SECTIONS 13425-13433

13425.  Applications for guarantees for local agency bonds underthis chapter shall include: (a) A description of the proposed facilities. (b) A financing plan for the proposed facilities, including theamount of debt and maximum term to maturity of the proposed localagency bond issue and identification of sources of revenue that willbe dedicated to payment of principal and interest on the bonds. (c) Other information as required by the state board. The state board may provide that the application may be combinedwith applications for any other source of funds administered by thestate board.13426.  The state board, subject to approval by the Director ofFinance, may agree to provide a guarantee pursuant to this articlefor all or a specified part of the proposed local agency bond issueupon making, after consultation with the State Department of PublicHealth, all of the following determinations: (a) The facilities proposed by an applicant are necessary to thehealth or welfare of the inhabitants of the state and are consistentwith water quality control plans adopted by regional boards. (b) The proposed facilities meet the needs of the applicant. (c) The proposed bond issue and plan repayment are sound andfeasible. (d) In the case of facilities proposed under paragraph (2) ofsubdivision (c) of Section 13400, the facilities will producerecycled water and the applicant has adopted a feasible program forthe use of the facilities. The state board may adopt criteria forranking and setting priorities among applicants for those guarantees.13427.  No guarantee shall be extended to any applicant unless itexecutes an agreement with the state board under which the applicantagrees to the following provisions: (a) To proceed expeditiously with, and complete, the proposedproject. (b) To commence operation of the project on completion, and toproperly operate and maintain the work in accordance with applicableprovisions of law. (c) To issue bonds and to levy fines, charges, assessments, ortaxes to pay the principal of, and interest on, the bonds asdescribed in the application. (d) To diligently and expeditiously collect those levies,including timely exercise of available legal remedies in the event ofdelinquency or default. (e) To act in accordance with such other provisions as the stateboard may require.13428.  Notwithstanding Section 13340 of the Government Code, themoney in the Clean Water Bond Guarantee Fund, which is herebycreated, is continuously appropriated to the state board withoutregard to fiscal years for the purposes of this chapter.13429.  Money in the Clean Water Bond Guarantee Fund not needed formaking payments on guaranteed bonds pursuant to this chapter shall beinvested pursuant to law. All proceeds of the investment shall bedeposited in that fund to the extent permitted by federal law.13430.  The state board's authorization to guarantee bonds underthis article shall be limited to bonds with a total principal amountof not more than 10 times the amount in the Clean Water BondGuarantee Fund at the time the state board determines to extend eachguarantee pursuant to Section 13426.13431.  Under no circumstances shall the amount paid out as a resultof bond guarantees extended pursuant to this article exceed theamount in the Clean Water Bond Guarantee Fund. This article does notexpress or imply any commitment by the state board or any otheragency of the state to pay any money or levy any charge or tax orotherwise exercise its faith and credit on behalf of any local agencyor bondholder beyond the funds in the Clean Water Bond GuaranteeFund.13432.  The state board may charge an annual fee not to exceedone-tenth of 1 percent of the principal amount of each bond issuethat it guarantees for guarantee coverage. The state board may chargea lesser amount. The proceeds of any fee shall be paid into theClean Water Bond Guarantee Fund.13433.  The state board shall, by regulation, prescribe rules andprocedures for all of the following: (a) To pay money from the Clean Water Bond Guarantee Fund to aninsured local agency or bondholder in the event that the amount inthe local agency's bond reserve fund falls below a minimum amount, orin the event of failure by the local agency to pay the principal of,or interest on, an insured bond issue on time, as the state boardmay require. (b) To require, by court action if necessary, a local agency toraise sewer service charges, levy additional assessments, collectcharges or assessments, or foreclose or otherwise sell property asneeded to prevent a reduction in the local agency's bond reservefund, or to prevent default, or to collect funds to repay to the fundany payments made pursuant to subdivision (a).