90010. This article may be cited as "The State University Revenue
Bond Act of 1947."
90011. (a) The following terms wherever used or referred to in this
article, or in any indenture entered into pursuant to this article,
shall have the following meanings, respectively, unless a different
meaning appears from the context:
(1) "Board" means the Trustees of the California State University.
(2) "Bonds" or "revenue bonds" means the written evidence of any
obligation, other than revenue bond anticipation notes, issued by the
board, payment of which is secured by a pledge of revenues or any
part of revenues, as provided in this article, in order to obtain
funds with which to carry out the purposes of this article,
irrespective of the form of the obligations.
(3) The "holder of bonds" or "bondholder" or any similar term
means any person who shall be the bearer of any outstanding revenue
bond or bond registered to bearer or not registered or the registered
owner of any outstanding revenue bond or bond that shall at the time
be registered other than to the bearer.
(4) "Indenture" means an agreement entered into by the board
pursuant to which revenue bonds are issued, regardless of whether the
agreement is expressed in the form of a resolution of the board or
by other instrument.
(5) "Notes" and "revenue bond anticipation notes" mean the written
evidence of any obligation, including commercial paper notes, issued
by the board, pursuant to Section 90013, in anticipation of the sale
of revenue bonds, for the purpose of obtaining funds to carry out
the purposes of this article.
(6) "Person" includes any individual, firm, corporation,
association, copartnership, trust, business trust, receiver, trustee,
or conservator for any thereof, but does not include this state or
any public corporation, political subdivision, city, county,
district, or any agency thereof or of this state.
(7) "Project" means any one or more dormitories or other housing
facilities, boarding facilities, student union or activity
facilities, vehicle parking facilities, alternative transportation
programs, or any other auxiliary or supplementary facilities for
individual or group accommodation, owned or operated or authorized to
be acquired, constructed, furnished, equipped, and operated by the
board for use by students, faculty members, or other employees of any
one or more campuses of the California State University, or a
combination of those facilities, which may include facilities already
completed and facilities authorized for future completion, or any
other facilities designated by the board as a project in providing
for the issuance of revenue bonds or notes.
(8) "Revenues" mean and include any and all fees, rates, rentals,
and other charges received or receivable in connection with, and any
and all other incomes and receipts of whatever kind and character
derived by, the board from the operation of, or arising from, a
project, including any revenue that may have been, or may be,
impounded or deposited in any fund in the State Treasury created by
this article or in any other fund or account pursuant to law for the
security of any notes or bonds issued hereunder, or for the purpose
of providing for the payment thereof, or the interest thereon.
(9) "State university" and "campus of the California State
University" means any of the institutions included within the
California State University, as listed in Section 89001.
(b) As used in this article:
(1) The present tense includes the past and future tenses, and the
future tense includes the present tense.
(2) The masculine gender includes the feminine and neuter.
(3) The singular number includes the plural, and the plural
includes the singular.
(4) "Shall" is mandatory, and "may" is permissive.
90012. The board, for the purposes of this article, has power and
is hereby authorized, in addition to and amplification of all other
powers conferred upon the board by the Constitution of the State of
California or by any statute of the State of California:
(a) To acquire, subject to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code), by grant, purchase, gift, devise, or lease, and to
hold and use, any real or personal property necessary, convenient, or
useful for the carrying on of any of its powers pursuant to this
article.
(b) To construct, operate, and control any project.
(c) To fix rates, rents, or other charges for the use of any
project acquired, constructed, equipped, furnished, operated or
maintained by the board, or for services rendered in connection
therewith, and to alter, change, or modify the same at its pleasure,
subject to any contractual obligation that may be entered into by the
board with respect to the fixing of rates, rents, or charges.
(d) To enter into covenants to increase rates or charges from time
to time as may be necessary pursuant to any contract or agreement
with the holders of any bonds of the board.
(e) At any time and from time to time, to issue revenue bonds in
order to raise funds for the purpose of establishing any project or
of acquiring lands for any project, or of acquiring, constructing,
improving, equipping, furnishing, financing, or refinancing any
project, including payment of principal and interest on revenue bond
anticipation notes, or for any combination of these purposes, which
bonds may be secured as provided in this article.
(f) At any time, and from time to time, in connection with the
financing or refinancing of any project, to loan or advance proceeds
of revenue bonds or revenue bond anticipation notes to any person or
state or local governmental entity, and to enter into loan
agreements, leases, installation purchase agreements, conditional
sales contracts, and similar financing instruments with the recipient
of that loan or advance, all upon terms and conditions determined by
the board.
(g) At any time and from time to time, to issue revenue bond
anticipation notes pursuant to Section 90013.
(h) To adopt rules and regulations as may be necessary to enable
the board to exercise the powers and to perform the duties conferred
or imposed upon the board by this article.
(i) Nothing contained in this section or elsewhere in this article
shall be construed directly or by implication to be in derogation of
or in limitation of powers conferred upon or existing in the board
by the Constitution or statutes of this state.
90013. (a) The board may issue revenue bond anticipation notes, in
anticipation of the sale of revenue bonds. Before issuing any of
these notes, the board shall, by resolution, authorize their
issuance, declare the purpose for which the proceeds of the notes
shall be expended, and specify the maximum amount of notes to be
issued for that purpose.
(b) Revenue bond anticipation notes shall bear interest at the
fixed or variable rate or rates determined by the board, not
exceeding 12 percent per annum, payable in the time, form, and manner
set forth in the indenture for the notes, and shall mature on the
date or dates determined by the board and set forth in the resolution
or indenture authorizing their issuance.
(c) The proceeds from the sale of notes shall be used only for the
purposes for which the proceeds of the sale of bonds may be used in
anticipation whereof the notes are issued.
(d) All notes issued, including renewal notes, and the interest
thereon shall be payable from the proceeds of the sale of the bonds,
the revenues of the project, any appropriations made for that purpose
or all of these sources, and not otherwise, except that if the sale
of the bonds has not occurred prior to the maturity of the notes
issued in anticipation thereof, the board may issue renewal notes to
pay the notes then maturing. No renewal notes shall be issued after
the sale of the bonds in anticipation of which the original note was
issued.
(e) Revenue bond anticipation notes may be secured by a pledge of,
and lien upon, the proceeds of the sale of bonds, the revenues of
the project, and any other legally available funds.
(f) A resolution or indenture authorizing the issuance of revenue
bond anticipation notes may include provisions deemed necessary or
advisable by the board for the security of the notes issued
thereunder, and may include any and all provisions authorized to be
included in indentures by this article.
90014. Notes authorized to be issued under this article shall be
sold by the Treasurer, for cash, in the manner that the Treasurer
shall be directed by a resolution requesting the sale adopted by the
board. Notes in the form of commercial paper notes shall be sold in
the manner specified in the indenture for the notes.
90015. The validity of the authorization and issuance of any
revenue bonds or revenue bond anticipation notes by the board is not
dependent on nor affected in any way by:
(a) Proceedings taken by the board for the acquisition,
construction or completion of any project or any part thereof.
(b) Any contracts made by the board in connection with the
acquisition, construction or completion of any project.
(c) The failure to complete any project for which bonds or notes
are authorized to be issued.
90016. The board shall issue revenue bonds and revenue bond
anticipation notes in its name and as its obligation, but no bond or
note issued or sold pursuant to this article shall be or become a
lien, charge, or liability against the State of California or against
the board or against the property or funds of either, except, in the
case of revenue bonds, to the extent of the pledge of revenues or
part of revenues of the project, as may be provided by the indenture
pursuant to which revenue bonds are issued, and, in the case of
notes, to the extent of the pledge of revenues of the project and
proceeds of the sale of bonds, as may be provided in the resolution
or indenture authorizing the issuance of the notes. Each of these
bonds and notes issued by the board shall contain a recital on the
face thereof, stating that neither the payment of the principal nor
any part thereof, nor any interest thereon, constitutes a debt,
liability, or obligation of the State of California.
90017. The board shall determine the time, form, and manner of the
issuance of revenue bonds and revenue bond anticipation notes.
90018. The board may enter into indentures providing for the
aggregate principal amount, date or dates, maturities, interest
rates, denominations, form, registration, transfer and interchange of
any revenue bonds and coupons issued pursuant to this article, and
the terms and conditions on which the same shall be executed, issued,
secured, sold, paid, redeemed, funded, and refunded. Reference on
the face of the bonds to the indenture by its date of adoption, or
the apparent date on the face thereof, is sufficient to incorporate
all of the provisions thereof and of this article into the body of
the bonds and their appurtenant coupons. Each taker and subsequent
holder of the bonds or coupons, whether the coupons are attached to
or detached from the bonds, has recourse to all of the provisions of
the indenture and of this article, and is bound thereby.
90019. An indenture pursuant to which bonds are issued may include
any and all of the covenants and agreements on the part of the board
as the board deems necessary or advisable for the better security of
the bonds issued thereunder.
90020. An indenture may provide that payments of principal and
interest of bonds shall be secured by all or by part of revenues.
90021. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay or cause to be paid
punctually the principal of all such bonds and the interest thereon
on the date or dates, or at the place or places, and in the manner
mentioned in such bonds and in the coupons appertaining thereto in
accordance with such indenture.
90022. An indenture may include a clause relating to the bonds
issued thereunder, requiring the board to operate the project
continuously, to the extent practicable under conditions as they may
from time to time exist, in an efficient and economical manner.
90023. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to make all necessary repairs,
renewals and replacements to any project, and to keep the project at
all times in good repair, working order and condition.
90024. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to preserve and protect the
security of the bonds and the rights of the holders thereof and to
warrant and defend such rights.
90025. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay and discharge or cause
to be paid and discharged all lawful claims for labor, materials and
supplies or other charges which, if unpaid, might become a lien or
charge upon the revenues, or any part thereof, of any project
acquired, constructed or completed from the proceeds of the sale of
the bonds, or upon any physical properties, or which might impair the
security of the bonds.
90026. An indenture may include a clause relating to the bonds
issued thereunder which limits, restricts, or prohibits any right,
power or privilege of the board to mortgage or otherwise encumber,
sell, lease or dispose of any improvements constructed from the
proceeds of the bonds, or to enter into any lease or agreement which
impairs or impedes the operation of a project, or any part thereof,
necessary to secure adequate revenues or which otherwise impairs or
impedes the rights of the holders of the bonds with respect to such
revenues.
90027. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to fix, prescribe, and collect
rates, rentals, or other charges in connection with the services and
facilities furnished from the project acquired, constructed, or
purchased from part or all of the proceeds of the bonds, or from the
revenues securing the bonds, sufficient to pay the principal of and
interest on the bonds as they become due and payable, together with
additional sums that may be required for any fund created by this
article, for the further security of the bonds or as a depreciation
charge or other charge in connection with the project.
90028. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to hold or cause to be held in
trust the revenues or any part of revenues pledged to the payment of
such bonds and the interest thereon, or to any reserve or other fund
created by this article for the further protection of the bonds, and
to apply such revenues or any part of revenues or cause them to be
applied only as provided in the indenture.
90029. An indenture may include a clause defining the power of the
board in applying the proceeds of the sale of any issue of bonds for
the acquiring, constructing, or completing of any project or any part
thereof.
90030. An indenture may include a clause limiting the power of the
board to issue additional bonds for the purpose of acquiring,
constructing or completing any project or any part thereof.
90031. An indenture may include a clause requiring, specifying or
limiting the kind, amount and character of insurance to be maintained
by the board on any project, or any part thereof, and the use and
disposition of the proceeds of any such insurance thereafter
collected.
90032. An indenture may include a clause providing the events of
default and the terms and conditions upon which any or all of the
bonds of the board then or thereafter issued may become or be
declared due and payable prior to maturity, and the terms and
conditions upon which such declaration and its consequences may be
waived.
90033. An indenture may include a clause designating the rights,
limitations, powers and duties arising upon breach by the board of
any of the covenants, conditions, or obligations contained in any
indenture.
90034. An indenture may include a clause prescribing a procedure by
which the terms and conditions of the indenture may be subsequently
amended or modified with the consent of the board and the vote or
written assent of the holders of a specified principal amount or
specified proportion of the bonds issued and outstanding. The clause
may provide for meetings of bondholders and for the manner in which
the consent of the bondholders may be given. The clause shall
specifically state the effect of the amendment or modification upon
the rights of the holders of all of the bonds and interest coupons
appertaining thereto, whether attached thereto or detached therefrom.
With respect to any clause providing for the modification or
amendment of an indenture, the board may agree that bonds held by the
Treasurer, the United States or any instrumentality thereof, or the
State of California or any political subdivision thereof (including
every municipal corporation, district, public corporation, board or
agency of any kind or class) shall not be counted as outstanding
bonds, or be entitled to vote or assent, but shall, nevertheless, be
subject to any modification or amendment of this type.
90035. An indenture may include a clause or clauses providing for
such other acts and matters as may be necessary or convenient or
desirable in order better to secure the bonds or to make the bonds
more marketable.
90036. The State Treasurer shall act as trustee for the board and
the holders of bonds issued hereunder, and the board may authorize
the trustee to act on behalf of the holders of the bonds, or any
stated percentage thereof, and to exercise and prosecute on behalf of
the holders of the bonds such rights and remedies as may be
available to the holders. The board may provide in the indenture for
the deposit of all revenues received from the project with the
trustee to be held in a separate account in the California State
University Dormitory Revenue Fund created by this article. The money
in the fund shall be disbursed only as provided in the indenture.
90037. The board shall prescribe the duties and powers of the
trustee with respect to the issuance, authentication, sale and
delivery of the bonds and the payment of principal and interest
thereof, the redemption of the bonds, the registration and discharge
from registration of the bonds, and the management of any sinking
fund or other funds provided as security for the bonds.
90038. The board may provide for one or several issues of bonds and
may issue bonds in series or may divide any issue into one or more
divisions and fix different maturities or dates of those bonds,
different rates of interest, or prescribe different terms and
conditions for the bonds of the several series or divisions. It is
not necessary that all bonds of the same authorized issue be of the
same kind or character, have the same security, or be of the same
interest rate, but the terms thereof shall in each case be provided
for by the board, at or prior to the issue thereof.
90039. Bonds may be issued as coupon bonds or as registered bonds.
The board may provide for the interchange of coupon bonds for
registered bonds and registered bonds for coupon bonds, and may
provide that the bonds shall be registered as to principal only, or
as to both principal and interest, or otherwise as the board may
determine.
90040. Bonds shall bear interest at a fixed or variable rate of not
to exceed 12 percent per annum, payable in the time, form, and
manner set forth in the indenture for the bonds.
90041. Notwithstanding the provisions of Sections 90013, 90040, and
90048, the rate of interest which bonds or notes may bear and the
yield resulting to the purchaser thereof may exceed the maximum rates
specified in said sections to the extent of any debt service grant
applicable to such interest which the United States of America has
agreed, pursuant to any federal statute, to pay with respect to the
bonds or notes.
90042. Bonds may be callable upon any terms, conditions, and upon
any notice as the board may determine, and upon the payment of the
premium as may be fixed by the board in the proceedings for the
issuance of the bonds. No bond is subject to call or redemption prior
to its fixed maturity date unless the right to exercise the call is
expressly stated on the face of the bond.
90043. The board may provide for the payment of the principal and
interest of bonds at any place within or without the State of
California, and in specified coin or currency of the United States.
90044. The board may provide for the execution and authentication
of bonds and notes by the manual, lithographed or printed facsimile
signature of officers of the board and, in the case of bonds, by
additional authentication by the Treasurer as trustee. If any of the
officers whose signatures or countersignatures appear upon the notes,
bonds or coupons cease to be officers before the delivery of the
notes, bonds or coupons, their signatures or countersignatures are
nevertheless valid and of the same force and effect as if the
officers had remained in office until the delivery of the notes,
bonds or coupons.
90045. Bonds shall bear dates prescribed by the board. Bonds may be
serial bonds or sinking fund bonds with those maturities as the
board may determine. No bond by its terms shall mature in more than
50 years from its own date and, in the event any authorized issue is
divided into two or more series or divisions, the maximum maturity
date herein authorized shall be calculated from the date on the face
of each bond separately, irrespective of the fact that different
dates may be prescribed for the bonds of each separate series or
division of any authorized issue.
90046. Immediately after the adoption of a resolution by the board
directing the preparation of any bonds or notes authorized under this
article, the Treasurer shall prepare the requisite number of
suitable bonds or notes of the denominations, and in accordance with
the specifications contained in such resolution.
90047. When the bonds authorized to be issued under this article
are duly executed, they shall be sold by the Treasurer, for cash, in
those parcels and numbers as the Treasurer shall be directed by a
resolution adopted by the board. Before offering any of the bonds for
sale, the Treasurer shall detach therefrom all coupons, if any, that
have matured or will mature before the day fixed for the sale. Bonds
in the form of commercial paper notes shall be sold in the manner
specified in the indenture for the bonds.
90048. Bonds and notes may be sold at either public or private
sale. The board may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds or notes. The Treasurer,
when authorized by resolution of the board may sell bonds and notes
at less than their par or face value, but no bond or note may be sold
at a price below the par or face value thereof which would result in
a sale price yielding to the purchaser an average of more than 12
percent per annum, payable semiannually, according to standard tables
of bond values.
90049. The board may provide for the security of bonds. The board
may use and expend all or any part of any funds or proceeds of any
property owned by it, whether received by gift, appropriation or
otherwise, if not restricted as to the use of such funds or proceeds
of property by the terms of any gift or trust or provision of law for
the redemption of bonds issued pursuant to the provisions of this
article and the payment of interest due thereon.
90050. All costs and expenses incident to the issuance and sale of
notes may be paid out of the proceeds of the sale of the notes. All
costs and expenses incident to the issuance and sales of bonds and
all costs and expenses incident to the redemption of revenue bond
anticipation notes retired with proceeds from the sale of the bonds
may be paid out of the proceeds of the sale of the bonds. Interest on
bonds may be paid out of the proceeds of the sale of the bonds
during the actual construction of any project for the acquisition,
construction or completion of which the bonds have been issued, and
for a period of not to exceed two (2) years thereafter as provided
for in the indenture.
90051. The board may provide that notes or bonds and the interest
thereon shall be secured by all or by part of revenues of a project
upon the basis of which the notes or bonds are issued or authorized
to be issued, and shall constitute a lien upon the revenues of the
project as may be provided for in the notes or in any indenture.
90052. Pending the actual issuance or delivery of revenue bonds,
the board may issue temporary or interim bonds, certificates or
receipts of any denomination whatsoever, and with or without coupons,
to be exchanged for definitive bonds when ready for delivery.
90053. The board may provide for the replacement of lost, destroyed
or mutilated notes, bonds, and coupons.
90054. Bonds and notes issued pursuant to the provisions of this
article and the interest or income therefrom are exempt from all
taxation in this state other than gift, inheritance and estate taxes.
90055. Notwithstanding any other provision of law, all notes and
bonds hereafter sold and delivered pursuant to the provisions of this
article are legal investments for all trust funds and for the funds
of all insurance companies, banks, both commercial and savings, trust
companies, and the state school funds, and may also be used as
security for the deposit of public moneys in banks in this state.
Such bonds are also legal investments for any public or private funds
which may be invested in county, municipal or school district bonds,
and may be deposited as security for the performance of any act
whenever the bonds of any county, municipality or school district may
be so deposited.
90056. The board may provide for the issuance, sale, or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued under the provisions of this article. All provisions of
this article applicable to the issuance of revenue bonds are
applicable to the funding or refunding bonds and to the issuance,
sale or exchange thereof.
90057. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all bonds to be
funded or refunded thereby, and in addition for the payment of all
expenses incident to the calling, retiring or paying of such
outstanding bonds, and the issuance of such funding or refunding
bonds. These expenses include the difference in amount between the
par value of the funding or refunding bonds and any amount less than
par for which the funding or refunding bonds are sold, any amount
necessary to be made available for the payment of interest upon such
funding or refunding bonds from the date of sale thereof to the date
of payment of the bonds to be funded or refunded or to 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, and the premium,
if any, necessary to be paid in order to call or retire the
outstanding bonds and the interest accruing thereon to the date of
the call or retirement.
90058. All bonds and notes issued under the provisions of this
article are negotiable instruments, except when registered in the
name of a registered owner.
90059. Before issuing any bond or bonds pursuant to the provisions
of this article, the board shall by resolution declare the purpose
for which the proceeds of the bonds proposed to be issued shall be
expended and shall specify the maximum amount of bonds to be issued
or sold for this purpose, and bonds shall not be issued or sold for
this purpose in an amount exceeding that specified maximum except
with the consent of bondholders, pursuant to amendment or
modification of an indenture, as provided in Section 90034 of this
article. Nothing in this section shall be construed to prevent the
board from amending any resolution of this type prior to the issuance
of bonds authorized thereby to increase or decrease the maximum
amount of bonds to be issued or sold. The issuance of bonds for one
or more projects may be included in a single resolution of
authorization.
90060. The board has full charge of the acquisition, construction
and completion of all projects authorized by them and may proceed
with such work forthwith.
90061. The board may construct any project and acquire all property
necessary therefor on such terms and conditions as it may deem
advisable. When any part of the work is to be done or performed by
any public body or by the United States jointly or in conjunction
with the board, the portion of the cost thereof to be borne by the
board may be turned over to the government of the United States or to
any other public body to be expended by it in the acquisition,
construction or completion of the project.
90062. Title to all property acquired by the board and the revenues
and income therefrom is in the State of California. The title to any
moneys, revenues, sinking funds, reserve funds and other funds
created by this article and the income thereof pledged to the payment
of the principal or interest or any bonds issued thereunder is
subject to trusts declared in favor of the bondholders. All such
property, and the income therefrom, are exempt from all taxation by
the State of California or by any county, city and county, city,
district, political subdivision or public corporation thereof.
90063. At all times the operation, maintenance, control, repair,
construction, reconstruction, alteration and improvement of any
project are vested in the board subject to such authorized leases as
may be permitted by any indenture.
90064. The board may use for the payment of the costs of
acquisition, construction or completion of any project any funds made
available to the board by the State of California or any other funds
provided by the board from any source, to be expended for the
accomplishing of the purposes set forth in this article, together
with the proceeds of revenue bonds and revenue bond anticipation
notes issued and sold by the board.
90065. The board may insure against loss of revenues from any cause
whatsoever and the proceeds of any insurance shall be used for the
payment of bonds or notes and the interest thereon, or for other
purposes as may be provided in an indenture.
90066. The board may insure against public liability or property
damage. The board may provide in an indenture for the carrying of
this or any other insurance in the amount and of the character as it
shall determine, and for the payment of the premiums thereon.
90067. When authorized by resolution of the board, as provided in
this article, the State Treasurer shall prepare and procure the
printing or engrossing of notes, bonds, coupons, indentures or other
instruments and contracts or agreements of every kind required or
convenient for or pertaining to the issuance or sale of notes or
bonds.
90068. The board shall fix rents, charges and fees for all projects
acquired, constructed or completed under the terms of this article
for the use thereof by any persons utilizing the facilities thereof,
subject to such contractual obligations as may be entered into by the
board and the holders of notes and bonds issued under this article.
The board is authorized to change rents, charges and fees from time
to time, as conditions warrant. To the extent and in the manner
provided in the indenture, all rents, charges and fees shall at all
times be fixed to yield annual revenue equal to annual operating and
maintenance expenses, including repairs and insurance costs and all
redemption payments and interest charges and reserve fund
requirements on revenue bonds at any time issued and outstanding
hereunder, as the same become due.
90069. Rent, charges, and fees collected in error may be refunded
by the board in accordance with regulations prescribed by the board.
Refunds of rent, charges, and fees collected for facilities requested
by students and not utilized by them may be made for good cause by
the board in such amounts and under such conditions as may be
prescribed by regulations adopted by the board.
90070. The board may include in an indenture those limitations as
to competitive projects, both as to location and comparative rentals,
as may be deemed necessary or desirable for the security of revenue
bonds issued pursuant to this article.
90071. The board may also include in an indenture a covenant that
no project acquired, constructed or completed from the proceeds of
revenue bonds issued under the provisions of this article shall be
used without charge therefor or any facilities thereof be furnished
free of charge to any person.
90072. The holder of any bond or note issued pursuant to this
article may by mandamus or other appropriate proceeding require and
compel the performance of any of the duties imposed upon the board or
upon any official or employee or assumed by any thereof, in
connection with the acquisition, construction, operation,
maintenance, repair, reconstruction or insurance of any project, or
the collection, deposit, investment, application and disbursement of
rents, rates, charges, fees and all other revenues derived from the
operation and use of any project or in connection with the deposit,
investment and disbursement of the proceeds received from the sale of
bonds and notes under this article. The enumeration of such rights
and remedies does not, however, exclude the exercise or prosecution
of any other rights or remedies available to the holders of bonds and
notes issued pursuant to this article.
90073. The proceeds from the sale of all bonds and notes authorized
under this article, except those proceeds used to redeem outstanding
bonds or notes, shall be deposited forthwith by the Treasurer, on
order of the Controller, in the State Treasury to the credit of a
fund to be designated as the California State University Dormitory
Construction Fund, which is hereby created. The money in the
California State University Dormitory Construction Fund shall be
expended, pursuant to claims filed by the board with the Controller,
for the purposes authorized by this article, or as provided in the
indenture or notes, and for any other purposes, subject to the
restrictions provided by law, by the notes, or by the indenture, as
may be authorized by resolution of the board. In carrying out these
purposes, the money may be used to make loans to builders and
developers for the establishment, acquisition, or construction of
projects, to acquire leasehold interests in projects, or otherwise to
provide funds for projects in any manner that the board may
authorize by resolution. Moneys required to meet the costs of
acquisition, construction, improvement, equipment, furnishing,
financing, or refinancing of any project authorized by this article,
and all costs incident thereto, shall be paid from the California
State University Dormitory Construction Fund as provided in this
article upon claim filed by the board and after audit by the
Controller in the manner provided by law and upon warrants drawn by
the Controller.
90074. To the extent and in the manner provided in the indenture or
in a resolution authorizing the issuance of notes, all revenues
received from the operation of any project acquired or constructed by
the board under the provisions of this article shall be transmitted
by the board at least once in every calendar month, to the Treasurer.
On order of the Controller, the Treasurer shall deposit the revenues
in the State Treasury to the credit of the California State
University Dormitory Revenue Fund, which fund is hereby created.
Moneys in the California State University Dormitory Revenue Fund
shall be used to pay the costs of operation and maintenance of the
projects authorized by this article, including refunds authorized by
Section 90069, to provide the amounts required for interest and
redemption of notes and bonds as provided in this article, and for
any other purposes authorized by resolution of the board, subject to
any restrictions provided by law, a resolution authorizing the
issuance of notes, or the indenture.
90075. For the payment of the principal and interest of the notes
and bonds authorized to be issued under this article, an interest and
redemption fund in the State Treasury is hereby created, to be
designated the California State University Dormitory Interest and
Redemption Fund. From the money deposited in the California State
University Dormitory Construction Fund, the Treasurer, on order of
the Controller, shall transfer to the California State University
Dormitory Interest and Redemption Fund the sums required to pay the
interest as it becomes due on all notes and bonds sold and
outstanding for the construction or acquisition of a particular
project authorized under this article during the period of actual
construction or acquisition thereof and during the period thereafter
as may be provided in the indenture or authorized by resolution of
the board. The Treasurer, on order of the Controller, shall
thereafter transfer from the California State University Dormitory
Revenue Fund to the California State University Dormitory Interest
and Redemption Fund the sums required to pay the interest on the
notes and bonds and redeem the principal thereof as the interest
payments and note and bond redemptions fall due for all notes and
bonds issued under the provisions of this article.
90076. Any balance remaining in any of the funds created by this
article after payment of all costs, expenses, and charges authorized
to be expended therefrom, may be allocated and used for other
purposes incidental to the acquisition, construction, furnishing,
equipping, operation and maintenance of such projects authorized
under the provisions of this article as the board may determine.
90077. Moneys in the California State University Dormitory
Construction Fund may be invested by the board subject only to
limitations which may be provided in any resolution authorizing the
issuance of revenue bond anticipation notes or in any indenture
providing for the issuance of revenue bonds. All securities or other
investments made under the provisions of this article shall be held
by the Treasurer as custodian thereof. All interest or other earnings
received pursuant to the investments shall be collected by the
Treasurer, and, on order of the Controller, shall be deposited in the
State Treasury to the credit of the fund from which interest or
other earnings are derived.
90078. After all of the notes and revenue bonds shall have been
fully paid and discharged, or provision for their payment and
discharge irrevocably made, any surplus moneys in the California
State University Dormitory Construction Fund shall, subject to the
limitations and restrictions in any resolution authorizing the
issuance of the notes or in any indenture providing for the issuance
of the revenue bonds, remain available for the acquisition of sites
for, and for the construction, equipping and furnishing of, buildings
for the California State University.
90079. All money in the funds created by the provisions of this
article is hereby appropriated for expenditure in carrying out the
purposes herein provided.
90080. The article shall be liberally construed to carry out the
objects and purposes and the declared policy of the State of
California as in this article set forth.
90081. 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 to determine the validity of bonds issued, or any financing
contract entered into, by the board for the purposes of this
article.
90082. Notwithstanding any other law, the Controller may use the
moneys in the State College Dormitory Building Maintenance and
Equipment Reserve Fund for loans to the General Fund as provided in
Sections 16310 and 16381 of the Government Code. However, interest
shall be paid on all moneys loaned to the General Fund from the State
College Dormitory Building Maintenance and Equipment Reserve Fund.
Interest payable shall be computed at a rate determined by the Pooled
Money Investment Board to be the current earning rate of the fund
from which loaned. This section does not authorize any transfer that
will interfere with the carrying out of the object for which the
State College Dormitory Building Maintenance and Equipment Reserve
Fund was created.
90010. This article may be cited as "The State University Revenue
Bond Act of 1947."
90011. (a) The following terms wherever used or referred to in this
article, or in any indenture entered into pursuant to this article,
shall have the following meanings, respectively, unless a different
meaning appears from the context:
(1) "Board" means the Trustees of the California State University.
(2) "Bonds" or "revenue bonds" means the written evidence of any
obligation, other than revenue bond anticipation notes, issued by the
board, payment of which is secured by a pledge of revenues or any
part of revenues, as provided in this article, in order to obtain
funds with which to carry out the purposes of this article,
irrespective of the form of the obligations.
(3) The "holder of bonds" or "bondholder" or any similar term
means any person who shall be the bearer of any outstanding revenue
bond or bond registered to bearer or not registered or the registered
owner of any outstanding revenue bond or bond that shall at the time
be registered other than to the bearer.
(4) "Indenture" means an agreement entered into by the board
pursuant to which revenue bonds are issued, regardless of whether the
agreement is expressed in the form of a resolution of the board or
by other instrument.
(5) "Notes" and "revenue bond anticipation notes" mean the written
evidence of any obligation, including commercial paper notes, issued
by the board, pursuant to Section 90013, in anticipation of the sale
of revenue bonds, for the purpose of obtaining funds to carry out
the purposes of this article.
(6) "Person" includes any individual, firm, corporation,
association, copartnership, trust, business trust, receiver, trustee,
or conservator for any thereof, but does not include this state or
any public corporation, political subdivision, city, county,
district, or any agency thereof or of this state.
(7) "Project" means any one or more dormitories or other housing
facilities, boarding facilities, student union or activity
facilities, vehicle parking facilities, alternative transportation
programs, or any other auxiliary or supplementary facilities for
individual or group accommodation, owned or operated or authorized to
be acquired, constructed, furnished, equipped, and operated by the
board for use by students, faculty members, or other employees of any
one or more campuses of the California State University, or a
combination of those facilities, which may include facilities already
completed and facilities authorized for future completion, or any
other facilities designated by the board as a project in providing
for the issuance of revenue bonds or notes.
(8) "Revenues" mean and include any and all fees, rates, rentals,
and other charges received or receivable in connection with, and any
and all other incomes and receipts of whatever kind and character
derived by, the board from the operation of, or arising from, a
project, including any revenue that may have been, or may be,
impounded or deposited in any fund in the State Treasury created by
this article or in any other fund or account pursuant to law for the
security of any notes or bonds issued hereunder, or for the purpose
of providing for the payment thereof, or the interest thereon.
(9) "State university" and "campus of the California State
University" means any of the institutions included within the
California State University, as listed in Section 89001.
(b) As used in this article:
(1) The present tense includes the past and future tenses, and the
future tense includes the present tense.
(2) The masculine gender includes the feminine and neuter.
(3) The singular number includes the plural, and the plural
includes the singular.
(4) "Shall" is mandatory, and "may" is permissive.
90012. The board, for the purposes of this article, has power and
is hereby authorized, in addition to and amplification of all other
powers conferred upon the board by the Constitution of the State of
California or by any statute of the State of California:
(a) To acquire, subject to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code), by grant, purchase, gift, devise, or lease, and to
hold and use, any real or personal property necessary, convenient, or
useful for the carrying on of any of its powers pursuant to this
article.
(b) To construct, operate, and control any project.
(c) To fix rates, rents, or other charges for the use of any
project acquired, constructed, equipped, furnished, operated or
maintained by the board, or for services rendered in connection
therewith, and to alter, change, or modify the same at its pleasure,
subject to any contractual obligation that may be entered into by the
board with respect to the fixing of rates, rents, or charges.
(d) To enter into covenants to increase rates or charges from time
to time as may be necessary pursuant to any contract or agreement
with the holders of any bonds of the board.
(e) At any time and from time to time, to issue revenue bonds in
order to raise funds for the purpose of establishing any project or
of acquiring lands for any project, or of acquiring, constructing,
improving, equipping, furnishing, financing, or refinancing any
project, including payment of principal and interest on revenue bond
anticipation notes, or for any combination of these purposes, which
bonds may be secured as provided in this article.
(f) At any time, and from time to time, in connection with the
financing or refinancing of any project, to loan or advance proceeds
of revenue bonds or revenue bond anticipation notes to any person or
state or local governmental entity, and to enter into loan
agreements, leases, installation purchase agreements, conditional
sales contracts, and similar financing instruments with the recipient
of that loan or advance, all upon terms and conditions determined by
the board.
(g) At any time and from time to time, to issue revenue bond
anticipation notes pursuant to Section 90013.
(h) To adopt rules and regulations as may be necessary to enable
the board to exercise the powers and to perform the duties conferred
or imposed upon the board by this article.
(i) Nothing contained in this section or elsewhere in this article
shall be construed directly or by implication to be in derogation of
or in limitation of powers conferred upon or existing in the board
by the Constitution or statutes of this state.
90013. (a) The board may issue revenue bond anticipation notes, in
anticipation of the sale of revenue bonds. Before issuing any of
these notes, the board shall, by resolution, authorize their
issuance, declare the purpose for which the proceeds of the notes
shall be expended, and specify the maximum amount of notes to be
issued for that purpose.
(b) Revenue bond anticipation notes shall bear interest at the
fixed or variable rate or rates determined by the board, not
exceeding 12 percent per annum, payable in the time, form, and manner
set forth in the indenture for the notes, and shall mature on the
date or dates determined by the board and set forth in the resolution
or indenture authorizing their issuance.
(c) The proceeds from the sale of notes shall be used only for the
purposes for which the proceeds of the sale of bonds may be used in
anticipation whereof the notes are issued.
(d) All notes issued, including renewal notes, and the interest
thereon shall be payable from the proceeds of the sale of the bonds,
the revenues of the project, any appropriations made for that purpose
or all of these sources, and not otherwise, except that if the sale
of the bonds has not occurred prior to the maturity of the notes
issued in anticipation thereof, the board may issue renewal notes to
pay the notes then maturing. No renewal notes shall be issued after
the sale of the bonds in anticipation of which the original note was
issued.
(e) Revenue bond anticipation notes may be secured by a pledge of,
and lien upon, the proceeds of the sale of bonds, the revenues of
the project, and any other legally available funds.
(f) A resolution or indenture authorizing the issuance of revenue
bond anticipation notes may include provisions deemed necessary or
advisable by the board for the security of the notes issued
thereunder, and may include any and all provisions authorized to be
included in indentures by this article.
90014. Notes authorized to be issued under this article shall be
sold by the Treasurer, for cash, in the manner that the Treasurer
shall be directed by a resolution requesting the sale adopted by the
board. Notes in the form of commercial paper notes shall be sold in
the manner specified in the indenture for the notes.
90015. The validity of the authorization and issuance of any
revenue bonds or revenue bond anticipation notes by the board is not
dependent on nor affected in any way by:
(a) Proceedings taken by the board for the acquisition,
construction or completion of any project or any part thereof.
(b) Any contracts made by the board in connection with the
acquisition, construction or completion of any project.
(c) The failure to complete any project for which bonds or notes
are authorized to be issued.
90016. The board shall issue revenue bonds and revenue bond
anticipation notes in its name and as its obligation, but no bond or
note issued or sold pursuant to this article shall be or become a
lien, charge, or liability against the State of California or against
the board or against the property or funds of either, except, in the
case of revenue bonds, to the extent of the pledge of revenues or
part of revenues of the project, as may be provided by the indenture
pursuant to which revenue bonds are issued, and, in the case of
notes, to the extent of the pledge of revenues of the project and
proceeds of the sale of bonds, as may be provided in the resolution
or indenture authorizing the issuance of the notes. Each of these
bonds and notes issued by the board shall contain a recital on the
face thereof, stating that neither the payment of the principal nor
any part thereof, nor any interest thereon, constitutes a debt,
liability, or obligation of the State of California.
90017. The board shall determine the time, form, and manner of the
issuance of revenue bonds and revenue bond anticipation notes.
90018. The board may enter into indentures providing for the
aggregate principal amount, date or dates, maturities, interest
rates, denominations, form, registration, transfer and interchange of
any revenue bonds and coupons issued pursuant to this article, and
the terms and conditions on which the same shall be executed, issued,
secured, sold, paid, redeemed, funded, and refunded. Reference on
the face of the bonds to the indenture by its date of adoption, or
the apparent date on the face thereof, is sufficient to incorporate
all of the provisions thereof and of this article into the body of
the bonds and their appurtenant coupons. Each taker and subsequent
holder of the bonds or coupons, whether the coupons are attached to
or detached from the bonds, has recourse to all of the provisions of
the indenture and of this article, and is bound thereby.
90019. An indenture pursuant to which bonds are issued may include
any and all of the covenants and agreements on the part of the board
as the board deems necessary or advisable for the better security of
the bonds issued thereunder.
90020. An indenture may provide that payments of principal and
interest of bonds shall be secured by all or by part of revenues.
90021. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay or cause to be paid
punctually the principal of all such bonds and the interest thereon
on the date or dates, or at the place or places, and in the manner
mentioned in such bonds and in the coupons appertaining thereto in
accordance with such indenture.
90022. An indenture may include a clause relating to the bonds
issued thereunder, requiring the board to operate the project
continuously, to the extent practicable under conditions as they may
from time to time exist, in an efficient and economical manner.
90023. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to make all necessary repairs,
renewals and replacements to any project, and to keep the project at
all times in good repair, working order and condition.
90024. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to preserve and protect the
security of the bonds and the rights of the holders thereof and to
warrant and defend such rights.
90025. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay and discharge or cause
to be paid and discharged all lawful claims for labor, materials and
supplies or other charges which, if unpaid, might become a lien or
charge upon the revenues, or any part thereof, of any project
acquired, constructed or completed from the proceeds of the sale of
the bonds, or upon any physical properties, or which might impair the
security of the bonds.
90026. An indenture may include a clause relating to the bonds
issued thereunder which limits, restricts, or prohibits any right,
power or privilege of the board to mortgage or otherwise encumber,
sell, lease or dispose of any improvements constructed from the
proceeds of the bonds, or to enter into any lease or agreement which
impairs or impedes the operation of a project, or any part thereof,
necessary to secure adequate revenues or which otherwise impairs or
impedes the rights of the holders of the bonds with respect to such
revenues.
90027. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to fix, prescribe, and collect
rates, rentals, or other charges in connection with the services and
facilities furnished from the project acquired, constructed, or
purchased from part or all of the proceeds of the bonds, or from the
revenues securing the bonds, sufficient to pay the principal of and
interest on the bonds as they become due and payable, together with
additional sums that may be required for any fund created by this
article, for the further security of the bonds or as a depreciation
charge or other charge in connection with the project.
90028. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to hold or cause to be held in
trust the revenues or any part of revenues pledged to the payment of
such bonds and the interest thereon, or to any reserve or other fund
created by this article for the further protection of the bonds, and
to apply such revenues or any part of revenues or cause them to be
applied only as provided in the indenture.
90029. An indenture may include a clause defining the power of the
board in applying the proceeds of the sale of any issue of bonds for
the acquiring, constructing, or completing of any project or any part
thereof.
90030. An indenture may include a clause limiting the power of the
board to issue additional bonds for the purpose of acquiring,
constructing or completing any project or any part thereof.
90031. An indenture may include a clause requiring, specifying or
limiting the kind, amount and character of insurance to be maintained
by the board on any project, or any part thereof, and the use and
disposition of the proceeds of any such insurance thereafter
collected.
90032. An indenture may include a clause providing the events of
default and the terms and conditions upon which any or all of the
bonds of the board then or thereafter issued may become or be
declared due and payable prior to maturity, and the terms and
conditions upon which such declaration and its consequences may be
waived.
90033. An indenture may include a clause designating the rights,
limitations, powers and duties arising upon breach by the board of
any of the covenants, conditions, or obligations contained in any
indenture.
90034. An indenture may include a clause prescribing a procedure by
which the terms and conditions of the indenture may be subsequently
amended or modified with the consent of the board and the vote or
written assent of the holders of a specified principal amount or
specified proportion of the bonds issued and outstanding. The clause
may provide for meetings of bondholders and for the manner in which
the consent of the bondholders may be given. The clause shall
specifically state the effect of the amendment or modification upon
the rights of the holders of all of the bonds and interest coupons
appertaining thereto, whether attached thereto or detached therefrom.
With respect to any clause providing for the modification or
amendment of an indenture, the board may agree that bonds held by the
Treasurer, the United States or any instrumentality thereof, or the
State of California or any political subdivision thereof (including
every municipal corporation, district, public corporation, board or
agency of any kind or class) shall not be counted as outstanding
bonds, or be entitled to vote or assent, but shall, nevertheless, be
subject to any modification or amendment of this type.
90035. An indenture may include a clause or clauses providing for
such other acts and matters as may be necessary or convenient or
desirable in order better to secure the bonds or to make the bonds
more marketable.
90036. The State Treasurer shall act as trustee for the board and
the holders of bonds issued hereunder, and the board may authorize
the trustee to act on behalf of the holders of the bonds, or any
stated percentage thereof, and to exercise and prosecute on behalf of
the holders of the bonds such rights and remedies as may be
available to the holders. The board may provide in the indenture for
the deposit of all revenues received from the project with the
trustee to be held in a separate account in the California State
University Dormitory Revenue Fund created by this article. The money
in the fund shall be disbursed only as provided in the indenture.
90037. The board shall prescribe the duties and powers of the
trustee with respect to the issuance, authentication, sale and
delivery of the bonds and the payment of principal and interest
thereof, the redemption of the bonds, the registration and discharge
from registration of the bonds, and the management of any sinking
fund or other funds provided as security for the bonds.
90038. The board may provide for one or several issues of bonds and
may issue bonds in series or may divide any issue into one or more
divisions and fix different maturities or dates of those bonds,
different rates of interest, or prescribe different terms and
conditions for the bonds of the several series or divisions. It is
not necessary that all bonds of the same authorized issue be of the
same kind or character, have the same security, or be of the same
interest rate, but the terms thereof shall in each case be provided
for by the board, at or prior to the issue thereof.
90039. Bonds may be issued as coupon bonds or as registered bonds.
The board may provide for the interchange of coupon bonds for
registered bonds and registered bonds for coupon bonds, and may
provide that the bonds shall be registered as to principal only, or
as to both principal and interest, or otherwise as the board may
determine.
90040. Bonds shall bear interest at a fixed or variable rate of not
to exceed 12 percent per annum, payable in the time, form, and
manner set forth in the indenture for the bonds.
90041. Notwithstanding the provisions of Sections 90013, 90040, and
90048, the rate of interest which bonds or notes may bear and the
yield resulting to the purchaser thereof may exceed the maximum rates
specified in said sections to the extent of any debt service grant
applicable to such interest which the United States of America has
agreed, pursuant to any federal statute, to pay with respect to the
bonds or notes.
90042. Bonds may be callable upon any terms, conditions, and upon
any notice as the board may determine, and upon the payment of the
premium as may be fixed by the board in the proceedings for the
issuance of the bonds. No bond is subject to call or redemption prior
to its fixed maturity date unless the right to exercise the call is
expressly stated on the face of the bond.
90043. The board may provide for the payment of the principal and
interest of bonds at any place within or without the State of
California, and in specified coin or currency of the United States.
90044. The board may provide for the execution and authentication
of bonds and notes by the manual, lithographed or printed facsimile
signature of officers of the board and, in the case of bonds, by
additional authentication by the Treasurer as trustee. If any of the
officers whose signatures or countersignatures appear upon the notes,
bonds or coupons cease to be officers before the delivery of the
notes, bonds or coupons, their signatures or countersignatures are
nevertheless valid and of the same force and effect as if the
officers had remained in office until the delivery of the notes,
bonds or coupons.
90045. Bonds shall bear dates prescribed by the board. Bonds may be
serial bonds or sinking fund bonds with those maturities as the
board may determine. No bond by its terms shall mature in more than
50 years from its own date and, in the event any authorized issue is
divided into two or more series or divisions, the maximum maturity
date herein authorized shall be calculated from the date on the face
of each bond separately, irrespective of the fact that different
dates may be prescribed for the bonds of each separate series or
division of any authorized issue.
90046. Immediately after the adoption of a resolution by the board
directing the preparation of any bonds or notes authorized under this
article, the Treasurer shall prepare the requisite number of
suitable bonds or notes of the denominations, and in accordance with
the specifications contained in such resolution.
90047. When the bonds authorized to be issued under this article
are duly executed, they shall be sold by the Treasurer, for cash, in
those parcels and numbers as the Treasurer shall be directed by a
resolution adopted by the board. Before offering any of the bonds for
sale, the Treasurer shall detach therefrom all coupons, if any, that
have matured or will mature before the day fixed for the sale. Bonds
in the form of commercial paper notes shall be sold in the manner
specified in the indenture for the bonds.
90048. Bonds and notes may be sold at either public or private
sale. The board may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds or notes. The Treasurer,
when authorized by resolution of the board may sell bonds and notes
at less than their par or face value, but no bond or note may be sold
at a price below the par or face value thereof which would result in
a sale price yielding to the purchaser an average of more than 12
percent per annum, payable semiannually, according to standard tables
of bond values.
90049. The board may provide for the security of bonds. The board
may use and expend all or any part of any funds or proceeds of any
property owned by it, whether received by gift, appropriation or
otherwise, if not restricted as to the use of such funds or proceeds
of property by the terms of any gift or trust or provision of law for
the redemption of bonds issued pursuant to the provisions of this
article and the payment of interest due thereon.
90050. All costs and expenses incident to the issuance and sale of
notes may be paid out of the proceeds of the sale of the notes. All
costs and expenses incident to the issuance and sales of bonds and
all costs and expenses incident to the redemption of revenue bond
anticipation notes retired with proceeds from the sale of the bonds
may be paid out of the proceeds of the sale of the bonds. Interest on
bonds may be paid out of the proceeds of the sale of the bonds
during the actual construction of any project for the acquisition,
construction or completion of which the bonds have been issued, and
for a period of not to exceed two (2) years thereafter as provided
for in the indenture.
90051. The board may provide that notes or bonds and the interest
thereon shall be secured by all or by part of revenues of a project
upon the basis of which the notes or bonds are issued or authorized
to be issued, and shall constitute a lien upon the revenues of the
project as may be provided for in the notes or in any indenture.
90052. Pending the actual issuance or delivery of revenue bonds,
the board may issue temporary or interim bonds, certificates or
receipts of any denomination whatsoever, and with or without coupons,
to be exchanged for definitive bonds when ready for delivery.
90053. The board may provide for the replacement of lost, destroyed
or mutilated notes, bonds, and coupons.
90054. Bonds and notes issued pursuant to the provisions of this
article and the interest or income therefrom are exempt from all
taxation in this state other than gift, inheritance and estate taxes.
90055. Notwithstanding any other provision of law, all notes and
bonds hereafter sold and delivered pursuant to the provisions of this
article are legal investments for all trust funds and for the funds
of all insurance companies, banks, both commercial and savings, trust
companies, and the state school funds, and may also be used as
security for the deposit of public moneys in banks in this state.
Such bonds are also legal investments for any public or private funds
which may be invested in county, municipal or school district bonds,
and may be deposited as security for the performance of any act
whenever the bonds of any county, municipality or school district may
be so deposited.
90056. The board may provide for the issuance, sale, or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued under the provisions of this article. All provisions of
this article applicable to the issuance of revenue bonds are
applicable to the funding or refunding bonds and to the issuance,
sale or exchange thereof.
90057. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all bonds to be
funded or refunded thereby, and in addition for the payment of all
expenses incident to the calling, retiring or paying of such
outstanding bonds, and the issuance of such funding or refunding
bonds. These expenses include the difference in amount between the
par value of the funding or refunding bonds and any amount less than
par for which the funding or refunding bonds are sold, any amount
necessary to be made available for the payment of interest upon such
funding or refunding bonds from the date of sale thereof to the date
of payment of the bonds to be funded or refunded or to 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, and the premium,
if any, necessary to be paid in order to call or retire the
outstanding bonds and the interest accruing thereon to the date of
the call or retirement.
90058. All bonds and notes issued under the provisions of this
article are negotiable instruments, except when registered in the
name of a registered owner.
90059. Before issuing any bond or bonds pursuant to the provisions
of this article, the board shall by resolution declare the purpose
for which the proceeds of the bonds proposed to be issued shall be
expended and shall specify the maximum amount of bonds to be issued
or sold for this purpose, and bonds shall not be issued or sold for
this purpose in an amount exceeding that specified maximum except
with the consent of bondholders, pursuant to amendment or
modification of an indenture, as provided in Section 90034 of this
article. Nothing in this section shall be construed to prevent the
board from amending any resolution of this type prior to the issuance
of bonds authorized thereby to increase or decrease the maximum
amount of bonds to be issued or sold. The issuance of bonds for one
or more projects may be included in a single resolution of
authorization.
90060. The board has full charge of the acquisition, construction
and completion of all projects authorized by them and may proceed
with such work forthwith.
90061. The board may construct any project and acquire all property
necessary therefor on such terms and conditions as it may deem
advisable. When any part of the work is to be done or performed by
any public body or by the United States jointly or in conjunction
with the board, the portion of the cost thereof to be borne by the
board may be turned over to the government of the United States or to
any other public body to be expended by it in the acquisition,
construction or completion of the project.
90062. Title to all property acquired by the board and the revenues
and income therefrom is in the State of California. The title to any
moneys, revenues, sinking funds, reserve funds and other funds
created by this article and the income thereof pledged to the payment
of the principal or interest or any bonds issued thereunder is
subject to trusts declared in favor of the bondholders. All such
property, and the income therefrom, are exempt from all taxation by
the State of California or by any county, city and county, city,
district, political subdivision or public corporation thereof.
90063. At all times the operation, maintenance, control, repair,
construction, reconstruction, alteration and improvement of any
project are vested in the board subject to such authorized leases as
may be permitted by any indenture.
90064. The board may use for the payment of the costs of
acquisition, construction or completion of any project any funds made
available to the board by the State of California or any other funds
provided by the board from any source, to be expended for the
accomplishing of the purposes set forth in this article, together
with the proceeds of revenue bonds and revenue bond anticipation
notes issued and sold by the board.
90065. The board may insure against loss of revenues from any cause
whatsoever and the proceeds of any insurance shall be used for the
payment of bonds or notes and the interest thereon, or for other
purposes as may be provided in an indenture.
90066. The board may insure against public liability or property
damage. The board may provide in an indenture for the carrying of
this or any other insurance in the amount and of the character as it
shall determine, and for the payment of the premiums thereon.
90067. When authorized by resolution of the board, as provided in
this article, the State Treasurer shall prepare and procure the
printing or engrossing of notes, bonds, coupons, indentures or other
instruments and contracts or agreements of every kind required or
convenient for or pertaining to the issuance or sale of notes or
bonds.
90068. The board shall fix rents, charges and fees for all projects
acquired, constructed or completed under the terms of this article
for the use thereof by any persons utilizing the facilities thereof,
subject to such contractual obligations as may be entered into by the
board and the holders of notes and bonds issued under this article.
The board is authorized to change rents, charges and fees from time
to time, as conditions warrant. To the extent and in the manner
provided in the indenture, all rents, charges and fees shall at all
times be fixed to yield annual revenue equal to annual operating and
maintenance expenses, including repairs and insurance costs and all
redemption payments and interest charges and reserve fund
requirements on revenue bonds at any time issued and outstanding
hereunder, as the same become due.
90069. Rent, charges, and fees collected in error may be refunded
by the board in accordance with regulations prescribed by the board.
Refunds of rent, charges, and fees collected for facilities requested
by students and not utilized by them may be made for good cause by
the board in such amounts and under such conditions as may be
prescribed by regulations adopted by the board.
90070. The board may include in an indenture those limitations as
to competitive projects, both as to location and comparative rentals,
as may be deemed necessary or desirable for the security of revenue
bonds issued pursuant to this article.
90071. The board may also include in an indenture a covenant that
no project acquired, constructed or completed from the proceeds of
revenue bonds issued under the provisions of this article shall be
used without charge therefor or any facilities thereof be furnished
free of charge to any person.
90072. The holder of any bond or note issued pursuant to this
article may by mandamus or other appropriate proceeding require and
compel the performance of any of the duties imposed upon the board or
upon any official or employee or assumed by any thereof, in
connection with the acquisition, construction, operation,
maintenance, repair, reconstruction or insurance of any project, or
the collection, deposit, investment, application and disbursement of
rents, rates, charges, fees and all other revenues derived from the
operation and use of any project or in connection with the deposit,
investment and disbursement of the proceeds received from the sale of
bonds and notes under this article. The enumeration of such rights
and remedies does not, however, exclude the exercise or prosecution
of any other rights or remedies available to the holders of bonds and
notes issued pursuant to this article.
90073. The proceeds from the sale of all bonds and notes authorized
under this article, except those proceeds used to redeem outstanding
bonds or notes, shall be deposited forthwith by the Treasurer, on
order of the Controller, in the State Treasury to the credit of a
fund to be designated as the California State University Dormitory
Construction Fund, which is hereby created. The money in the
California State University Dormitory Construction Fund shall be
expended, pursuant to claims filed by the board with the Controller,
for the purposes authorized by this article, or as provided in the
indenture or notes, and for any other purposes, subject to the
restrictions provided by law, by the notes, or by the indenture, as
may be authorized by resolution of the board. In carrying out these
purposes, the money may be used to make loans to builders and
developers for the establishment, acquisition, or construction of
projects, to acquire leasehold interests in projects, or otherwise to
provide funds for projects in any manner that the board may
authorize by resolution. Moneys required to meet the costs of
acquisition, construction, improvement, equipment, furnishing,
financing, or refinancing of any project authorized by this article,
and all costs incident thereto, shall be paid from the California
State University Dormitory Construction Fund as provided in this
article upon claim filed by the board and after audit by the
Controller in the manner provided by law and upon warrants drawn by
the Controller.
90074. To the extent and in the manner provided in the indenture or
in a resolution authorizing the issuance of notes, all revenues
received from the operation of any project acquired or constructed by
the board under the provisions of this article shall be transmitted
by the board at least once in every calendar month, to the Treasurer.
On order of the Controller, the Treasurer shall deposit the revenues
in the State Treasury to the credit of the California State
University Dormitory Revenue Fund, which fund is hereby created.
Moneys in the California State University Dormitory Revenue Fund
shall be used to pay the costs of operation and maintenance of the
projects authorized by this article, including refunds authorized by
Section 90069, to provide the amounts required for interest and
redemption of notes and bonds as provided in this article, and for
any other purposes authorized by resolution of the board, subject to
any restrictions provided by law, a resolution authorizing the
issuance of notes, or the indenture.
90075. For the payment of the principal and interest of the notes
and bonds authorized to be issued under this article, an interest and
redemption fund in the State Treasury is hereby created, to be
designated the California State University Dormitory Interest and
Redemption Fund. From the money deposited in the California State
University Dormitory Construction Fund, the Treasurer, on order of
the Controller, shall transfer to the California State University
Dormitory Interest and Redemption Fund the sums required to pay the
interest as it becomes due on all notes and bonds sold and
outstanding for the construction or acquisition of a particular
project authorized under this article during the period of actual
construction or acquisition thereof and during the period thereafter
as may be provided in the indenture or authorized by resolution of
the board. The Treasurer, on order of the Controller, shall
thereafter transfer from the California State University Dormitory
Revenue Fund to the California State University Dormitory Interest
and Redemption Fund the sums required to pay the interest on the
notes and bonds and redeem the principal thereof as the interest
payments and note and bond redemptions fall due for all notes and
bonds issued under the provisions of this article.
90076. Any balance remaining in any of the funds created by this
article after payment of all costs, expenses, and charges authorized
to be expended therefrom, may be allocated and used for other
purposes incidental to the acquisition, construction, furnishing,
equipping, operation and maintenance of such projects authorized
under the provisions of this article as the board may determine.
90077. Moneys in the California State University Dormitory
Construction Fund may be invested by the board subject only to
limitations which may be provided in any resolution authorizing the
issuance of revenue bond anticipation notes or in any indenture
providing for the issuance of revenue bonds. All securities or other
investments made under the provisions of this article shall be held
by the Treasurer as custodian thereof. All interest or other earnings
received pursuant to the investments shall be collected by the
Treasurer, and, on order of the Controller, shall be deposited in the
State Treasury to the credit of the fund from which interest or
other earnings are derived.
90078. After all of the notes and revenue bonds shall have been
fully paid and discharged, or provision for their payment and
discharge irrevocably made, any surplus moneys in the California
State University Dormitory Construction Fund shall, subject to the
limitations and restrictions in any resolution authorizing the
issuance of the notes or in any indenture providing for the issuance
of the revenue bonds, remain available for the acquisition of sites
for, and for the construction, equipping and furnishing of, buildings
for the California State University.
90079. All money in the funds created by the provisions of this
article is hereby appropriated for expenditure in carrying out the
purposes herein provided.
90080. The article shall be liberally construed to carry out the
objects and purposes and the declared policy of the State of
California as in this article set forth.
90081. 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 to determine the validity of bonds issued, or any financing
contract entered into, by the board for the purposes of this
article.
90082. Notwithstanding any other law, the Controller may use the
moneys in the State College Dormitory Building Maintenance and
Equipment Reserve Fund for loans to the General Fund as provided in
Sections 16310 and 16381 of the Government Code. However, interest
shall be paid on all moneys loaned to the General Fund from the State
College Dormitory Building Maintenance and Equipment Reserve Fund.
Interest payable shall be computed at a rate determined by the Pooled
Money Investment Board to be the current earning rate of the fund
from which loaned. This section does not authorize any transfer that
will interfere with the carrying out of the object for which the
State College Dormitory Building Maintenance and Equipment Reserve
Fund was created.
90010. This article may be cited as "The State University Revenue
Bond Act of 1947."
90011. (a) The following terms wherever used or referred to in this
article, or in any indenture entered into pursuant to this article,
shall have the following meanings, respectively, unless a different
meaning appears from the context:
(1) "Board" means the Trustees of the California State University.
(2) "Bonds" or "revenue bonds" means the written evidence of any
obligation, other than revenue bond anticipation notes, issued by the
board, payment of which is secured by a pledge of revenues or any
part of revenues, as provided in this article, in order to obtain
funds with which to carry out the purposes of this article,
irrespective of the form of the obligations.
(3) The "holder of bonds" or "bondholder" or any similar term
means any person who shall be the bearer of any outstanding revenue
bond or bond registered to bearer or not registered or the registered
owner of any outstanding revenue bond or bond that shall at the time
be registered other than to the bearer.
(4) "Indenture" means an agreement entered into by the board
pursuant to which revenue bonds are issued, regardless of whether the
agreement is expressed in the form of a resolution of the board or
by other instrument.
(5) "Notes" and "revenue bond anticipation notes" mean the written
evidence of any obligation, including commercial paper notes, issued
by the board, pursuant to Section 90013, in anticipation of the sale
of revenue bonds, for the purpose of obtaining funds to carry out
the purposes of this article.
(6) "Person" includes any individual, firm, corporation,
association, copartnership, trust, business trust, receiver, trustee,
or conservator for any thereof, but does not include this state or
any public corporation, political subdivision, city, county,
district, or any agency thereof or of this state.
(7) "Project" means any one or more dormitories or other housing
facilities, boarding facilities, student union or activity
facilities, vehicle parking facilities, alternative transportation
programs, or any other auxiliary or supplementary facilities for
individual or group accommodation, owned or operated or authorized to
be acquired, constructed, furnished, equipped, and operated by the
board for use by students, faculty members, or other employees of any
one or more campuses of the California State University, or a
combination of those facilities, which may include facilities already
completed and facilities authorized for future completion, or any
other facilities designated by the board as a project in providing
for the issuance of revenue bonds or notes.
(8) "Revenues" mean and include any and all fees, rates, rentals,
and other charges received or receivable in connection with, and any
and all other incomes and receipts of whatever kind and character
derived by, the board from the operation of, or arising from, a
project, including any revenue that may have been, or may be,
impounded or deposited in any fund in the State Treasury created by
this article or in any other fund or account pursuant to law for the
security of any notes or bonds issued hereunder, or for the purpose
of providing for the payment thereof, or the interest thereon.
(9) "State university" and "campus of the California State
University" means any of the institutions included within the
California State University, as listed in Section 89001.
(b) As used in this article:
(1) The present tense includes the past and future tenses, and the
future tense includes the present tense.
(2) The masculine gender includes the feminine and neuter.
(3) The singular number includes the plural, and the plural
includes the singular.
(4) "Shall" is mandatory, and "may" is permissive.
90012. The board, for the purposes of this article, has power and
is hereby authorized, in addition to and amplification of all other
powers conferred upon the board by the Constitution of the State of
California or by any statute of the State of California:
(a) To acquire, subject to the Property Acquisition Law (Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code), by grant, purchase, gift, devise, or lease, and to
hold and use, any real or personal property necessary, convenient, or
useful for the carrying on of any of its powers pursuant to this
article.
(b) To construct, operate, and control any project.
(c) To fix rates, rents, or other charges for the use of any
project acquired, constructed, equipped, furnished, operated or
maintained by the board, or for services rendered in connection
therewith, and to alter, change, or modify the same at its pleasure,
subject to any contractual obligation that may be entered into by the
board with respect to the fixing of rates, rents, or charges.
(d) To enter into covenants to increase rates or charges from time
to time as may be necessary pursuant to any contract or agreement
with the holders of any bonds of the board.
(e) At any time and from time to time, to issue revenue bonds in
order to raise funds for the purpose of establishing any project or
of acquiring lands for any project, or of acquiring, constructing,
improving, equipping, furnishing, financing, or refinancing any
project, including payment of principal and interest on revenue bond
anticipation notes, or for any combination of these purposes, which
bonds may be secured as provided in this article.
(f) At any time, and from time to time, in connection with the
financing or refinancing of any project, to loan or advance proceeds
of revenue bonds or revenue bond anticipation notes to any person or
state or local governmental entity, and to enter into loan
agreements, leases, installation purchase agreements, conditional
sales contracts, and similar financing instruments with the recipient
of that loan or advance, all upon terms and conditions determined by
the board.
(g) At any time and from time to time, to issue revenue bond
anticipation notes pursuant to Section 90013.
(h) To adopt rules and regulations as may be necessary to enable
the board to exercise the powers and to perform the duties conferred
or imposed upon the board by this article.
(i) Nothing contained in this section or elsewhere in this article
shall be construed directly or by implication to be in derogation of
or in limitation of powers conferred upon or existing in the board
by the Constitution or statutes of this state.
90013. (a) The board may issue revenue bond anticipation notes, in
anticipation of the sale of revenue bonds. Before issuing any of
these notes, the board shall, by resolution, authorize their
issuance, declare the purpose for which the proceeds of the notes
shall be expended, and specify the maximum amount of notes to be
issued for that purpose.
(b) Revenue bond anticipation notes shall bear interest at the
fixed or variable rate or rates determined by the board, not
exceeding 12 percent per annum, payable in the time, form, and manner
set forth in the indenture for the notes, and shall mature on the
date or dates determined by the board and set forth in the resolution
or indenture authorizing their issuance.
(c) The proceeds from the sale of notes shall be used only for the
purposes for which the proceeds of the sale of bonds may be used in
anticipation whereof the notes are issued.
(d) All notes issued, including renewal notes, and the interest
thereon shall be payable from the proceeds of the sale of the bonds,
the revenues of the project, any appropriations made for that purpose
or all of these sources, and not otherwise, except that if the sale
of the bonds has not occurred prior to the maturity of the notes
issued in anticipation thereof, the board may issue renewal notes to
pay the notes then maturing. No renewal notes shall be issued after
the sale of the bonds in anticipation of which the original note was
issued.
(e) Revenue bond anticipation notes may be secured by a pledge of,
and lien upon, the proceeds of the sale of bonds, the revenues of
the project, and any other legally available funds.
(f) A resolution or indenture authorizing the issuance of revenue
bond anticipation notes may include provisions deemed necessary or
advisable by the board for the security of the notes issued
thereunder, and may include any and all provisions authorized to be
included in indentures by this article.
90014. Notes authorized to be issued under this article shall be
sold by the Treasurer, for cash, in the manner that the Treasurer
shall be directed by a resolution requesting the sale adopted by the
board. Notes in the form of commercial paper notes shall be sold in
the manner specified in the indenture for the notes.
90015. The validity of the authorization and issuance of any
revenue bonds or revenue bond anticipation notes by the board is not
dependent on nor affected in any way by:
(a) Proceedings taken by the board for the acquisition,
construction or completion of any project or any part thereof.
(b) Any contracts made by the board in connection with the
acquisition, construction or completion of any project.
(c) The failure to complete any project for which bonds or notes
are authorized to be issued.
90016. The board shall issue revenue bonds and revenue bond
anticipation notes in its name and as its obligation, but no bond or
note issued or sold pursuant to this article shall be or become a
lien, charge, or liability against the State of California or against
the board or against the property or funds of either, except, in the
case of revenue bonds, to the extent of the pledge of revenues or
part of revenues of the project, as may be provided by the indenture
pursuant to which revenue bonds are issued, and, in the case of
notes, to the extent of the pledge of revenues of the project and
proceeds of the sale of bonds, as may be provided in the resolution
or indenture authorizing the issuance of the notes. Each of these
bonds and notes issued by the board shall contain a recital on the
face thereof, stating that neither the payment of the principal nor
any part thereof, nor any interest thereon, constitutes a debt,
liability, or obligation of the State of California.
90017. The board shall determine the time, form, and manner of the
issuance of revenue bonds and revenue bond anticipation notes.
90018. The board may enter into indentures providing for the
aggregate principal amount, date or dates, maturities, interest
rates, denominations, form, registration, transfer and interchange of
any revenue bonds and coupons issued pursuant to this article, and
the terms and conditions on which the same shall be executed, issued,
secured, sold, paid, redeemed, funded, and refunded. Reference on
the face of the bonds to the indenture by its date of adoption, or
the apparent date on the face thereof, is sufficient to incorporate
all of the provisions thereof and of this article into the body of
the bonds and their appurtenant coupons. Each taker and subsequent
holder of the bonds or coupons, whether the coupons are attached to
or detached from the bonds, has recourse to all of the provisions of
the indenture and of this article, and is bound thereby.
90019. An indenture pursuant to which bonds are issued may include
any and all of the covenants and agreements on the part of the board
as the board deems necessary or advisable for the better security of
the bonds issued thereunder.
90020. An indenture may provide that payments of principal and
interest of bonds shall be secured by all or by part of revenues.
90021. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay or cause to be paid
punctually the principal of all such bonds and the interest thereon
on the date or dates, or at the place or places, and in the manner
mentioned in such bonds and in the coupons appertaining thereto in
accordance with such indenture.
90022. An indenture may include a clause relating to the bonds
issued thereunder, requiring the board to operate the project
continuously, to the extent practicable under conditions as they may
from time to time exist, in an efficient and economical manner.
90023. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to make all necessary repairs,
renewals and replacements to any project, and to keep the project at
all times in good repair, working order and condition.
90024. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to preserve and protect the
security of the bonds and the rights of the holders thereof and to
warrant and defend such rights.
90025. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to pay and discharge or cause
to be paid and discharged all lawful claims for labor, materials and
supplies or other charges which, if unpaid, might become a lien or
charge upon the revenues, or any part thereof, of any project
acquired, constructed or completed from the proceeds of the sale of
the bonds, or upon any physical properties, or which might impair the
security of the bonds.
90026. An indenture may include a clause relating to the bonds
issued thereunder which limits, restricts, or prohibits any right,
power or privilege of the board to mortgage or otherwise encumber,
sell, lease or dispose of any improvements constructed from the
proceeds of the bonds, or to enter into any lease or agreement which
impairs or impedes the operation of a project, or any part thereof,
necessary to secure adequate revenues or which otherwise impairs or
impedes the rights of the holders of the bonds with respect to such
revenues.
90027. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to fix, prescribe, and collect
rates, rentals, or other charges in connection with the services and
facilities furnished from the project acquired, constructed, or
purchased from part or all of the proceeds of the bonds, or from the
revenues securing the bonds, sufficient to pay the principal of and
interest on the bonds as they become due and payable, together with
additional sums that may be required for any fund created by this
article, for the further security of the bonds or as a depreciation
charge or other charge in connection with the project.
90028. An indenture may include a clause relating to the bonds
issued thereunder requiring the board to hold or cause to be held in
trust the revenues or any part of revenues pledged to the payment of
such bonds and the interest thereon, or to any reserve or other fund
created by this article for the further protection of the bonds, and
to apply such revenues or any part of revenues or cause them to be
applied only as provided in the indenture.
90029. An indenture may include a clause defining the power of the
board in applying the proceeds of the sale of any issue of bonds for
the acquiring, constructing, or completing of any project or any part
thereof.
90030. An indenture may include a clause limiting the power of the
board to issue additional bonds for the purpose of acquiring,
constructing or completing any project or any part thereof.
90031. An indenture may include a clause requiring, specifying or
limiting the kind, amount and character of insurance to be maintained
by the board on any project, or any part thereof, and the use and
disposition of the proceeds of any such insurance thereafter
collected.
90032. An indenture may include a clause providing the events of
default and the terms and conditions upon which any or all of the
bonds of the board then or thereafter issued may become or be
declared due and payable prior to maturity, and the terms and
conditions upon which such declaration and its consequences may be
waived.
90033. An indenture may include a clause designating the rights,
limitations, powers and duties arising upon breach by the board of
any of the covenants, conditions, or obligations contained in any
indenture.
90034. An indenture may include a clause prescribing a procedure by
which the terms and conditions of the indenture may be subsequently
amended or modified with the consent of the board and the vote or
written assent of the holders of a specified principal amount or
specified proportion of the bonds issued and outstanding. The clause
may provide for meetings of bondholders and for the manner in which
the consent of the bondholders may be given. The clause shall
specifically state the effect of the amendment or modification upon
the rights of the holders of all of the bonds and interest coupons
appertaining thereto, whether attached thereto or detached therefrom.
With respect to any clause providing for the modification or
amendment of an indenture, the board may agree that bonds held by the
Treasurer, the United States or any instrumentality thereof, or the
State of California or any political subdivision thereof (including
every municipal corporation, district, public corporation, board or
agency of any kind or class) shall not be counted as outstanding
bonds, or be entitled to vote or assent, but shall, nevertheless, be
subject to any modification or amendment of this type.
90035. An indenture may include a clause or clauses providing for
such other acts and matters as may be necessary or convenient or
desirable in order better to secure the bonds or to make the bonds
more marketable.
90036. The State Treasurer shall act as trustee for the board and
the holders of bonds issued hereunder, and the board may authorize
the trustee to act on behalf of the holders of the bonds, or any
stated percentage thereof, and to exercise and prosecute on behalf of
the holders of the bonds such rights and remedies as may be
available to the holders. The board may provide in the indenture for
the deposit of all revenues received from the project with the
trustee to be held in a separate account in the California State
University Dormitory Revenue Fund created by this article. The money
in the fund shall be disbursed only as provided in the indenture.
90037. The board shall prescribe the duties and powers of the
trustee with respect to the issuance, authentication, sale and
delivery of the bonds and the payment of principal and interest
thereof, the redemption of the bonds, the registration and discharge
from registration of the bonds, and the management of any sinking
fund or other funds provided as security for the bonds.
90038. The board may provide for one or several issues of bonds and
may issue bonds in series or may divide any issue into one or more
divisions and fix different maturities or dates of those bonds,
different rates of interest, or prescribe different terms and
conditions for the bonds of the several series or divisions. It is
not necessary that all bonds of the same authorized issue be of the
same kind or character, have the same security, or be of the same
interest rate, but the terms thereof shall in each case be provided
for by the board, at or prior to the issue thereof.
90039. Bonds may be issued as coupon bonds or as registered bonds.
The board may provide for the interchange of coupon bonds for
registered bonds and registered bonds for coupon bonds, and may
provide that the bonds shall be registered as to principal only, or
as to both principal and interest, or otherwise as the board may
determine.
90040. Bonds shall bear interest at a fixed or variable rate of not
to exceed 12 percent per annum, payable in the time, form, and
manner set forth in the indenture for the bonds.
90041. Notwithstanding the provisions of Sections 90013, 90040, and
90048, the rate of interest which bonds or notes may bear and the
yield resulting to the purchaser thereof may exceed the maximum rates
specified in said sections to the extent of any debt service grant
applicable to such interest which the United States of America has
agreed, pursuant to any federal statute, to pay with respect to the
bonds or notes.
90042. Bonds may be callable upon any terms, conditions, and upon
any notice as the board may determine, and upon the payment of the
premium as may be fixed by the board in the proceedings for the
issuance of the bonds. No bond is subject to call or redemption prior
to its fixed maturity date unless the right to exercise the call is
expressly stated on the face of the bond.
90043. The board may provide for the payment of the principal and
interest of bonds at any place within or without the State of
California, and in specified coin or currency of the United States.
90044. The board may provide for the execution and authentication
of bonds and notes by the manual, lithographed or printed facsimile
signature of officers of the board and, in the case of bonds, by
additional authentication by the Treasurer as trustee. If any of the
officers whose signatures or countersignatures appear upon the notes,
bonds or coupons cease to be officers before the delivery of the
notes, bonds or coupons, their signatures or countersignatures are
nevertheless valid and of the same force and effect as if the
officers had remained in office until the delivery of the notes,
bonds or coupons.
90045. Bonds shall bear dates prescribed by the board. Bonds may be
serial bonds or sinking fund bonds with those maturities as the
board may determine. No bond by its terms shall mature in more than
50 years from its own date and, in the event any authorized issue is
divided into two or more series or divisions, the maximum maturity
date herein authorized shall be calculated from the date on the face
of each bond separately, irrespective of the fact that different
dates may be prescribed for the bonds of each separate series or
division of any authorized issue.
90046. Immediately after the adoption of a resolution by the board
directing the preparation of any bonds or notes authorized under this
article, the Treasurer shall prepare the requisite number of
suitable bonds or notes of the denominations, and in accordance with
the specifications contained in such resolution.
90047. When the bonds authorized to be issued under this article
are duly executed, they shall be sold by the Treasurer, for cash, in
those parcels and numbers as the Treasurer shall be directed by a
resolution adopted by the board. Before offering any of the bonds for
sale, the Treasurer shall detach therefrom all coupons, if any, that
have matured or will mature before the day fixed for the sale. Bonds
in the form of commercial paper notes shall be sold in the manner
specified in the indenture for the bonds.
90048. Bonds and notes may be sold at either public or private
sale. The board may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds or notes. The Treasurer,
when authorized by resolution of the board may sell bonds and notes
at less than their par or face value, but no bond or note may be sold
at a price below the par or face value thereof which would result in
a sale price yielding to the purchaser an average of more than 12
percent per annum, payable semiannually, according to standard tables
of bond values.
90049. The board may provide for the security of bonds. The board
may use and expend all or any part of any funds or proceeds of any
property owned by it, whether received by gift, appropriation or
otherwise, if not restricted as to the use of such funds or proceeds
of property by the terms of any gift or trust or provision of law for
the redemption of bonds issued pursuant to the provisions of this
article and the payment of interest due thereon.
90050. All costs and expenses incident to the issuance and sale of
notes may be paid out of the proceeds of the sale of the notes. All
costs and expenses incident to the issuance and sales of bonds and
all costs and expenses incident to the redemption of revenue bond
anticipation notes retired with proceeds from the sale of the bonds
may be paid out of the proceeds of the sale of the bonds. Interest on
bonds may be paid out of the proceeds of the sale of the bonds
during the actual construction of any project for the acquisition,
construction or completion of which the bonds have been issued, and
for a period of not to exceed two (2) years thereafter as provided
for in the indenture.
90051. The board may provide that notes or bonds and the interest
thereon shall be secured by all or by part of revenues of a project
upon the basis of which the notes or bonds are issued or authorized
to be issued, and shall constitute a lien upon the revenues of the
project as may be provided for in the notes or in any indenture.
90052. Pending the actual issuance or delivery of revenue bonds,
the board may issue temporary or interim bonds, certificates or
receipts of any denomination whatsoever, and with or without coupons,
to be exchanged for definitive bonds when ready for delivery.
90053. The board may provide for the replacement of lost, destroyed
or mutilated notes, bonds, and coupons.
90054. Bonds and notes issued pursuant to the provisions of this
article and the interest or income therefrom are exempt from all
taxation in this state other than gift, inheritance and estate taxes.
90055. Notwithstanding any other provision of law, all notes and
bonds hereafter sold and delivered pursuant to the provisions of this
article are legal investments for all trust funds and for the funds
of all insurance companies, banks, both commercial and savings, trust
companies, and the state school funds, and may also be used as
security for the deposit of public moneys in banks in this state.
Such bonds are also legal investments for any public or private funds
which may be invested in county, municipal or school district bonds,
and may be deposited as security for the performance of any act
whenever the bonds of any county, municipality or school district may
be so deposited.
90056. The board may provide for the issuance, sale, or exchange of
refunding bonds for the purpose of redeeming or retiring any revenue
bonds issued under the provisions of this article. All provisions of
this article applicable to the issuance of revenue bonds are
applicable to the funding or refunding bonds and to the issuance,
sale or exchange thereof.
90057. Funding or refunding bonds may be issued in a principal
amount sufficient to provide funds for the payment of all bonds to be
funded or refunded thereby, and in addition for the payment of all
expenses incident to the calling, retiring or paying of such
outstanding bonds, and the issuance of such funding or refunding
bonds. These expenses include the difference in amount between the
par value of the funding or refunding bonds and any amount less than
par for which the funding or refunding bonds are sold, any amount
necessary to be made available for the payment of interest upon such
funding or refunding bonds from the date of sale thereof to the date
of payment of the bonds to be funded or refunded or to 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, and the premium,
if any, necessary to be paid in order to call or retire the
outstanding bonds and the interest accruing thereon to the date of
the call or retirement.
90058. All bonds and notes issued under the provisions of this
article are negotiable instruments, except when registered in the
name of a registered owner.
90059. Before issuing any bond or bonds pursuant to the provisions
of this article, the board shall by resolution declare the purpose
for which the proceeds of the bonds proposed to be issued shall be
expended and shall specify the maximum amount of bonds to be issued
or sold for this purpose, and bonds shall not be issued or sold for
this purpose in an amount exceeding that specified maximum except
with the consent of bondholders, pursuant to amendment or
modification of an indenture, as provided in Section 90034 of this
article. Nothing in this section shall be construed to prevent the
board from amending any resolution of this type prior to the issuance
of bonds authorized thereby to increase or decrease the maximum
amount of bonds to be issued or sold. The issuance of bonds for one
or more projects may be included in a single resolution of
authorization.
90060. The board has full charge of the acquisition, construction
and completion of all projects authorized by them and may proceed
with such work forthwith.
90061. The board may construct any project and acquire all property
necessary therefor on such terms and conditions as it may deem
advisable. When any part of the work is to be done or performed by
any public body or by the United States jointly or in conjunction
with the board, the portion of the cost thereof to be borne by the
board may be turned over to the government of the United States or to
any other public body to be expended by it in the acquisition,
construction or completion of the project.
90062. Title to all property acquired by the board and the revenues
and income therefrom is in the State of California. The title to any
moneys, revenues, sinking funds, reserve funds and other funds
created by this article and the income thereof pledged to the payment
of the principal or interest or any bonds issued thereunder is
subject to trusts declared in favor of the bondholders. All such
property, and the income therefrom, are exempt from all taxation by
the State of California or by any county, city and county, city,
district, political subdivision or public corporation thereof.
90063. At all times the operation, maintenance, control, repair,
construction, reconstruction, alteration and improvement of any
project are vested in the board subject to such authorized leases as
may be permitted by any indenture.
90064. The board may use for the payment of the costs of
acquisition, construction or completion of any project any funds made
available to the board by the State of California or any other funds
provided by the board from any source, to be expended for the
accomplishing of the purposes set forth in this article, together
with the proceeds of revenue bonds and revenue bond anticipation
notes issued and sold by the board.
90065. The board may insure against loss of revenues from any cause
whatsoever and the proceeds of any insurance shall be used for the
payment of bonds or notes and the interest thereon, or for other
purposes as may be provided in an indenture.
90066. The board may insure against public liability or property
damage. The board may provide in an indenture for the carrying of
this or any other insurance in the amount and of the character as it
shall determine, and for the payment of the premiums thereon.
90067. When authorized by resolution of the board, as provided in
this article, the State Treasurer shall prepare and procure the
printing or engrossing of notes, bonds, coupons, indentures or other
instruments and contracts or agreements of every kind required or
convenient for or pertaining to the issuance or sale of notes or
bonds.
90068. The board shall fix rents, charges and fees for all projects
acquired, constructed or completed under the terms of this article
for the use thereof by any persons utilizing the facilities thereof,
subject to such contractual obligations as may be entered into by the
board and the holders of notes and bonds issued under this article.
The board is authorized to change rents, charges and fees from time
to time, as conditions warrant. To the extent and in the manner
provided in the indenture, all rents, charges and fees shall at all
times be fixed to yield annual revenue equal to annual operating and
maintenance expenses, including repairs and insurance costs and all
redemption payments and interest charges and reserve fund
requirements on revenue bonds at any time issued and outstanding
hereunder, as the same become due.
90069. Rent, charges, and fees collected in error may be refunded
by the board in accordance with regulations prescribed by the board.
Refunds of rent, charges, and fees collected for facilities requested
by students and not utilized by them may be made for good cause by
the board in such amounts and under such conditions as may be
prescribed by regulations adopted by the board.
90070. The board may include in an indenture those limitations as
to competitive projects, both as to location and comparative rentals,
as may be deemed necessary or desirable for the security of revenue
bonds issued pursuant to this article.
90071. The board may also include in an indenture a covenant that
no project acquired, constructed or completed from the proceeds of
revenue bonds issued under the provisions of this article shall be
used without charge therefor or any facilities thereof be furnished
free of charge to any person.
90072. The holder of any bond or note issued pursuant to this
article may by mandamus or other appropriate proceeding require and
compel the performance of any of the duties imposed upon the board or
upon any official or employee or assumed by any thereof, in
connection with the acquisition, construction, operation,
maintenance, repair, reconstruction or insurance of any project, or
the collection, deposit, investment, application and disbursement of
rents, rates, charges, fees and all other revenues derived from the
operation and use of any project or in connection with the deposit,
investment and disbursement of the proceeds received from the sale of
bonds and notes under this article. The enumeration of such rights
and remedies does not, however, exclude the exercise or prosecution
of any other rights or remedies available to the holders of bonds and
notes issued pursuant to this article.
90073. The proceeds from the sale of all bonds and notes authorized
under this article, except those proceeds used to redeem outstanding
bonds or notes, shall be deposited forthwith by the Treasurer, on
order of the Controller, in the State Treasury to the credit of a
fund to be designated as the California State University Dormitory
Construction Fund, which is hereby created. The money in the
California State University Dormitory Construction Fund shall be
expended, pursuant to claims filed by the board with the Controller,
for the purposes authorized by this article, or as provided in the
indenture or notes, and for any other purposes, subject to the
restrictions provided by law, by the notes, or by the indenture, as
may be authorized by resolution of the board. In carrying out these
purposes, the money may be used to make loans to builders and
developers for the establishment, acquisition, or construction of
projects, to acquire leasehold interests in projects, or otherwise to
provide funds for projects in any manner that the board may
authorize by resolution. Moneys required to meet the costs of
acquisition, construction, improvement, equipment, furnishing,
financing, or refinancing of any project authorized by this article,
and all costs incident thereto, shall be paid from the California
State University Dormitory Construction Fund as provided in this
article upon claim filed by the board and after audit by the
Controller in the manner provided by law and upon warrants drawn by
the Controller.
90074. To the extent and in the manner provided in the indenture or
in a resolution authorizing the issuance of notes, all revenues
received from the operation of any project acquired or constructed by
the board under the provisions of this article shall be transmitted
by the board at least once in every calendar month, to the Treasurer.
On order of the Controller, the Treasurer shall deposit the revenues
in the State Treasury to the credit of the California State
University Dormitory Revenue Fund, which fund is hereby created.
Moneys in the California State University Dormitory Revenue Fund
shall be used to pay the costs of operation and maintenance of the
projects authorized by this article, including refunds authorized by
Section 90069, to provide the amounts required for interest and
redemption of notes and bonds as provided in this article, and for
any other purposes authorized by resolution of the board, subject to
any restrictions provided by law, a resolution authorizing the
issuance of notes, or the indenture.
90075. For the payment of the principal and interest of the notes
and bonds authorized to be issued under this article, an interest and
redemption fund in the State Treasury is hereby created, to be
designated the California State University Dormitory Interest and
Redemption Fund. From the money deposited in the California State
University Dormitory Construction Fund, the Treasurer, on order of
the Controller, shall transfer to the California State University
Dormitory Interest and Redemption Fund the sums required to pay the
interest as it becomes due on all notes and bonds sold and
outstanding for the construction or acquisition of a particular
project authorized under this article during the period of actual
construction or acquisition thereof and during the period thereafter
as may be provided in the indenture or authorized by resolution of
the board. The Treasurer, on order of the Controller, shall
thereafter transfer from the California State University Dormitory
Revenue Fund to the California State University Dormitory Interest
and Redemption Fund the sums required to pay the interest on the
notes and bonds and redeem the principal thereof as the interest
payments and note and bond redemptions fall due for all notes and
bonds issued under the provisions of this article.
90076. Any balance remaining in any of the funds created by this
article after payment of all costs, expenses, and charges authorized
to be expended therefrom, may be allocated and used for other
purposes incidental to the acquisition, construction, furnishing,
equipping, operation and maintenance of such projects authorized
under the provisions of this article as the board may determine.
90077. Moneys in the California State University Dormitory
Construction Fund may be invested by the board subject only to
limitations which may be provided in any resolution authorizing the
issuance of revenue bond anticipation notes or in any indenture
providing for the issuance of revenue bonds. All securities or other
investments made under the provisions of this article shall be held
by the Treasurer as custodian thereof. All interest or other earnings
received pursuant to the investments shall be collected by the
Treasurer, and, on order of the Controller, shall be deposited in the
State Treasury to the credit of the fund from which interest or
other earnings are derived.
90078. After all of the notes and revenue bonds shall have been
fully paid and discharged, or provision for their payment and
discharge irrevocably made, any surplus moneys in the California
State University Dormitory Construction Fund shall, subject to the
limitations and restrictions in any resolution authorizing the
issuance of the notes or in any indenture providing for the issuance
of the revenue bonds, remain available for the acquisition of sites
for, and for the construction, equipping and furnishing of, buildings
for the California State University.
90079. All money in the funds created by the provisions of this
article is hereby appropriated for expenditure in carrying out the
purposes herein provided.
90080. The article shall be liberally construed to carry out the
objects and purposes and the declared policy of the State of
California as in this article set forth.
90081. 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 to determine the validity of bonds issued, or any financing
contract entered into, by the board for the purposes of this
article.
90082. Notwithstanding any other law, the Controller may use the
moneys in the State College Dormitory Building Maintenance and
Equipment Reserve Fund for loans to the General Fund as provided in
Sections 16310 and 16381 of the Government Code. However, interest
shall be paid on all moneys loaned to the General Fund from the State
College Dormitory Building Maintenance and Equipment Reserve Fund.
Interest payable shall be computed at a rate determined by the Pooled
Money Investment Board to be the current earning rate of the fund
from which loaned. This section does not authorize any transfer that
will interfere with the carrying out of the object for which the
State College Dormitory Building Maintenance and Equipment Reserve
Fund was created.
