstanding.



31152.  The authority may provide in the proceedings authorizing the
issuance of bonds for the setting up of one or more reserve funds
out of the proceeds of the bonds or out of the tolls and other
revenues not needed for the payment of interest on the bonds and the
principal of the bonds as they currently mature, and for the
preservation and continuance thereof in a manner to be provided
therein, and may also require the immediate application of all
surplus money in any such toll revenue fund to the retirement, by
call or purchase, of the bonds prior to maturity in such manner and
upon such terms and the payment of such premiums as the authority
deems advisable.



31153.  The authority may provide in the proceedings authorizing the
issuance of bonds, or may otherwise agree with the purchasers of
bonds, regarding the deposit of all money constituting the
Acquisition and Construction Fund and the Toll Revenue Fund, and may
provide for the deposit of such money at such times, with such
depositaries or paying agents, and upon the furnishing of such
security as may meet with the approval of the purchasers of the
bonds. The depositaries and security provided for or agreed upon,
however, shall be qualified and eligible in accordance with law.




31154.  The authority may provide in the proceedings authorizing the
issuance of bonds for the carrying of insurance as authorized by
this chapter, and the purchase and carrying of such insurance shall
thereupon be obligatory upon the authority and be paid for out of the
Toll Revenue Fund as may be specified in the proceedings.




31155.  Whenever any bonds are to be issued pursuant to this
chapter, the authority, from time to time, upon such terms and
conditions in all respects as it approves and consistently with this
chapter, may enter into indentures or agreements containing any or
all of the following provisions:
   (a) Providing for the amount, form, maturities, registration, and
transfer and interchange of the bonds and coupons and the terms and
conditions upon which they shall be issued, sold, paid, retired,
funded, and refunded.
   (b) Providing for a sinking fund for the bonds and designating a
trustee or trustees, which shall be a bank or trust company or banks
or trust companies duly qualified to do business in this state, to
receive and disburse the revenues of the toll bridge works or
improvement.
   (c) Providing that as long as any of such bonds are outstanding
there shall be raised in each year by tolls not less than the minimum
amounts required for interest, sinking fund, redemption, and reserve
requirements for the bonds, in addition to the amount needed for
current operating and maintenance expenses, including insurance
costs, required to be paid from such sources.
   (d) Such other provisions for the protection of the holders of the
bonds as the authority approves including, without limiting (a),
(b), or (c), provisions that in the event of refusal or failure to
comply with any provision of this chapter or any other applicable
law, or of any agreement made with the holders of the bonds or of any
issue thereof, the holders of a stated percentage in aggregate
principal amount of the bonds, or of such issue thereof as the case
may be, then outstanding may, in accordance with such appropriate
procedure as is provided in the agreement or indenture, appoint a
trustee to represent all the holders of the bonds, or all the holders
of the issue thereof as the case may be, in the matter of exercising
and prosecuting on their behalf such rights and remedies as are
available to them under the law. The authority shall in its absolute
discretion fix the terms and conditions upon which the trustee or
trustees shall receive, hold and disburse the revenues and may
prescribe the powers and duties of the trustee or trustees.



31156.  All benefits conferred or obligations imposed by this
chapter or by any other law with respect to making provision for the
payment, whether from tolls or other revenues received from the use
and operation of the toll tunnel or from other sources, of expenses
in connection with the operation, maintenance, and insurance of, and
the construction of approaches to, the toll tunnel, shall,
notwithstanding the retirement or discharge of any or all of the
bonds issued by the authority for the purpose of constructing the
toll tunnel, inure to and continue for the benefit of any other bonds
issued pursuant to this chapter as additional to, or funding, or
refunding the bonds originally issued.



31157.  The authority may contract loans and borrow money through
the sale of bonds of the same character as those authorized pursuant
to this chapter, from the United States or any of its departments,
agencies, or instrumentalities upon such conditions and terms as may
be agreed to. Such bonds shall be subject to all the provisions of
this chapter except the requirement that bonds be first offered at
public sale pursuant to advertisement.



31158.  If a bond issue for the acquisition or construction of the
toll tunnel is authorized and sold in whole or in part and the
authority deems it advisable and advantageous to enlarge or extend
the toll tunnel or to change the structure or design thereof in order
to afford new or greater facilities for any type or class of
traffic, the authority may issue additional bonds for the purpose of
enlarging or extending the toll tunnel or changing the structure or
design thereof in order to afford such new or greater facilities.
Such additional bonds shall be issued only if the surrender and
cancellation of all outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed can be assured
or obtained by call or by consent of the holders thereof. Such
additional bonds shall not constitute a debt or obligation of the
state or of El Dorado County but shall be bonds of the authority of
the same character and payable from the same funds as other bonds
authorized pursuant to this chapter. The pledge of the tolls and
other revenues to be received from the operation of the toll tunnel
to the payment of outstanding bonds shall not be lessened,
diminished, or affected in any way by the issuance of such additional
bonds.


31159.  If the outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed are, at the
time of issuance of the additional bonds, by their terms subject to
immediate retirement before maturity at the option of the authority,
or if the holders consent to the retirement of such bonds, the
authority may include in the issue of bonds to be sold for the
purpose of enlarging or extending the toll tunnel or changing the
design thereof, an amount of bonds sufficient to produce funds with
which to retire the outstanding bonds according to their terms.
Before any such additional bonds are delivered the authority shall
first duly call the outstanding bonds for redemption in accordance
with their terms and conditions or obtain the consent of the holders
thereof to their retirement.



31160.  Out of the proceeds derived from the sale of any such
additional bonds there shall be set aside an amount of money
sufficient to retire such outstanding bonds as may be thereafter
presented for payment. Bonds of the new authorized issue may be
delivered in part in exchange for a like principal amount of
outstanding bonds of the original issue if the holders of the
outstanding bonds to be exchanged consent thereto.



31161.  All provisions of this chapter apply with like force and
effect to the issuance of any bonds of the new authorized issue, and
the holders thereof are subrogated to all the rights and powers of
the holders of the bonds which are surrendered in exchange therefor,
except as such rights and powers are modified by the express terms of
the bonds of the new authorized issue or the proceedings authorizing
their issuance.



31162.  Whenever bonds of any kind have been issued and are
outstanding pursuant to this chapter, the authority may from time to
time or at one time issue and sell or exchange funding or refunding
bonds for the purpose of retiring, paying, funding, or refunding
either all or such part of the outstanding bonds or of one or more
issues or series thereof, as it deems advisable. Such funding or
refunding bonds shall be issued and delivered only when the issue or
series of bonds to be funded or refunded have matured, are about to
mature, are subject to retirement before maturity, or if the
outstanding bonds are not subject to retirement, the retirement
thereof has been assured or obtained by consent of the holders
thereof. Funding or refunding bonds may be delivered wholly or in
part in exchange for outstanding bonds to be funded or refunded
thereby, if the holders of the outstanding bonds to be exchanged
consent thereto.


31163.  Funding or refunding bonds shall not constitute a debt or
obligation of the state or of El Dorado County, but shall be bonds of
the authority of the same character and payable from the same funds
as other bonds authorized pursuant to this chapter. Any and all
reserve or other funds applicable to the payment of the bonds funded
or refunded, may, if so directed by the authority, be transferred to
any reserve or other funds provided with respect to the funding or
refunding bonds. The pledge of the tolls and other revenues to be
received from the operation of the toll tunnel to the payment of
outstanding bonds shall not be lessened, diminished, or affected in
any way by the issuance of such funding or refunding bonds.




31164.  Except as otherwise provided in this article, and except as
modified by the express terms of the funding or refunding bonds or
the proceedings authorizing their issuance, all the provisions of
this chapter apply to such funding or refunding bonds and to the
issuance and sale or exchange thereof, and the holders thereof shall
be subrogated to all the rights and powers of the holders of the
bonds funded or refunded thereby or surrendered in exchange therefor.



31165.  Any funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for:
   (a) The payment of the bonds to be funded or refunded thereby.
   (b) All expenses incidental to the calling, retiring, or payment
of the outstanding bonds and the issuance of the funding or refunding
bonds, including the difference in amount between the par value of
the funding or refunding bonds and any amount less than par for which
they may be sold.
   (c) Any amount necessary to be made available for the payment of
interest upon the funding or refunding bonds from the date of their
sale to the date of maturity or payment of the bonds to be funded or
refunded out of the proceeds of the sale, or the date upon which the
bonds to be funded or refunded will be paid pursuant to the call
thereof or agreement with the holders thereof.
   (d) The premium, if any, necessary to be paid in order to call or
retire the outstanding bonds.


31166.  All bonds issued pursuant to this chapter are negotiable
instruments under the law merchant.



31167.  All bonds issued pursuant to this chapter and the income
therefrom are at all times exempt from taxation, except for transfer,
inheritance, and estate taxes.



31168.  Bonds issued pursuant to this chapter shall not constitute
or be a debt, liability, or obligation of the state or El Dorado
County. The payment of both principal and interest of all bonds shall
be secured only by the tolls or other revenues collected from the
toll tunnel, other revenues and interest thereon, and sinking funds
created therefrom received by the authority, and shall be paid from
such tolls or revenues or from such other contributions or
appropriations as may be made available pursuant to this chapter.



31169.  The bond redemption and interest payments constitute a first
direct and exclusive charge and lien on all tolls and other
revenues, and interest thereon, and sinking funds created therefrom
received from the use and operation of the toll tunnel. Such tolls
and revenues together with the interest earned thereon constitute a
trust fund for the security and payment of the bonds and shall not be
used or pledged for any other purpose as long as any such bonds are
outstanding and unpaid.



31170.  While any bonds issued by the authority remain outstanding,
the powers, duties, or existence of the authority shall not be
diminished or impaired in any manner that will affect adversely the
interests and rights of the holders of the bonds.




31171.  The holder of any bond may by mandamus or other appropriate
proceeding compel the performance of any of the duties imposed upon
the authority or its officers, agents, and employees in connection
with the construction, maintenance, operation, and insurance of the
toll tunnel, in connection with the collection, deposit, investment,
application, and disbursement of all tolls and other revenues derived
from the operation and use of the toll tunnel, and in connection
with the deposit, investment, and disbursement of the proceeds
received from the sale of bonds. The enumeration of rights and
remedies in this chapter does not exclude the exercise or prosecution
of any other rights or remedies by the holders of such bonds.




31172.  The Commissioner of Financial Institutions may investigate
and ascertain the status or sufficiency as investments for savings
banks in this state of any such bonds. If upon investigation it is
determined in his or her opinion that such bonds constitute a proper
investment for savings banks, he or she shall so certify. The
Commissioner of Financial Institutions may revoke any such
certificate issued by him or her at any time in his or her
discretion.


31173.  All bonds issued by the authority pursuant to this chapter,
and which have been first certified by the Commissioner of Financial
Institutions, are legal investments for all trust funds, for the
funds of all insurance companies, commercial and savings banks, and
trust companies, and for state school funds.



31174.  Any money or funds which may by law be invested in bonds of
the state, cities, counties, or school districts in the state may be
invested in the bonds issued by the authority.



31175.  Whenever any bonds of the state, or of any city, county, or
school district in the state, may by law be used as security for the
performance of any act or the deposit of any public money the bonds
issued by the authority may be so used.


State Codes and Statutes

Statutes > California > Shc > 31140-31175

STREETS AND HIGHWAYS CODE
SECTION 31140-31175



31140.  Whenever the authority determines that it is for the best
interests of the public highways in the state that the toll tunnel be
constructed and operated by the authority, based upon preliminary
estimates of the cost of construction thereof, an estimate of the
amount required to be raised for that purpose by the issuance of
revenue bonds, and a statement of the probable amount of money,
property, materials, or labor to be contributed from other sources in
aid of the construction prepared by its staff, it shall adopt a
resolution declaring that public interest and necessity require the
construction of the toll tunnel and authorizing the issuance of
revenue bonds for the purpose of obtaining funds in an amount not in
excess of that estimated to be required for the construction thereof.




31141.  All bonds authorized pursuant to this chapter shall be
issued in the name of the authority and shall constitute obligations
of the authority only. Such bonds shall be identified as toll tunnel
bonds and shall contain a recital on the face thereof that the
payment or redemption of the bonds and the payment of the interest
thereon is secured by a direct and exclusive charge and lien upon the
tolls and other revenues of any nature whatever received from the
operation of the toll tunnel, and that neither the payment of the
principal or any part thereof or any interest thereon, constitutes a
debt, liability, or obligation of the state or of El Dorado County.



31142.  The authority shall determine the form, conditions, and
denominations of all bonds, the dates which the bonds to be sold
shall bear, and the interest rate thereon which shall not exceed 6
percent per annum. The rate of interest need not be uniform for all
bonds of the same authorized issue. Principal and interest of the
bonds shall be payable at such places as are fixed and determined by
the authority. The bonds may contain provisions for registration as
to principal only and as to both principal and interest. The bonds
shall be issued in coupon form with interest payable at such times as
are determined by the authority, and shall mature at such times and
in such amounts as the authority prescribes.


31143.  The authority may provide for the retirement of the bonds at
any time or times prior to their maturity, in such manner and upon
payment of such premiums as may be fixed and determined in the
proceedings providing for the issuance of the bonds and referred to
therein.



31144.  All bonds shall be signed by the treasurer and countersigned
by the chairman. The signatures of the treasurer and the chairman
may be by facsimile, but said bonds shall be authenticated by such
signatures as the bond resolution or indenture may require. All
interest coupons shall bear the facsimile signature of the treasurer.
In case any officer whose signature or countersignature appears on
the bonds or coupons ceases to hold his office before the delivery of
the bonds to the purchaser, his signature or countersignature is
nevertheless valid and sufficient for all purposes the same as if he
had remained in office until the delivery of the bonds.



31145.  All revenue bonds authorized pursuant to this chapter may be
issued and sold by the authority from time to time and in such
amounts as the authority deems necessary to provide sufficient funds
for the purposes for which the bonds were authorized, including the
payment of interest on the bonds during the period of actual
construction, and for a period of six months thereafter, and the
proceeds thereof are available for those purposes.



31146.  Bonds authorized pursuant to this chapter may be sold below
the par or face value thereof, but the sale price shall not be less
than that which will yield the purchaser 6 percent a year according
to standard tables of bond values, and shall include the interest
which has accrued thereon up to the date of delivery of the bonds.




31147.  Successive issues of bonds within the limits of the original
authorization for the issuance of bonds for the acquisition or
construction of the toll tunnel shall have equal preference with
respect to the redemption thereof and the payment of interest
thereon, but the authority may fix different maturity dates, serially
or otherwise, for successive issues under any one original
authorization.



31148.  All bonds issued and sold pursuant to this chapter shall be
sold on sealed proposals to the highest and best bidder after such
advertising for bids as the authority deems proper. The authority may
reject any and all bids submitted and may thereafter sell the bonds
so advertised for sale at private sale under such terms and
conditions as it deems most advantageous to its own interest, but the
bonds shall not be sold at a price below that of the best bid which
was rejected.



31149.  Temporary or interim bonds, certificates, or receipts,
signed by the treasurer, of any denomination whatever and with or
without coupons attached thereto, may be issued and delivered until
the definitive bonds are executed and available for delivery.




31150.  The purchase price of all bonds issued pursuant to this
chapter shall be paid to the treasurer for the account of the
authority.


31151.  The authority may include in the proceedings authorizing the
issuance of bonds any provisions not inconsistent with this chapter
which limit, restrict, or regulate the holding, deposit, investment,
and application of money consisting of the proceeds from the sale of
the bonds or the tolls and other revenues received from the operation
of the toll tunnel, and such provisions shall constitute a contract
with the holders of the bonds and be binding upon the authority as
long as the bonds are outstanding.



31152.  The authority may provide in the proceedings authorizing the
issuance of bonds for the setting up of one or more reserve funds
out of the proceeds of the bonds or out of the tolls and other
revenues not needed for the payment of interest on the bonds and the
principal of the bonds as they currently mature, and for the
preservation and continuance thereof in a manner to be provided
therein, and may also require the immediate application of all
surplus money in any such toll revenue fund to the retirement, by
call or purchase, of the bonds prior to maturity in such manner and
upon such terms and the payment of such premiums as the authority
deems advisable.



31153.  The authority may provide in the proceedings authorizing the
issuance of bonds, or may otherwise agree with the purchasers of
bonds, regarding the deposit of all money constituting the
Acquisition and Construction Fund and the Toll Revenue Fund, and may
provide for the deposit of such money at such times, with such
depositaries or paying agents, and upon the furnishing of such
security as may meet with the approval of the purchasers of the
bonds. The depositaries and security provided for or agreed upon,
however, shall be qualified and eligible in accordance with law.




31154.  The authority may provide in the proceedings authorizing the
issuance of bonds for the carrying of insurance as authorized by
this chapter, and the purchase and carrying of such insurance shall
thereupon be obligatory upon the authority and be paid for out of the
Toll Revenue Fund as may be specified in the proceedings.




31155.  Whenever any bonds are to be issued pursuant to this
chapter, the authority, from time to time, upon such terms and
conditions in all respects as it approves and consistently with this
chapter, may enter into indentures or agreements containing any or
all of the following provisions:
   (a) Providing for the amount, form, maturities, registration, and
transfer and interchange of the bonds and coupons and the terms and
conditions upon which they shall be issued, sold, paid, retired,
funded, and refunded.
   (b) Providing for a sinking fund for the bonds and designating a
trustee or trustees, which shall be a bank or trust company or banks
or trust companies duly qualified to do business in this state, to
receive and disburse the revenues of the toll bridge works or
improvement.
   (c) Providing that as long as any of such bonds are outstanding
there shall be raised in each year by tolls not less than the minimum
amounts required for interest, sinking fund, redemption, and reserve
requirements for the bonds, in addition to the amount needed for
current operating and maintenance expenses, including insurance
costs, required to be paid from such sources.
   (d) Such other provisions for the protection of the holders of the
bonds as the authority approves including, without limiting (a),
(b), or (c), provisions that in the event of refusal or failure to
comply with any provision of this chapter or any other applicable
law, or of any agreement made with the holders of the bonds or of any
issue thereof, the holders of a stated percentage in aggregate
principal amount of the bonds, or of such issue thereof as the case
may be, then outstanding may, in accordance with such appropriate
procedure as is provided in the agreement or indenture, appoint a
trustee to represent all the holders of the bonds, or all the holders
of the issue thereof as the case may be, in the matter of exercising
and prosecuting on their behalf such rights and remedies as are
available to them under the law. The authority shall in its absolute
discretion fix the terms and conditions upon which the trustee or
trustees shall receive, hold and disburse the revenues and may
prescribe the powers and duties of the trustee or trustees.



31156.  All benefits conferred or obligations imposed by this
chapter or by any other law with respect to making provision for the
payment, whether from tolls or other revenues received from the use
and operation of the toll tunnel or from other sources, of expenses
in connection with the operation, maintenance, and insurance of, and
the construction of approaches to, the toll tunnel, shall,
notwithstanding the retirement or discharge of any or all of the
bonds issued by the authority for the purpose of constructing the
toll tunnel, inure to and continue for the benefit of any other bonds
issued pursuant to this chapter as additional to, or funding, or
refunding the bonds originally issued.



31157.  The authority may contract loans and borrow money through
the sale of bonds of the same character as those authorized pursuant
to this chapter, from the United States or any of its departments,
agencies, or instrumentalities upon such conditions and terms as may
be agreed to. Such bonds shall be subject to all the provisions of
this chapter except the requirement that bonds be first offered at
public sale pursuant to advertisement.



31158.  If a bond issue for the acquisition or construction of the
toll tunnel is authorized and sold in whole or in part and the
authority deems it advisable and advantageous to enlarge or extend
the toll tunnel or to change the structure or design thereof in order
to afford new or greater facilities for any type or class of
traffic, the authority may issue additional bonds for the purpose of
enlarging or extending the toll tunnel or changing the structure or
design thereof in order to afford such new or greater facilities.
Such additional bonds shall be issued only if the surrender and
cancellation of all outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed can be assured
or obtained by call or by consent of the holders thereof. Such
additional bonds shall not constitute a debt or obligation of the
state or of El Dorado County but shall be bonds of the authority of
the same character and payable from the same funds as other bonds
authorized pursuant to this chapter. The pledge of the tolls and
other revenues to be received from the operation of the toll tunnel
to the payment of outstanding bonds shall not be lessened,
diminished, or affected in any way by the issuance of such additional
bonds.


31159.  If the outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed are, at the
time of issuance of the additional bonds, by their terms subject to
immediate retirement before maturity at the option of the authority,
or if the holders consent to the retirement of such bonds, the
authority may include in the issue of bonds to be sold for the
purpose of enlarging or extending the toll tunnel or changing the
design thereof, an amount of bonds sufficient to produce funds with
which to retire the outstanding bonds according to their terms.
Before any such additional bonds are delivered the authority shall
first duly call the outstanding bonds for redemption in accordance
with their terms and conditions or obtain the consent of the holders
thereof to their retirement.



31160.  Out of the proceeds derived from the sale of any such
additional bonds there shall be set aside an amount of money
sufficient to retire such outstanding bonds as may be thereafter
presented for payment. Bonds of the new authorized issue may be
delivered in part in exchange for a like principal amount of
outstanding bonds of the original issue if the holders of the
outstanding bonds to be exchanged consent thereto.



31161.  All provisions of this chapter apply with like force and
effect to the issuance of any bonds of the new authorized issue, and
the holders thereof are subrogated to all the rights and powers of
the holders of the bonds which are surrendered in exchange therefor,
except as such rights and powers are modified by the express terms of
the bonds of the new authorized issue or the proceedings authorizing
their issuance.



31162.  Whenever bonds of any kind have been issued and are
outstanding pursuant to this chapter, the authority may from time to
time or at one time issue and sell or exchange funding or refunding
bonds for the purpose of retiring, paying, funding, or refunding
either all or such part of the outstanding bonds or of one or more
issues or series thereof, as it deems advisable. Such funding or
refunding bonds shall be issued and delivered only when the issue or
series of bonds to be funded or refunded have matured, are about to
mature, are subject to retirement before maturity, or if the
outstanding bonds are not subject to retirement, the retirement
thereof has been assured or obtained by consent of the holders
thereof. Funding or refunding bonds may be delivered wholly or in
part in exchange for outstanding bonds to be funded or refunded
thereby, if the holders of the outstanding bonds to be exchanged
consent thereto.


31163.  Funding or refunding bonds shall not constitute a debt or
obligation of the state or of El Dorado County, but shall be bonds of
the authority of the same character and payable from the same funds
as other bonds authorized pursuant to this chapter. Any and all
reserve or other funds applicable to the payment of the bonds funded
or refunded, may, if so directed by the authority, be transferred to
any reserve or other funds provided with respect to the funding or
refunding bonds. The pledge of the tolls and other revenues to be
received from the operation of the toll tunnel to the payment of
outstanding bonds shall not be lessened, diminished, or affected in
any way by the issuance of such funding or refunding bonds.




31164.  Except as otherwise provided in this article, and except as
modified by the express terms of the funding or refunding bonds or
the proceedings authorizing their issuance, all the provisions of
this chapter apply to such funding or refunding bonds and to the
issuance and sale or exchange thereof, and the holders thereof shall
be subrogated to all the rights and powers of the holders of the
bonds funded or refunded thereby or surrendered in exchange therefor.



31165.  Any funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for:
   (a) The payment of the bonds to be funded or refunded thereby.
   (b) All expenses incidental to the calling, retiring, or payment
of the outstanding bonds and the issuance of the funding or refunding
bonds, including the difference in amount between the par value of
the funding or refunding bonds and any amount less than par for which
they may be sold.
   (c) Any amount necessary to be made available for the payment of
interest upon the funding or refunding bonds from the date of their
sale to the date of maturity or payment of the bonds to be funded or
refunded out of the proceeds of the sale, or the date upon which the
bonds to be funded or refunded will be paid pursuant to the call
thereof or agreement with the holders thereof.
   (d) The premium, if any, necessary to be paid in order to call or
retire the outstanding bonds.


31166.  All bonds issued pursuant to this chapter are negotiable
instruments under the law merchant.



31167.  All bonds issued pursuant to this chapter and the income
therefrom are at all times exempt from taxation, except for transfer,
inheritance, and estate taxes.



31168.  Bonds issued pursuant to this chapter shall not constitute
or be a debt, liability, or obligation of the state or El Dorado
County. The payment of both principal and interest of all bonds shall
be secured only by the tolls or other revenues collected from the
toll tunnel, other revenues and interest thereon, and sinking funds
created therefrom received by the authority, and shall be paid from
such tolls or revenues or from such other contributions or
appropriations as may be made available pursuant to this chapter.



31169.  The bond redemption and interest payments constitute a first
direct and exclusive charge and lien on all tolls and other
revenues, and interest thereon, and sinking funds created therefrom
received from the use and operation of the toll tunnel. Such tolls
and revenues together with the interest earned thereon constitute a
trust fund for the security and payment of the bonds and shall not be
used or pledged for any other purpose as long as any such bonds are
outstanding and unpaid.



31170.  While any bonds issued by the authority remain outstanding,
the powers, duties, or existence of the authority shall not be
diminished or impaired in any manner that will affect adversely the
interests and rights of the holders of the bonds.




31171.  The holder of any bond may by mandamus or other appropriate
proceeding compel the performance of any of the duties imposed upon
the authority or its officers, agents, and employees in connection
with the construction, maintenance, operation, and insurance of the
toll tunnel, in connection with the collection, deposit, investment,
application, and disbursement of all tolls and other revenues derived
from the operation and use of the toll tunnel, and in connection
with the deposit, investment, and disbursement of the proceeds
received from the sale of bonds. The enumeration of rights and
remedies in this chapter does not exclude the exercise or prosecution
of any other rights or remedies by the holders of such bonds.




31172.  The Commissioner of Financial Institutions may investigate
and ascertain the status or sufficiency as investments for savings
banks in this state of any such bonds. If upon investigation it is
determined in his or her opinion that such bonds constitute a proper
investment for savings banks, he or she shall so certify. The
Commissioner of Financial Institutions may revoke any such
certificate issued by him or her at any time in his or her
discretion.


31173.  All bonds issued by the authority pursuant to this chapter,
and which have been first certified by the Commissioner of Financial
Institutions, are legal investments for all trust funds, for the
funds of all insurance companies, commercial and savings banks, and
trust companies, and for state school funds.



31174.  Any money or funds which may by law be invested in bonds of
the state, cities, counties, or school districts in the state may be
invested in the bonds issued by the authority.



31175.  Whenever any bonds of the state, or of any city, county, or
school district in the state, may by law be used as security for the
performance of any act or the deposit of any public money the bonds
issued by the authority may be so used.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Shc > 31140-31175

STREETS AND HIGHWAYS CODE
SECTION 31140-31175



31140.  Whenever the authority determines that it is for the best
interests of the public highways in the state that the toll tunnel be
constructed and operated by the authority, based upon preliminary
estimates of the cost of construction thereof, an estimate of the
amount required to be raised for that purpose by the issuance of
revenue bonds, and a statement of the probable amount of money,
property, materials, or labor to be contributed from other sources in
aid of the construction prepared by its staff, it shall adopt a
resolution declaring that public interest and necessity require the
construction of the toll tunnel and authorizing the issuance of
revenue bonds for the purpose of obtaining funds in an amount not in
excess of that estimated to be required for the construction thereof.




31141.  All bonds authorized pursuant to this chapter shall be
issued in the name of the authority and shall constitute obligations
of the authority only. Such bonds shall be identified as toll tunnel
bonds and shall contain a recital on the face thereof that the
payment or redemption of the bonds and the payment of the interest
thereon is secured by a direct and exclusive charge and lien upon the
tolls and other revenues of any nature whatever received from the
operation of the toll tunnel, and that neither the payment of the
principal or any part thereof or any interest thereon, constitutes a
debt, liability, or obligation of the state or of El Dorado County.



31142.  The authority shall determine the form, conditions, and
denominations of all bonds, the dates which the bonds to be sold
shall bear, and the interest rate thereon which shall not exceed 6
percent per annum. The rate of interest need not be uniform for all
bonds of the same authorized issue. Principal and interest of the
bonds shall be payable at such places as are fixed and determined by
the authority. The bonds may contain provisions for registration as
to principal only and as to both principal and interest. The bonds
shall be issued in coupon form with interest payable at such times as
are determined by the authority, and shall mature at such times and
in such amounts as the authority prescribes.


31143.  The authority may provide for the retirement of the bonds at
any time or times prior to their maturity, in such manner and upon
payment of such premiums as may be fixed and determined in the
proceedings providing for the issuance of the bonds and referred to
therein.



31144.  All bonds shall be signed by the treasurer and countersigned
by the chairman. The signatures of the treasurer and the chairman
may be by facsimile, but said bonds shall be authenticated by such
signatures as the bond resolution or indenture may require. All
interest coupons shall bear the facsimile signature of the treasurer.
In case any officer whose signature or countersignature appears on
the bonds or coupons ceases to hold his office before the delivery of
the bonds to the purchaser, his signature or countersignature is
nevertheless valid and sufficient for all purposes the same as if he
had remained in office until the delivery of the bonds.



31145.  All revenue bonds authorized pursuant to this chapter may be
issued and sold by the authority from time to time and in such
amounts as the authority deems necessary to provide sufficient funds
for the purposes for which the bonds were authorized, including the
payment of interest on the bonds during the period of actual
construction, and for a period of six months thereafter, and the
proceeds thereof are available for those purposes.



31146.  Bonds authorized pursuant to this chapter may be sold below
the par or face value thereof, but the sale price shall not be less
than that which will yield the purchaser 6 percent a year according
to standard tables of bond values, and shall include the interest
which has accrued thereon up to the date of delivery of the bonds.




31147.  Successive issues of bonds within the limits of the original
authorization for the issuance of bonds for the acquisition or
construction of the toll tunnel shall have equal preference with
respect to the redemption thereof and the payment of interest
thereon, but the authority may fix different maturity dates, serially
or otherwise, for successive issues under any one original
authorization.



31148.  All bonds issued and sold pursuant to this chapter shall be
sold on sealed proposals to the highest and best bidder after such
advertising for bids as the authority deems proper. The authority may
reject any and all bids submitted and may thereafter sell the bonds
so advertised for sale at private sale under such terms and
conditions as it deems most advantageous to its own interest, but the
bonds shall not be sold at a price below that of the best bid which
was rejected.



31149.  Temporary or interim bonds, certificates, or receipts,
signed by the treasurer, of any denomination whatever and with or
without coupons attached thereto, may be issued and delivered until
the definitive bonds are executed and available for delivery.




31150.  The purchase price of all bonds issued pursuant to this
chapter shall be paid to the treasurer for the account of the
authority.


31151.  The authority may include in the proceedings authorizing the
issuance of bonds any provisions not inconsistent with this chapter
which limit, restrict, or regulate the holding, deposit, investment,
and application of money consisting of the proceeds from the sale of
the bonds or the tolls and other revenues received from the operation
of the toll tunnel, and such provisions shall constitute a contract
with the holders of the bonds and be binding upon the authority as
long as the bonds are outstanding.



31152.  The authority may provide in the proceedings authorizing the
issuance of bonds for the setting up of one or more reserve funds
out of the proceeds of the bonds or out of the tolls and other
revenues not needed for the payment of interest on the bonds and the
principal of the bonds as they currently mature, and for the
preservation and continuance thereof in a manner to be provided
therein, and may also require the immediate application of all
surplus money in any such toll revenue fund to the retirement, by
call or purchase, of the bonds prior to maturity in such manner and
upon such terms and the payment of such premiums as the authority
deems advisable.



31153.  The authority may provide in the proceedings authorizing the
issuance of bonds, or may otherwise agree with the purchasers of
bonds, regarding the deposit of all money constituting the
Acquisition and Construction Fund and the Toll Revenue Fund, and may
provide for the deposit of such money at such times, with such
depositaries or paying agents, and upon the furnishing of such
security as may meet with the approval of the purchasers of the
bonds. The depositaries and security provided for or agreed upon,
however, shall be qualified and eligible in accordance with law.




31154.  The authority may provide in the proceedings authorizing the
issuance of bonds for the carrying of insurance as authorized by
this chapter, and the purchase and carrying of such insurance shall
thereupon be obligatory upon the authority and be paid for out of the
Toll Revenue Fund as may be specified in the proceedings.




31155.  Whenever any bonds are to be issued pursuant to this
chapter, the authority, from time to time, upon such terms and
conditions in all respects as it approves and consistently with this
chapter, may enter into indentures or agreements containing any or
all of the following provisions:
   (a) Providing for the amount, form, maturities, registration, and
transfer and interchange of the bonds and coupons and the terms and
conditions upon which they shall be issued, sold, paid, retired,
funded, and refunded.
   (b) Providing for a sinking fund for the bonds and designating a
trustee or trustees, which shall be a bank or trust company or banks
or trust companies duly qualified to do business in this state, to
receive and disburse the revenues of the toll bridge works or
improvement.
   (c) Providing that as long as any of such bonds are outstanding
there shall be raised in each year by tolls not less than the minimum
amounts required for interest, sinking fund, redemption, and reserve
requirements for the bonds, in addition to the amount needed for
current operating and maintenance expenses, including insurance
costs, required to be paid from such sources.
   (d) Such other provisions for the protection of the holders of the
bonds as the authority approves including, without limiting (a),
(b), or (c), provisions that in the event of refusal or failure to
comply with any provision of this chapter or any other applicable
law, or of any agreement made with the holders of the bonds or of any
issue thereof, the holders of a stated percentage in aggregate
principal amount of the bonds, or of such issue thereof as the case
may be, then outstanding may, in accordance with such appropriate
procedure as is provided in the agreement or indenture, appoint a
trustee to represent all the holders of the bonds, or all the holders
of the issue thereof as the case may be, in the matter of exercising
and prosecuting on their behalf such rights and remedies as are
available to them under the law. The authority shall in its absolute
discretion fix the terms and conditions upon which the trustee or
trustees shall receive, hold and disburse the revenues and may
prescribe the powers and duties of the trustee or trustees.



31156.  All benefits conferred or obligations imposed by this
chapter or by any other law with respect to making provision for the
payment, whether from tolls or other revenues received from the use
and operation of the toll tunnel or from other sources, of expenses
in connection with the operation, maintenance, and insurance of, and
the construction of approaches to, the toll tunnel, shall,
notwithstanding the retirement or discharge of any or all of the
bonds issued by the authority for the purpose of constructing the
toll tunnel, inure to and continue for the benefit of any other bonds
issued pursuant to this chapter as additional to, or funding, or
refunding the bonds originally issued.



31157.  The authority may contract loans and borrow money through
the sale of bonds of the same character as those authorized pursuant
to this chapter, from the United States or any of its departments,
agencies, or instrumentalities upon such conditions and terms as may
be agreed to. Such bonds shall be subject to all the provisions of
this chapter except the requirement that bonds be first offered at
public sale pursuant to advertisement.



31158.  If a bond issue for the acquisition or construction of the
toll tunnel is authorized and sold in whole or in part and the
authority deems it advisable and advantageous to enlarge or extend
the toll tunnel or to change the structure or design thereof in order
to afford new or greater facilities for any type or class of
traffic, the authority may issue additional bonds for the purpose of
enlarging or extending the toll tunnel or changing the structure or
design thereof in order to afford such new or greater facilities.
Such additional bonds shall be issued only if the surrender and
cancellation of all outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed can be assured
or obtained by call or by consent of the holders thereof. Such
additional bonds shall not constitute a debt or obligation of the
state or of El Dorado County but shall be bonds of the authority of
the same character and payable from the same funds as other bonds
authorized pursuant to this chapter. The pledge of the tolls and
other revenues to be received from the operation of the toll tunnel
to the payment of outstanding bonds shall not be lessened,
diminished, or affected in any way by the issuance of such additional
bonds.


31159.  If the outstanding bonds issued for the acquisition or
construction of the toll tunnel as originally designed are, at the
time of issuance of the additional bonds, by their terms subject to
immediate retirement before maturity at the option of the authority,
or if the holders consent to the retirement of such bonds, the
authority may include in the issue of bonds to be sold for the
purpose of enlarging or extending the toll tunnel or changing the
design thereof, an amount of bonds sufficient to produce funds with
which to retire the outstanding bonds according to their terms.
Before any such additional bonds are delivered the authority shall
first duly call the outstanding bonds for redemption in accordance
with their terms and conditions or obtain the consent of the holders
thereof to their retirement.



31160.  Out of the proceeds derived from the sale of any such
additional bonds there shall be set aside an amount of money
sufficient to retire such outstanding bonds as may be thereafter
presented for payment. Bonds of the new authorized issue may be
delivered in part in exchange for a like principal amount of
outstanding bonds of the original issue if the holders of the
outstanding bonds to be exchanged consent thereto.



31161.  All provisions of this chapter apply with like force and
effect to the issuance of any bonds of the new authorized issue, and
the holders thereof are subrogated to all the rights and powers of
the holders of the bonds which are surrendered in exchange therefor,
except as such rights and powers are modified by the express terms of
the bonds of the new authorized issue or the proceedings authorizing
their issuance.



31162.  Whenever bonds of any kind have been issued and are
outstanding pursuant to this chapter, the authority may from time to
time or at one time issue and sell or exchange funding or refunding
bonds for the purpose of retiring, paying, funding, or refunding
either all or such part of the outstanding bonds or of one or more
issues or series thereof, as it deems advisable. Such funding or
refunding bonds shall be issued and delivered only when the issue or
series of bonds to be funded or refunded have matured, are about to
mature, are subject to retirement before maturity, or if the
outstanding bonds are not subject to retirement, the retirement
thereof has been assured or obtained by consent of the holders
thereof. Funding or refunding bonds may be delivered wholly or in
part in exchange for outstanding bonds to be funded or refunded
thereby, if the holders of the outstanding bonds to be exchanged
consent thereto.


31163.  Funding or refunding bonds shall not constitute a debt or
obligation of the state or of El Dorado County, but shall be bonds of
the authority of the same character and payable from the same funds
as other bonds authorized pursuant to this chapter. Any and all
reserve or other funds applicable to the payment of the bonds funded
or refunded, may, if so directed by the authority, be transferred to
any reserve or other funds provided with respect to the funding or
refunding bonds. The pledge of the tolls and other revenues to be
received from the operation of the toll tunnel to the payment of
outstanding bonds shall not be lessened, diminished, or affected in
any way by the issuance of such funding or refunding bonds.




31164.  Except as otherwise provided in this article, and except as
modified by the express terms of the funding or refunding bonds or
the proceedings authorizing their issuance, all the provisions of
this chapter apply to such funding or refunding bonds and to the
issuance and sale or exchange thereof, and the holders thereof shall
be subrogated to all the rights and powers of the holders of the
bonds funded or refunded thereby or surrendered in exchange therefor.



31165.  Any funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for:
   (a) The payment of the bonds to be funded or refunded thereby.
   (b) All expenses incidental to the calling, retiring, or payment
of the outstanding bonds and the issuance of the funding or refunding
bonds, including the difference in amount between the par value of
the funding or refunding bonds and any amount less than par for which
they may be sold.
   (c) Any amount necessary to be made available for the payment of
interest upon the funding or refunding bonds from the date of their
sale to the date of maturity or payment of the bonds to be funded or
refunded out of the proceeds of the sale, or the date upon which the
bonds to be funded or refunded will be paid pursuant to the call
thereof or agreement with the holders thereof.
   (d) The premium, if any, necessary to be paid in order to call or
retire the outstanding bonds.


31166.  All bonds issued pursuant to this chapter are negotiable
instruments under the law merchant.



31167.  All bonds issued pursuant to this chapter and the income
therefrom are at all times exempt from taxation, except for transfer,
inheritance, and estate taxes.



31168.  Bonds issued pursuant to this chapter shall not constitute
or be a debt, liability, or obligation of the state or El Dorado
County. The payment of both principal and interest of all bonds shall
be secured only by the tolls or other revenues collected from the
toll tunnel, other revenues and interest thereon, and sinking funds
created therefrom received by the authority, and shall be paid from
such tolls or revenues or from such other contributions or
appropriations as may be made available pursuant to this chapter.



31169.  The bond redemption and interest payments constitute a first
direct and exclusive charge and lien on all tolls and other
revenues, and interest thereon, and sinking funds created therefrom
received from the use and operation of the toll tunnel. Such tolls
and revenues together with the interest earned thereon constitute a
trust fund for the security and payment of the bonds and shall not be
used or pledged for any other purpose as long as any such bonds are
outstanding and unpaid.



31170.  While any bonds issued by the authority remain outstanding,
the powers, duties, or existence of the authority shall not be
diminished or impaired in any manner that will affect adversely the
interests and rights of the holders of the bonds.




31171.  The holder of any bond may by mandamus or other appropriate
proceeding compel the performance of any of the duties imposed upon
the authority or its officers, agents, and employees in connection
with the construction, maintenance, operation, and insurance of the
toll tunnel, in connection with the collection, deposit, investment,
application, and disbursement of all tolls and other revenues derived
from the operation and use of the toll tunnel, and in connection
with the deposit, investment, and disbursement of the proceeds
received from the sale of bonds. The enumeration of rights and
remedies in this chapter does not exclude the exercise or prosecution
of any other rights or remedies by the holders of such bonds.




31172.  The Commissioner of Financial Institutions may investigate
and ascertain the status or sufficiency as investments for savings
banks in this state of any such bonds. If upon investigation it is
determined in his or her opinion that such bonds constitute a proper
investment for savings banks, he or she shall so certify. The
Commissioner of Financial Institutions may revoke any such
certificate issued by him or her at any time in his or her
discretion.


31173.  All bonds issued by the authority pursuant to this chapter,
and which have been first certified by the Commissioner of Financial
Institutions, are legal investments for all trust funds, for the
funds of all insurance companies, commercial and savings banks, and
trust companies, and for state school funds.



31174.  Any money or funds which may by law be invested in bonds of
the state, cities, counties, or school districts in the state may be
invested in the bonds issued by the authority.



31175.  Whenever any bonds of the state, or of any city, county, or
school district in the state, may by law be used as security for the
performance of any act or the deposit of any public money the bonds
issued by the authority may be so used.