94140. The authority shall have power to do all of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt and have an official common seal and alter it at
pleasure.
(c) Sue and be sued in its own name, and plead and be impleaded.
(d) Borrow money, issue bonds and notes and other obligations of
the authority, and provide for the rights of the holders thereof as
provided in this chapter.
(e) Acquire, lease as lessee, hold, and dispose of real and
personal property or any interest therein, in the exercise of its
powers and the performance of its duties under this chapter.
(f) Acquire, in the name of the authority by purchase or
otherwise, on the terms and conditions and in the manner as it deems
proper, any land or interest therein and other property that it
determines is reasonably necessary for any project, including any
lands held by any county, municipality, or other governmental
subdivision of the state; and to hold and use the same and to sell,
convey, lease, or otherwise dispose of property so acquired, no
longer necessary for the authority's purposes.
(g) Receive and accept, from any federal or other public agency or
governmental entity, grants or loans for or in aid of the
acquisition or construction of any project, and to receive and accept
aid or contributions from any other source, of either money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which the grants, loans, and
contributions may be made.
(h) Prepare, or cause to be prepared, plans, specifications,
designs, and estimates of costs for the construction and equipment of
projects for participating colleges and participating nonprofit
entities under this chapter, and from time to time to modify those
plans, specifications, designs, or estimates.
(i) By contract or contracts or by its own employees to construct,
acquire, reconstruct, rehabilitate and improve, and furnish and
equip, projects for participating colleges and participating
nonprofit entities.
(j) Employ consulting engineers, architects, accountants,
construction and financial experts, superintendents, and other
employees and agents that may be necessary in its judgment and to fix
their compensation.
(k) Determine the location and character of any project to be
undertaken pursuant to this chapter, and construct, reconstruct,
repair, lease, as lessee or lessor, the same; enter into contracts
for any or all of those purposes; and designate a participating
private college or participating nonprofit entity as its agent to
determine the location and character of a project undertaken by the
participating private college or participating nonprofit entity under
this chapter and, as the agent of the authority, construct,
reconstruct, maintain, repair, operate, lease, as lessee or lessor,
and regulate the same, and, as agent of the authority, to enter into
contracts for any and all of those purposes including contracts for
the management and operation of the project.
(l) Establish rules and regulations for the use of a project or
any portion thereof and to designate a participating private college
or participating nonprofit entity as its agent to establish rules and
regulations for the use of a project undertaken by the participating
private college or participating nonprofit entity.
(m) Generally establish, revise from time to time, and charge and
collect, rates, rents, fees, and other charges for the use of and for
the services furnished or to be furnished by a project or any
portion thereof and contract with holders of its bonds and with any
other person, party, association, corporation, or other body, public
or private, in respect thereof.
(n) Enter into any and all agreements or contracts, execute any
and all instruments, and do and perform any and all acts or things
necessary, convenient, or desirable for the purposes of the authority
or to carry out any power expressly given in this chapter.
(o) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in obligations that are authorized by
law for the investment of trust funds in the custody of the
Treasurer.
(p) Charge, and equitably apportion among participating private
colleges and participating nonprofit entities, its administrative
costs and expenses incurred in the exercise of the powers and duties
conferred by this chapter.
(q) Finance, directly or through an intermediary, or purchase or
take assignments of, or make commitments to finance, directly or
through an intermediary, or purchase or to take assignments of,
student loans, to contract in advance for those student loans, and to
contract in advance for that financing, purchase, or assignment, and
to pay any amounts payable in respect thereto. A student loan shall
be eligible for financing or purchase by the authority or for
assignment hereunder regardless of the repayment status of the loan.
Any pledge made to secure authority financing for student loan
project purposes shall be valid and binding from the time the pledge
is made. The revenues and receipts of property or interest in the
property pledged and thereafter received by the authority, a
participating college or public institution of higher education, a
servicer, a trustee, or a custodian shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of any pledge shall be valid and binding
against all parties having claims of any kind in tort, contract, or
otherwise against the authority, participating college or public
institution of higher education, servicer, trustee, or custodian
irrespective of whether the parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need
be recorded.
(r) Hold or invest in student loans, create pools of student
loans, and sell bonds bearing interest on a taxable or tax-exempt
basis or other interests backed by the pools of student loans.
(s) Contract or otherwise provide for the distribution,
processing, origination, purchase, sale, servicing, securing, and
collection of student loans, the payment of fees, charges, and
administrative expenses in connection therewith, and the funding of
reserves required or provided for in any resolution authorizing, or
trust agreement securing, authority financing for student loan
purposes.
(t) Assist in providing support to participating colleges or
participating nonprofit entities to enhance the market acceptance of
potential bond issues by the authority, including securing probable
or actual credit ratings from nationally recognized bond rating
agencies, providing or obtaining liquidity or credit enhancement,
providing or securing bond reserve funds, performing any other action
deemed necessary by the authority, and incurring necessary expenses,
payable from available authority funds, for any of these purposes.
94141. All expenses incurred in carrying out the provisions of this
chapter shall be payable from funds provided the authority therefor,
and no liability or obligation shall be incurred by the authority
hereunder beyond the extent to which moneys shall have been provided
therefor.
94142. The authority shall establish financial eligibility
standards by studying the creditworthiness and earning capacity of
each project together with the amount of pledged revenues, debt
service coverage, and basic security, in addition to establishing
machinery to monitor the ongoing compliance of each project with
state authority and bond indenture requirements.
94143. The authority is authorized from time to time to issue its
negotiable notes for any corporate purpose and renew from time to
time any notes by the issuance of new notes, whether the notes to be
renewed have or have not matured. The authority may issue notes
partly to renew notes or to discharge other obligations then
outstanding and partly for any other purpose. The notes may be
authorized, sold, executed and delivered in the same manner as bonds.
Any resolution or resolutions authorizing notes of the authority or
any issue thereof may contain any provisions which the authority is
authorized to include in any resolution or resolutions authorizing
bonds of the authority or any issue thereof, and the authority may
include in any notes any terms, covenants or conditions which it is
authorized to include in any bonds. All such notes shall be payable
from revenues of the authority or other moneys available therefor and
not otherwise pledged, subject only to any contractual rights of the
holders of any of its notes or other obligations then outstanding.
94144. (a) The authority is authorized from time to time to issue
its negotiable bonds for any corporate purpose. In anticipation of
the sale of those bonds, the authority may issue negotiable bond
anticipation notes and may renew the same from time to time. The
notes shall be paid from any revenues of the authority or other
moneys available therefor and not otherwise pledged, or from the
proceeds of sale of the bonds of the authority in anticipation of
which they were issued. The notes shall be issued in the same manner
as the bonds. The notes and the resolution or resolutions authorizing
the same may contain any provisions, conditions, or limitations
which a bond resolution of the authority may contain.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds or notes shall be general
obligations of the authority payable from any revenues or moneys of
the authority available therefor and not otherwise pledged, subject
only to any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys and subject to any
agreements with any participating institution. Notwithstanding that
those bonds or notes may be payable from a special fund, they shall
be and be deemed to be for all purposes negotiable instruments,
subject only to the provisions of those bonds or notes for
registration.
(c) (1) The bonds may be issued as serial bonds or as term bonds,
or the authority, in its discretion, may issue bonds of both types.
The bonds shall be authorized by resolution of the authority, and
shall bear the date or dates, mature at a time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in denominations,
be in a form, either coupon or registered, carry registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
the terms of redemption that the resolution or resolutions may
provide. The bonds or notes may be sold by the State Treasurer at
public sale, or the authority, after giving due consideration to the
recommendations of the participating institution or participating
nonprofit entity, may direct the State Treasurer to sell the bonds or
notes at private sale.
(2) In the case of public sale, both of the following shall occur:
(A) The bonds specified in the resolution shall be sold by the
State Treasurer, at a time fixed by him or her, and upon notice that
he or she may deem advisable, or at the time to which the sale shall
have been continued, at public sale, upon sealed bids, to the bidder
whose bid will result in the lowest net interest cost on account of
the bonds.
(B) If no bids are received, or if the State Treasurer determines
that the bids are not satisfactory, the State Treasurer may reject
all bids received, if any, and either readvertise or sell the bonds
at private sale.
(3) Pending preparation of the definitive bonds, the authority may
issue interim receipts or certificates that shall be exchanged for
the definitive bonds.
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to all of
the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of a project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders that may then exist.
(2) The rentals, fees, and other charges to be charged, and the
amounts to be raised in each year thereby, and the use and
disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which that
consent may be given.
(8) Limitations on the amount of moneys derived from the project
to be expended for operating, administrative, or other expenses of
the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.
(10) The mortgaging of a project and the site thereof for the
purpose of securing the bondholders.
(e) Neither the members of the authority, nor any person executing
the bonds or notes, shall be liable personally on the bonds or notes
or be subject to any personal liability or accountability by reason
of the issuance thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes. The authority may hold,
pledge, cancel, or resell the bonds, subject to and in accordance
with agreements with bondholders.
94145. In the discretion of the authority, any bonds issued under
the provisions of this chapter may be secured by a trust agreement by
and between the authority and a corporate trustee or trustees, which
may be any trust company or bank having the powers of a trust
company within or without the state. Such trust agreement or the
resolution providing for the issuance of such bonds may pledge or
assign the revenues to be received or proceeds of any contract or
contracts pledged and may convey or mortgage the project or any
portion thereof. Such trust agreement or resolution providing for the
issuance of such bonds may contain such provisions for protecting
and enforcing the rights and remedies of the bondholders as may be
reasonable and proper and not in violation of law, including
particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company
incorporated under the laws of this state which may act as depositary
of the proceeds of bonds or of revenues or other moneys may furnish
such indemnifying bonds or pledge such securities as may be required
by the authority. Any such trust agreement may set forth the rights
and remedies of the bondholders and of the trustee or trustees, and
may restrict the individual right of action by bondholders. In
addition to the foregoing, any such trust agreement or resolution may
contain such other provisions as the authority may deem reasonable
and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of such trust agreement or resolution
may be treated as a part of the cost of the operation of a project.
94146. (a) Bonds issued under the provisions of this chapter shall
not be deemed to constitute a debt or liability of the state or of
any political subdivision thereof or a pledge of the faith and credit
of the state or of any political subdivision other than the
authority, but shall be payable solely from the funds herein
provided. All bonds shall contain on the face thereof a statement to
the effect that neither the State of California nor the authority
shall be obligated to pay the same or the interest thereon except
from revenues of the project or the portion thereof for which they
are issued and that neither the faith and credit nor the taxing power
of the State of California or of any political subdivision thereof
is pledged to the payment of the principal of or the interest on the
bonds.
(b) The issuance of bonds under the provisions of this chapter
shall not directly or indirectly or contingently obligate the state
or any political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. No provision of this section shall prevent or be construed
to prevent the authority from pledging its full faith and credit or
the full faith and credit of a participating private college or
participating nonprofit entity to the payment of bonds or issue of
bonds authorized pursuant to this chapter.
94147. (a) The authority may fix, revise, charge, and collect
rates, rents, fees, and charges for the use of and for the services
furnished or to be furnished by each project, and may contract with
any person, partnership, association or corporation, or other body,
public or private, in respect thereof. These rates, rents, fees, and
charges shall be fixed and adjusted in respect of the aggregate of
rents, rates, fees, and charges from the project so as to provide
funds sufficient with other revenues or moneys, if any, to accomplish
all of the following:
(1) Pay the cost of maintaining, repairing, and operating the
project and each and every portion thereof, to the extent that the
payment of that cost has not otherwise been adequately provided for.
(2) Pay the principal of, and the interest on, outstanding bonds
of the authority issued in respect of that project as the same shall
become due and payable.
(3) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, bonds of the
authority.
(b) (1) The rates, rents, fees, and charges referenced in
subdivision (a) are not subject to supervision or regulation by any
department, commission, board, body, bureau, or agency of this state
other than the authority. A sufficient amount of the revenues derived
in respect of a project, except a part of those revenues that is
necessary to pay the cost of maintenance, repair, and operation and
to provide reserves for renewals, replacements, extensions,
enlargements, and improvements as may be provided for in the
resolution authorizing the issuance of any bonds of the authority or
in the trust agreement securing the same, shall be set aside at
regular intervals provided in the resolution or trust agreement in a
sinking or other similar fund.
(2) The fund established pursuant to paragraph (1) is pledged to,
and charged with, the payment of the principal of and the interest
on, the bonds as the same shall become due, and the redemption price
or the purchase price of bonds retired by call or purchase as therein
provided.
(3) The pledge required by paragraph (2) shall be valid and
binding from the time when the pledge is made. The rates, rents, fees
and charges and other revenues or other moneys so pledged and
thereafter received by the authority shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of that pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract,
or otherwise against the authority, irrespective of whether the
parties have notice thereof. Neither the resolution nor any trust
agreement by which a pledge is created need be filed or recorded
except in the records of the authority.
(4) The use and disposition of moneys to the credit of the sinking
or other similar fund shall be subject to the resolution authorizing
the issuance of those bonds or of that trust agreement. Except as
may otherwise be provided in that resolution or that trust agreement,
the sinking or other similar fund shall be a fund for all of those
bonds issued to finance projects at a participating college, or bonds
issued to finance a project of a participating nonprofit entity,
without distinction or priority of one over another.
(5) The authority, in the resolution or trust agreement, may
provide that the sinking or other similar fund shall be either of the
following:
(A) The fund for a particular project at a participating college
and for the bonds issued to finance a particular project and may,
additionally, permit and provide for the issuance of bonds having a
subordinate lien in respect of the security herein authorized to
other bonds of the authority and, in this case, the authority may
create separate sinking or other similar funds in respect of those
subordinate lien bonds.
(B) The fund for a particular project of a participating nonprofit
entity.
94148. Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and the trustee
or trustees under any trust agreement, except to the extent the
rights herein given may be restricted by any resolution authorizing
the issuance of, or any such trust agreement securing, such bonds,
may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of
the state or granted hereunder or under such resolution or trust
agreement, and may enforce and compel the performance of all duties
required by this chapter or by such resolution or trust agreement to
be performed by the authority or by any officer, employee or agent
thereof, including the fixing, charging, and collecting of the rates,
rents, fees, and charges herein authorized and required by the
provisions of such resolution or trust agreement to be fixed,
established, and collected.
94149. All moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be deemed to be trust funds to be held and applied solely as
provided in this chapter. Until the funds are applied as provided in
this chapter, and notwithstanding any other provision of law, the
moneys may be invested in any obligations or securities authorized by
resolutions of the authority authorizing the issuance of the bonds.
Any officer with whom, or any bank or trust company with which, the
moneys are deposited shall act as trustee of the moneys and shall
hold and apply the moneys for the purposes hereof, subject to any
regulations adopted pursuant to this chapter and the resolution
authorizing the issuance of any bonds or the trust agreement securing
the bonds.
94150. (a) The authority may issue bonds of the authority for the
purpose of refunding any bonds or notes of the authority then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest date of
redemption or subsequent date of redemption, purchase or maturity of
the bonds, to be refunded and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion of a project.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase, retirement at maturity, or redemption prior to
maturity of any outstanding bonds either on their earliest redemption
date or dates, any subsequent redemption date or dates, upon their
purchase or maturity, or paid to a third person to assume the
authority's obligation to make the payments, and may, pending that
application, be placed in escrow to be applied to the purchase,
retirement at maturity, or redemption on the date or dates determined
by the authority.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the authority, payable or maturing at the time or
times as are appropriate to assure the prompt payment of the
principal, interest, and redemption premium, if any, of the
outstanding bonds to be refunded at maturity or redemption of the
bonds to be refunded either at their earliest redemption date or
dates or any subsequent redemption date or dates. The interest,
income and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be
refunded or to the payment of interest on the refunding bonds. After
the terms of the escrow have been fully satisfied and carried out,
any balance of the proceeds and interest, income and profits, if any,
earned or realized on the investments thereof may be returned to the
authority for use by the authority.
(d) The portion of the proceeds of any bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested in
obligations or securities authorized by resolution of the authority,
maturing not later than the time or times when the proceeds will be
needed for the purpose of paying all or any part of the cost. The
interest, income, and profits, if any, earned or realized on the
investment may be applied to the payment of all or any part of the
cost or may be used by the authority in any lawful manner.
(e) All of those refunding bonds are subject to this chapter in
the same manner and to the same extent as other bonds issued pursuant
to this chapter.
94151. (a) The authority is hereby authorized to loan funds to a
participating institution and to provide for the issuance of bonds
for the purpose of refinancing projects not originally funded
pursuant to this chapter, such refinancing to include the repayment
of costs, as defined in Section 94110, incurred for projects by the
participating institution and which have a completion date subsequent
to December 29, 1969.
(b) For purposes of this section, "completion date" shall mean, in
the case of construction or renovation of a project, the date on
which the notice of completion is filed, and, in the case of the
acquisition of a project, the date of such acquisition.
(c) All such bonds shall be subject to the provisions of this
chapter in the same manner and to the same extent as other bonds
issued pursuant to this chapter.
94152. Bonds and notes issued by the authority under the provisions
of this chapter are hereby made securities in which all banks,
bankers, savings banks, trust companies, savings and loan
associations, investment companies and other persons carrying on a
banking business, all insurance companies, insurance associations,
and other persons carrying on an insurance business, and all
administrators, executors, guardians, trustees and other fiduciaries,
and all other persons whatsoever who now are or may hereafter be
authorized to invest in bonds or other obligations of the state, may
properly and legally invest any funds, including capital belonging to
them or within their control; and said bonds, notes or other
securities or obligations are hereby made securities which may
properly and legally be deposited with and received by any state or
municipal officers or agency of the state for any purpose for which
the deposit of bonds or other obligations of the state is now or may
hereafter be authorized by law.
94154. The State of California pledges and agrees with the holders
of the bonds, notes, and other obligations issued pursuant to
authority contained in this chapter, and with those parties who may
enter into contracts with the authority pursuant to this chapter,
that the state will not limit, alter, or restrict the rights hereby
vested in the authority and the participating private colleges and
participating nonprofit entities to maintain, construct, reconstruct,
and operate any project as defined in this chapter or to establish
and collect the rents, fees, receipts, or other charges as may be
convenient or necessary to produce sufficient revenues to meet the
expenses of maintenance and operation thereof and to fulfill the
terms of any agreements made with the holders of bonds authorized by
this chapter, and with the parties who may enter into contracts with
the authority pursuant to this chapter, or in any way impair the
rights or remedies of the holders of those bonds or those parties
until the bonds, together with interest thereon, are fully paid and
discharged and the contracts are fully performed on the part of the
authority. The authority as a public body corporate and politic may
include the pledge herein made in its bonds and contracts.
94155. On or before March 31 in each year the authority shall make
an annual report of its activities for the preceding calendar year to
the Governor and the Legislature. Each such report shall set forth a
complete operating and financial statement covering the authority's
operations during the year. The authority shall cause an audit of its
books and accounts to be made at least once in each year by
certified public accountants. The authority shall also consult with
the California Postsecondary Education Commission and the Student Aid
Commission with respect to the need for additional financing of
student loan projects.
94156. The exercise of the powers granted by this chapter will be
in all respects for the benefit of the people of this state, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions, and as the
operation and maintenance of a project by the authority will
constitute the performance of an essential public function, neither
the authority nor its agent shall be required to pay any taxes or
assessments upon or in respect of a project or any property acquired
or used by the authority under the provisions of this chapter, or
upon the income therefrom, and any bonds issued under the provisions
of this chapter, their transfer and the income therefrom, shall at
all times be free from taxation of every kind by the state and by the
municipalities and other political subdivisions in the state.
94140. The authority shall have power to do all of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt and have an official common seal and alter it at
pleasure.
(c) Sue and be sued in its own name, and plead and be impleaded.
(d) Borrow money, issue bonds and notes and other obligations of
the authority, and provide for the rights of the holders thereof as
provided in this chapter.
(e) Acquire, lease as lessee, hold, and dispose of real and
personal property or any interest therein, in the exercise of its
powers and the performance of its duties under this chapter.
(f) Acquire, in the name of the authority by purchase or
otherwise, on the terms and conditions and in the manner as it deems
proper, any land or interest therein and other property that it
determines is reasonably necessary for any project, including any
lands held by any county, municipality, or other governmental
subdivision of the state; and to hold and use the same and to sell,
convey, lease, or otherwise dispose of property so acquired, no
longer necessary for the authority's purposes.
(g) Receive and accept, from any federal or other public agency or
governmental entity, grants or loans for or in aid of the
acquisition or construction of any project, and to receive and accept
aid or contributions from any other source, of either money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which the grants, loans, and
contributions may be made.
(h) Prepare, or cause to be prepared, plans, specifications,
designs, and estimates of costs for the construction and equipment of
projects for participating colleges and participating nonprofit
entities under this chapter, and from time to time to modify those
plans, specifications, designs, or estimates.
(i) By contract or contracts or by its own employees to construct,
acquire, reconstruct, rehabilitate and improve, and furnish and
equip, projects for participating colleges and participating
nonprofit entities.
(j) Employ consulting engineers, architects, accountants,
construction and financial experts, superintendents, and other
employees and agents that may be necessary in its judgment and to fix
their compensation.
(k) Determine the location and character of any project to be
undertaken pursuant to this chapter, and construct, reconstruct,
repair, lease, as lessee or lessor, the same; enter into contracts
for any or all of those purposes; and designate a participating
private college or participating nonprofit entity as its agent to
determine the location and character of a project undertaken by the
participating private college or participating nonprofit entity under
this chapter and, as the agent of the authority, construct,
reconstruct, maintain, repair, operate, lease, as lessee or lessor,
and regulate the same, and, as agent of the authority, to enter into
contracts for any and all of those purposes including contracts for
the management and operation of the project.
(l) Establish rules and regulations for the use of a project or
any portion thereof and to designate a participating private college
or participating nonprofit entity as its agent to establish rules and
regulations for the use of a project undertaken by the participating
private college or participating nonprofit entity.
(m) Generally establish, revise from time to time, and charge and
collect, rates, rents, fees, and other charges for the use of and for
the services furnished or to be furnished by a project or any
portion thereof and contract with holders of its bonds and with any
other person, party, association, corporation, or other body, public
or private, in respect thereof.
(n) Enter into any and all agreements or contracts, execute any
and all instruments, and do and perform any and all acts or things
necessary, convenient, or desirable for the purposes of the authority
or to carry out any power expressly given in this chapter.
(o) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in obligations that are authorized by
law for the investment of trust funds in the custody of the
Treasurer.
(p) Charge, and equitably apportion among participating private
colleges and participating nonprofit entities, its administrative
costs and expenses incurred in the exercise of the powers and duties
conferred by this chapter.
(q) Finance, directly or through an intermediary, or purchase or
take assignments of, or make commitments to finance, directly or
through an intermediary, or purchase or to take assignments of,
student loans, to contract in advance for those student loans, and to
contract in advance for that financing, purchase, or assignment, and
to pay any amounts payable in respect thereto. A student loan shall
be eligible for financing or purchase by the authority or for
assignment hereunder regardless of the repayment status of the loan.
Any pledge made to secure authority financing for student loan
project purposes shall be valid and binding from the time the pledge
is made. The revenues and receipts of property or interest in the
property pledged and thereafter received by the authority, a
participating college or public institution of higher education, a
servicer, a trustee, or a custodian shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of any pledge shall be valid and binding
against all parties having claims of any kind in tort, contract, or
otherwise against the authority, participating college or public
institution of higher education, servicer, trustee, or custodian
irrespective of whether the parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need
be recorded.
(r) Hold or invest in student loans, create pools of student
loans, and sell bonds bearing interest on a taxable or tax-exempt
basis or other interests backed by the pools of student loans.
(s) Contract or otherwise provide for the distribution,
processing, origination, purchase, sale, servicing, securing, and
collection of student loans, the payment of fees, charges, and
administrative expenses in connection therewith, and the funding of
reserves required or provided for in any resolution authorizing, or
trust agreement securing, authority financing for student loan
purposes.
(t) Assist in providing support to participating colleges or
participating nonprofit entities to enhance the market acceptance of
potential bond issues by the authority, including securing probable
or actual credit ratings from nationally recognized bond rating
agencies, providing or obtaining liquidity or credit enhancement,
providing or securing bond reserve funds, performing any other action
deemed necessary by the authority, and incurring necessary expenses,
payable from available authority funds, for any of these purposes.
94141. All expenses incurred in carrying out the provisions of this
chapter shall be payable from funds provided the authority therefor,
and no liability or obligation shall be incurred by the authority
hereunder beyond the extent to which moneys shall have been provided
therefor.
94142. The authority shall establish financial eligibility
standards by studying the creditworthiness and earning capacity of
each project together with the amount of pledged revenues, debt
service coverage, and basic security, in addition to establishing
machinery to monitor the ongoing compliance of each project with
state authority and bond indenture requirements.
94143. The authority is authorized from time to time to issue its
negotiable notes for any corporate purpose and renew from time to
time any notes by the issuance of new notes, whether the notes to be
renewed have or have not matured. The authority may issue notes
partly to renew notes or to discharge other obligations then
outstanding and partly for any other purpose. The notes may be
authorized, sold, executed and delivered in the same manner as bonds.
Any resolution or resolutions authorizing notes of the authority or
any issue thereof may contain any provisions which the authority is
authorized to include in any resolution or resolutions authorizing
bonds of the authority or any issue thereof, and the authority may
include in any notes any terms, covenants or conditions which it is
authorized to include in any bonds. All such notes shall be payable
from revenues of the authority or other moneys available therefor and
not otherwise pledged, subject only to any contractual rights of the
holders of any of its notes or other obligations then outstanding.
94144. (a) The authority is authorized from time to time to issue
its negotiable bonds for any corporate purpose. In anticipation of
the sale of those bonds, the authority may issue negotiable bond
anticipation notes and may renew the same from time to time. The
notes shall be paid from any revenues of the authority or other
moneys available therefor and not otherwise pledged, or from the
proceeds of sale of the bonds of the authority in anticipation of
which they were issued. The notes shall be issued in the same manner
as the bonds. The notes and the resolution or resolutions authorizing
the same may contain any provisions, conditions, or limitations
which a bond resolution of the authority may contain.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds or notes shall be general
obligations of the authority payable from any revenues or moneys of
the authority available therefor and not otherwise pledged, subject
only to any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys and subject to any
agreements with any participating institution. Notwithstanding that
those bonds or notes may be payable from a special fund, they shall
be and be deemed to be for all purposes negotiable instruments,
subject only to the provisions of those bonds or notes for
registration.
(c) (1) The bonds may be issued as serial bonds or as term bonds,
or the authority, in its discretion, may issue bonds of both types.
The bonds shall be authorized by resolution of the authority, and
shall bear the date or dates, mature at a time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in denominations,
be in a form, either coupon or registered, carry registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
the terms of redemption that the resolution or resolutions may
provide. The bonds or notes may be sold by the State Treasurer at
public sale, or the authority, after giving due consideration to the
recommendations of the participating institution or participating
nonprofit entity, may direct the State Treasurer to sell the bonds or
notes at private sale.
(2) In the case of public sale, both of the following shall occur:
(A) The bonds specified in the resolution shall be sold by the
State Treasurer, at a time fixed by him or her, and upon notice that
he or she may deem advisable, or at the time to which the sale shall
have been continued, at public sale, upon sealed bids, to the bidder
whose bid will result in the lowest net interest cost on account of
the bonds.
(B) If no bids are received, or if the State Treasurer determines
that the bids are not satisfactory, the State Treasurer may reject
all bids received, if any, and either readvertise or sell the bonds
at private sale.
(3) Pending preparation of the definitive bonds, the authority may
issue interim receipts or certificates that shall be exchanged for
the definitive bonds.
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to all of
the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of a project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders that may then exist.
(2) The rentals, fees, and other charges to be charged, and the
amounts to be raised in each year thereby, and the use and
disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which that
consent may be given.
(8) Limitations on the amount of moneys derived from the project
to be expended for operating, administrative, or other expenses of
the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.
(10) The mortgaging of a project and the site thereof for the
purpose of securing the bondholders.
(e) Neither the members of the authority, nor any person executing
the bonds or notes, shall be liable personally on the bonds or notes
or be subject to any personal liability or accountability by reason
of the issuance thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes. The authority may hold,
pledge, cancel, or resell the bonds, subject to and in accordance
with agreements with bondholders.
94145. In the discretion of the authority, any bonds issued under
the provisions of this chapter may be secured by a trust agreement by
and between the authority and a corporate trustee or trustees, which
may be any trust company or bank having the powers of a trust
company within or without the state. Such trust agreement or the
resolution providing for the issuance of such bonds may pledge or
assign the revenues to be received or proceeds of any contract or
contracts pledged and may convey or mortgage the project or any
portion thereof. Such trust agreement or resolution providing for the
issuance of such bonds may contain such provisions for protecting
and enforcing the rights and remedies of the bondholders as may be
reasonable and proper and not in violation of law, including
particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company
incorporated under the laws of this state which may act as depositary
of the proceeds of bonds or of revenues or other moneys may furnish
such indemnifying bonds or pledge such securities as may be required
by the authority. Any such trust agreement may set forth the rights
and remedies of the bondholders and of the trustee or trustees, and
may restrict the individual right of action by bondholders. In
addition to the foregoing, any such trust agreement or resolution may
contain such other provisions as the authority may deem reasonable
and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of such trust agreement or resolution
may be treated as a part of the cost of the operation of a project.
94146. (a) Bonds issued under the provisions of this chapter shall
not be deemed to constitute a debt or liability of the state or of
any political subdivision thereof or a pledge of the faith and credit
of the state or of any political subdivision other than the
authority, but shall be payable solely from the funds herein
provided. All bonds shall contain on the face thereof a statement to
the effect that neither the State of California nor the authority
shall be obligated to pay the same or the interest thereon except
from revenues of the project or the portion thereof for which they
are issued and that neither the faith and credit nor the taxing power
of the State of California or of any political subdivision thereof
is pledged to the payment of the principal of or the interest on the
bonds.
(b) The issuance of bonds under the provisions of this chapter
shall not directly or indirectly or contingently obligate the state
or any political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. No provision of this section shall prevent or be construed
to prevent the authority from pledging its full faith and credit or
the full faith and credit of a participating private college or
participating nonprofit entity to the payment of bonds or issue of
bonds authorized pursuant to this chapter.
94147. (a) The authority may fix, revise, charge, and collect
rates, rents, fees, and charges for the use of and for the services
furnished or to be furnished by each project, and may contract with
any person, partnership, association or corporation, or other body,
public or private, in respect thereof. These rates, rents, fees, and
charges shall be fixed and adjusted in respect of the aggregate of
rents, rates, fees, and charges from the project so as to provide
funds sufficient with other revenues or moneys, if any, to accomplish
all of the following:
(1) Pay the cost of maintaining, repairing, and operating the
project and each and every portion thereof, to the extent that the
payment of that cost has not otherwise been adequately provided for.
(2) Pay the principal of, and the interest on, outstanding bonds
of the authority issued in respect of that project as the same shall
become due and payable.
(3) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, bonds of the
authority.
(b) (1) The rates, rents, fees, and charges referenced in
subdivision (a) are not subject to supervision or regulation by any
department, commission, board, body, bureau, or agency of this state
other than the authority. A sufficient amount of the revenues derived
in respect of a project, except a part of those revenues that is
necessary to pay the cost of maintenance, repair, and operation and
to provide reserves for renewals, replacements, extensions,
enlargements, and improvements as may be provided for in the
resolution authorizing the issuance of any bonds of the authority or
in the trust agreement securing the same, shall be set aside at
regular intervals provided in the resolution or trust agreement in a
sinking or other similar fund.
(2) The fund established pursuant to paragraph (1) is pledged to,
and charged with, the payment of the principal of and the interest
on, the bonds as the same shall become due, and the redemption price
or the purchase price of bonds retired by call or purchase as therein
provided.
(3) The pledge required by paragraph (2) shall be valid and
binding from the time when the pledge is made. The rates, rents, fees
and charges and other revenues or other moneys so pledged and
thereafter received by the authority shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of that pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract,
or otherwise against the authority, irrespective of whether the
parties have notice thereof. Neither the resolution nor any trust
agreement by which a pledge is created need be filed or recorded
except in the records of the authority.
(4) The use and disposition of moneys to the credit of the sinking
or other similar fund shall be subject to the resolution authorizing
the issuance of those bonds or of that trust agreement. Except as
may otherwise be provided in that resolution or that trust agreement,
the sinking or other similar fund shall be a fund for all of those
bonds issued to finance projects at a participating college, or bonds
issued to finance a project of a participating nonprofit entity,
without distinction or priority of one over another.
(5) The authority, in the resolution or trust agreement, may
provide that the sinking or other similar fund shall be either of the
following:
(A) The fund for a particular project at a participating college
and for the bonds issued to finance a particular project and may,
additionally, permit and provide for the issuance of bonds having a
subordinate lien in respect of the security herein authorized to
other bonds of the authority and, in this case, the authority may
create separate sinking or other similar funds in respect of those
subordinate lien bonds.
(B) The fund for a particular project of a participating nonprofit
entity.
94148. Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and the trustee
or trustees under any trust agreement, except to the extent the
rights herein given may be restricted by any resolution authorizing
the issuance of, or any such trust agreement securing, such bonds,
may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of
the state or granted hereunder or under such resolution or trust
agreement, and may enforce and compel the performance of all duties
required by this chapter or by such resolution or trust agreement to
be performed by the authority or by any officer, employee or agent
thereof, including the fixing, charging, and collecting of the rates,
rents, fees, and charges herein authorized and required by the
provisions of such resolution or trust agreement to be fixed,
established, and collected.
94149. All moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be deemed to be trust funds to be held and applied solely as
provided in this chapter. Until the funds are applied as provided in
this chapter, and notwithstanding any other provision of law, the
moneys may be invested in any obligations or securities authorized by
resolutions of the authority authorizing the issuance of the bonds.
Any officer with whom, or any bank or trust company with which, the
moneys are deposited shall act as trustee of the moneys and shall
hold and apply the moneys for the purposes hereof, subject to any
regulations adopted pursuant to this chapter and the resolution
authorizing the issuance of any bonds or the trust agreement securing
the bonds.
94150. (a) The authority may issue bonds of the authority for the
purpose of refunding any bonds or notes of the authority then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest date of
redemption or subsequent date of redemption, purchase or maturity of
the bonds, to be refunded and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion of a project.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase, retirement at maturity, or redemption prior to
maturity of any outstanding bonds either on their earliest redemption
date or dates, any subsequent redemption date or dates, upon their
purchase or maturity, or paid to a third person to assume the
authority's obligation to make the payments, and may, pending that
application, be placed in escrow to be applied to the purchase,
retirement at maturity, or redemption on the date or dates determined
by the authority.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the authority, payable or maturing at the time or
times as are appropriate to assure the prompt payment of the
principal, interest, and redemption premium, if any, of the
outstanding bonds to be refunded at maturity or redemption of the
bonds to be refunded either at their earliest redemption date or
dates or any subsequent redemption date or dates. The interest,
income and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be
refunded or to the payment of interest on the refunding bonds. After
the terms of the escrow have been fully satisfied and carried out,
any balance of the proceeds and interest, income and profits, if any,
earned or realized on the investments thereof may be returned to the
authority for use by the authority.
(d) The portion of the proceeds of any bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested in
obligations or securities authorized by resolution of the authority,
maturing not later than the time or times when the proceeds will be
needed for the purpose of paying all or any part of the cost. The
interest, income, and profits, if any, earned or realized on the
investment may be applied to the payment of all or any part of the
cost or may be used by the authority in any lawful manner.
(e) All of those refunding bonds are subject to this chapter in
the same manner and to the same extent as other bonds issued pursuant
to this chapter.
94151. (a) The authority is hereby authorized to loan funds to a
participating institution and to provide for the issuance of bonds
for the purpose of refinancing projects not originally funded
pursuant to this chapter, such refinancing to include the repayment
of costs, as defined in Section 94110, incurred for projects by the
participating institution and which have a completion date subsequent
to December 29, 1969.
(b) For purposes of this section, "completion date" shall mean, in
the case of construction or renovation of a project, the date on
which the notice of completion is filed, and, in the case of the
acquisition of a project, the date of such acquisition.
(c) All such bonds shall be subject to the provisions of this
chapter in the same manner and to the same extent as other bonds
issued pursuant to this chapter.
94152. Bonds and notes issued by the authority under the provisions
of this chapter are hereby made securities in which all banks,
bankers, savings banks, trust companies, savings and loan
associations, investment companies and other persons carrying on a
banking business, all insurance companies, insurance associations,
and other persons carrying on an insurance business, and all
administrators, executors, guardians, trustees and other fiduciaries,
and all other persons whatsoever who now are or may hereafter be
authorized to invest in bonds or other obligations of the state, may
properly and legally invest any funds, including capital belonging to
them or within their control; and said bonds, notes or other
securities or obligations are hereby made securities which may
properly and legally be deposited with and received by any state or
municipal officers or agency of the state for any purpose for which
the deposit of bonds or other obligations of the state is now or may
hereafter be authorized by law.
94154. The State of California pledges and agrees with the holders
of the bonds, notes, and other obligations issued pursuant to
authority contained in this chapter, and with those parties who may
enter into contracts with the authority pursuant to this chapter,
that the state will not limit, alter, or restrict the rights hereby
vested in the authority and the participating private colleges and
participating nonprofit entities to maintain, construct, reconstruct,
and operate any project as defined in this chapter or to establish
and collect the rents, fees, receipts, or other charges as may be
convenient or necessary to produce sufficient revenues to meet the
expenses of maintenance and operation thereof and to fulfill the
terms of any agreements made with the holders of bonds authorized by
this chapter, and with the parties who may enter into contracts with
the authority pursuant to this chapter, or in any way impair the
rights or remedies of the holders of those bonds or those parties
until the bonds, together with interest thereon, are fully paid and
discharged and the contracts are fully performed on the part of the
authority. The authority as a public body corporate and politic may
include the pledge herein made in its bonds and contracts.
94155. On or before March 31 in each year the authority shall make
an annual report of its activities for the preceding calendar year to
the Governor and the Legislature. Each such report shall set forth a
complete operating and financial statement covering the authority's
operations during the year. The authority shall cause an audit of its
books and accounts to be made at least once in each year by
certified public accountants. The authority shall also consult with
the California Postsecondary Education Commission and the Student Aid
Commission with respect to the need for additional financing of
student loan projects.
94156. The exercise of the powers granted by this chapter will be
in all respects for the benefit of the people of this state, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions, and as the
operation and maintenance of a project by the authority will
constitute the performance of an essential public function, neither
the authority nor its agent shall be required to pay any taxes or
assessments upon or in respect of a project or any property acquired
or used by the authority under the provisions of this chapter, or
upon the income therefrom, and any bonds issued under the provisions
of this chapter, their transfer and the income therefrom, shall at
all times be free from taxation of every kind by the state and by the
municipalities and other political subdivisions in the state.
94140. The authority shall have power to do all of the following:
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt and have an official common seal and alter it at
pleasure.
(c) Sue and be sued in its own name, and plead and be impleaded.
(d) Borrow money, issue bonds and notes and other obligations of
the authority, and provide for the rights of the holders thereof as
provided in this chapter.
(e) Acquire, lease as lessee, hold, and dispose of real and
personal property or any interest therein, in the exercise of its
powers and the performance of its duties under this chapter.
(f) Acquire, in the name of the authority by purchase or
otherwise, on the terms and conditions and in the manner as it deems
proper, any land or interest therein and other property that it
determines is reasonably necessary for any project, including any
lands held by any county, municipality, or other governmental
subdivision of the state; and to hold and use the same and to sell,
convey, lease, or otherwise dispose of property so acquired, no
longer necessary for the authority's purposes.
(g) Receive and accept, from any federal or other public agency or
governmental entity, grants or loans for or in aid of the
acquisition or construction of any project, and to receive and accept
aid or contributions from any other source, of either money,
property, labor, or other things of value, to be held, used, and
applied only for the purposes for which the grants, loans, and
contributions may be made.
(h) Prepare, or cause to be prepared, plans, specifications,
designs, and estimates of costs for the construction and equipment of
projects for participating colleges and participating nonprofit
entities under this chapter, and from time to time to modify those
plans, specifications, designs, or estimates.
(i) By contract or contracts or by its own employees to construct,
acquire, reconstruct, rehabilitate and improve, and furnish and
equip, projects for participating colleges and participating
nonprofit entities.
(j) Employ consulting engineers, architects, accountants,
construction and financial experts, superintendents, and other
employees and agents that may be necessary in its judgment and to fix
their compensation.
(k) Determine the location and character of any project to be
undertaken pursuant to this chapter, and construct, reconstruct,
repair, lease, as lessee or lessor, the same; enter into contracts
for any or all of those purposes; and designate a participating
private college or participating nonprofit entity as its agent to
determine the location and character of a project undertaken by the
participating private college or participating nonprofit entity under
this chapter and, as the agent of the authority, construct,
reconstruct, maintain, repair, operate, lease, as lessee or lessor,
and regulate the same, and, as agent of the authority, to enter into
contracts for any and all of those purposes including contracts for
the management and operation of the project.
(l) Establish rules and regulations for the use of a project or
any portion thereof and to designate a participating private college
or participating nonprofit entity as its agent to establish rules and
regulations for the use of a project undertaken by the participating
private college or participating nonprofit entity.
(m) Generally establish, revise from time to time, and charge and
collect, rates, rents, fees, and other charges for the use of and for
the services furnished or to be furnished by a project or any
portion thereof and contract with holders of its bonds and with any
other person, party, association, corporation, or other body, public
or private, in respect thereof.
(n) Enter into any and all agreements or contracts, execute any
and all instruments, and do and perform any and all acts or things
necessary, convenient, or desirable for the purposes of the authority
or to carry out any power expressly given in this chapter.
(o) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in obligations that are authorized by
law for the investment of trust funds in the custody of the
Treasurer.
(p) Charge, and equitably apportion among participating private
colleges and participating nonprofit entities, its administrative
costs and expenses incurred in the exercise of the powers and duties
conferred by this chapter.
(q) Finance, directly or through an intermediary, or purchase or
take assignments of, or make commitments to finance, directly or
through an intermediary, or purchase or to take assignments of,
student loans, to contract in advance for those student loans, and to
contract in advance for that financing, purchase, or assignment, and
to pay any amounts payable in respect thereto. A student loan shall
be eligible for financing or purchase by the authority or for
assignment hereunder regardless of the repayment status of the loan.
Any pledge made to secure authority financing for student loan
project purposes shall be valid and binding from the time the pledge
is made. The revenues and receipts of property or interest in the
property pledged and thereafter received by the authority, a
participating college or public institution of higher education, a
servicer, a trustee, or a custodian shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of any pledge shall be valid and binding
against all parties having claims of any kind in tort, contract, or
otherwise against the authority, participating college or public
institution of higher education, servicer, trustee, or custodian
irrespective of whether the parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need
be recorded.
(r) Hold or invest in student loans, create pools of student
loans, and sell bonds bearing interest on a taxable or tax-exempt
basis or other interests backed by the pools of student loans.
(s) Contract or otherwise provide for the distribution,
processing, origination, purchase, sale, servicing, securing, and
collection of student loans, the payment of fees, charges, and
administrative expenses in connection therewith, and the funding of
reserves required or provided for in any resolution authorizing, or
trust agreement securing, authority financing for student loan
purposes.
(t) Assist in providing support to participating colleges or
participating nonprofit entities to enhance the market acceptance of
potential bond issues by the authority, including securing probable
or actual credit ratings from nationally recognized bond rating
agencies, providing or obtaining liquidity or credit enhancement,
providing or securing bond reserve funds, performing any other action
deemed necessary by the authority, and incurring necessary expenses,
payable from available authority funds, for any of these purposes.
94141. All expenses incurred in carrying out the provisions of this
chapter shall be payable from funds provided the authority therefor,
and no liability or obligation shall be incurred by the authority
hereunder beyond the extent to which moneys shall have been provided
therefor.
94142. The authority shall establish financial eligibility
standards by studying the creditworthiness and earning capacity of
each project together with the amount of pledged revenues, debt
service coverage, and basic security, in addition to establishing
machinery to monitor the ongoing compliance of each project with
state authority and bond indenture requirements.
94143. The authority is authorized from time to time to issue its
negotiable notes for any corporate purpose and renew from time to
time any notes by the issuance of new notes, whether the notes to be
renewed have or have not matured. The authority may issue notes
partly to renew notes or to discharge other obligations then
outstanding and partly for any other purpose. The notes may be
authorized, sold, executed and delivered in the same manner as bonds.
Any resolution or resolutions authorizing notes of the authority or
any issue thereof may contain any provisions which the authority is
authorized to include in any resolution or resolutions authorizing
bonds of the authority or any issue thereof, and the authority may
include in any notes any terms, covenants or conditions which it is
authorized to include in any bonds. All such notes shall be payable
from revenues of the authority or other moneys available therefor and
not otherwise pledged, subject only to any contractual rights of the
holders of any of its notes or other obligations then outstanding.
94144. (a) The authority is authorized from time to time to issue
its negotiable bonds for any corporate purpose. In anticipation of
the sale of those bonds, the authority may issue negotiable bond
anticipation notes and may renew the same from time to time. The
notes shall be paid from any revenues of the authority or other
moneys available therefor and not otherwise pledged, or from the
proceeds of sale of the bonds of the authority in anticipation of
which they were issued. The notes shall be issued in the same manner
as the bonds. The notes and the resolution or resolutions authorizing
the same may contain any provisions, conditions, or limitations
which a bond resolution of the authority may contain.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds or notes shall be general
obligations of the authority payable from any revenues or moneys of
the authority available therefor and not otherwise pledged, subject
only to any agreements with the holders of particular bonds or notes
pledging any particular revenues or moneys and subject to any
agreements with any participating institution. Notwithstanding that
those bonds or notes may be payable from a special fund, they shall
be and be deemed to be for all purposes negotiable instruments,
subject only to the provisions of those bonds or notes for
registration.
(c) (1) The bonds may be issued as serial bonds or as term bonds,
or the authority, in its discretion, may issue bonds of both types.
The bonds shall be authorized by resolution of the authority, and
shall bear the date or dates, mature at a time or times, not
exceeding 50 years from their respective dates, bear interest at the
rate or rates, be payable at the time or times, be in denominations,
be in a form, either coupon or registered, carry registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
the terms of redemption that the resolution or resolutions may
provide. The bonds or notes may be sold by the State Treasurer at
public sale, or the authority, after giving due consideration to the
recommendations of the participating institution or participating
nonprofit entity, may direct the State Treasurer to sell the bonds or
notes at private sale.
(2) In the case of public sale, both of the following shall occur:
(A) The bonds specified in the resolution shall be sold by the
State Treasurer, at a time fixed by him or her, and upon notice that
he or she may deem advisable, or at the time to which the sale shall
have been continued, at public sale, upon sealed bids, to the bidder
whose bid will result in the lowest net interest cost on account of
the bonds.
(B) If no bids are received, or if the State Treasurer determines
that the bids are not satisfactory, the State Treasurer may reject
all bids received, if any, and either readvertise or sell the bonds
at private sale.
(3) Pending preparation of the definitive bonds, the authority may
issue interim receipts or certificates that shall be exchanged for
the definitive bonds.
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds to be authorized, as to all of
the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of a project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders that may then exist.
(2) The rentals, fees, and other charges to be charged, and the
amounts to be raised in each year thereby, and the use and
disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(7) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which that
consent may be given.
(8) Limitations on the amount of moneys derived from the project
to be expended for operating, administrative, or other expenses of
the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.
(10) The mortgaging of a project and the site thereof for the
purpose of securing the bondholders.
(e) Neither the members of the authority, nor any person executing
the bonds or notes, shall be liable personally on the bonds or notes
or be subject to any personal liability or accountability by reason
of the issuance thereof.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes. The authority may hold,
pledge, cancel, or resell the bonds, subject to and in accordance
with agreements with bondholders.
94145. In the discretion of the authority, any bonds issued under
the provisions of this chapter may be secured by a trust agreement by
and between the authority and a corporate trustee or trustees, which
may be any trust company or bank having the powers of a trust
company within or without the state. Such trust agreement or the
resolution providing for the issuance of such bonds may pledge or
assign the revenues to be received or proceeds of any contract or
contracts pledged and may convey or mortgage the project or any
portion thereof. Such trust agreement or resolution providing for the
issuance of such bonds may contain such provisions for protecting
and enforcing the rights and remedies of the bondholders as may be
reasonable and proper and not in violation of law, including
particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company
incorporated under the laws of this state which may act as depositary
of the proceeds of bonds or of revenues or other moneys may furnish
such indemnifying bonds or pledge such securities as may be required
by the authority. Any such trust agreement may set forth the rights
and remedies of the bondholders and of the trustee or trustees, and
may restrict the individual right of action by bondholders. In
addition to the foregoing, any such trust agreement or resolution may
contain such other provisions as the authority may deem reasonable
and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of such trust agreement or resolution
may be treated as a part of the cost of the operation of a project.
94146. (a) Bonds issued under the provisions of this chapter shall
not be deemed to constitute a debt or liability of the state or of
any political subdivision thereof or a pledge of the faith and credit
of the state or of any political subdivision other than the
authority, but shall be payable solely from the funds herein
provided. All bonds shall contain on the face thereof a statement to
the effect that neither the State of California nor the authority
shall be obligated to pay the same or the interest thereon except
from revenues of the project or the portion thereof for which they
are issued and that neither the faith and credit nor the taxing power
of the State of California or of any political subdivision thereof
is pledged to the payment of the principal of or the interest on the
bonds.
(b) The issuance of bonds under the provisions of this chapter
shall not directly or indirectly or contingently obligate the state
or any political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. No provision of this section shall prevent or be construed
to prevent the authority from pledging its full faith and credit or
the full faith and credit of a participating private college or
participating nonprofit entity to the payment of bonds or issue of
bonds authorized pursuant to this chapter.
94147. (a) The authority may fix, revise, charge, and collect
rates, rents, fees, and charges for the use of and for the services
furnished or to be furnished by each project, and may contract with
any person, partnership, association or corporation, or other body,
public or private, in respect thereof. These rates, rents, fees, and
charges shall be fixed and adjusted in respect of the aggregate of
rents, rates, fees, and charges from the project so as to provide
funds sufficient with other revenues or moneys, if any, to accomplish
all of the following:
(1) Pay the cost of maintaining, repairing, and operating the
project and each and every portion thereof, to the extent that the
payment of that cost has not otherwise been adequately provided for.
(2) Pay the principal of, and the interest on, outstanding bonds
of the authority issued in respect of that project as the same shall
become due and payable.
(3) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, bonds of the
authority.
(b) (1) The rates, rents, fees, and charges referenced in
subdivision (a) are not subject to supervision or regulation by any
department, commission, board, body, bureau, or agency of this state
other than the authority. A sufficient amount of the revenues derived
in respect of a project, except a part of those revenues that is
necessary to pay the cost of maintenance, repair, and operation and
to provide reserves for renewals, replacements, extensions,
enlargements, and improvements as may be provided for in the
resolution authorizing the issuance of any bonds of the authority or
in the trust agreement securing the same, shall be set aside at
regular intervals provided in the resolution or trust agreement in a
sinking or other similar fund.
(2) The fund established pursuant to paragraph (1) is pledged to,
and charged with, the payment of the principal of and the interest
on, the bonds as the same shall become due, and the redemption price
or the purchase price of bonds retired by call or purchase as therein
provided.
(3) The pledge required by paragraph (2) shall be valid and
binding from the time when the pledge is made. The rates, rents, fees
and charges and other revenues or other moneys so pledged and
thereafter received by the authority shall immediately be subject to
the lien of the pledge without any physical delivery thereof or
further act, and the lien of that pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract,
or otherwise against the authority, irrespective of whether the
parties have notice thereof. Neither the resolution nor any trust
agreement by which a pledge is created need be filed or recorded
except in the records of the authority.
(4) The use and disposition of moneys to the credit of the sinking
or other similar fund shall be subject to the resolution authorizing
the issuance of those bonds or of that trust agreement. Except as
may otherwise be provided in that resolution or that trust agreement,
the sinking or other similar fund shall be a fund for all of those
bonds issued to finance projects at a participating college, or bonds
issued to finance a project of a participating nonprofit entity,
without distinction or priority of one over another.
(5) The authority, in the resolution or trust agreement, may
provide that the sinking or other similar fund shall be either of the
following:
(A) The fund for a particular project at a participating college
and for the bonds issued to finance a particular project and may,
additionally, permit and provide for the issuance of bonds having a
subordinate lien in respect of the security herein authorized to
other bonds of the authority and, in this case, the authority may
create separate sinking or other similar funds in respect of those
subordinate lien bonds.
(B) The fund for a particular project of a participating nonprofit
entity.
94148. Any holder of bonds issued under the provisions of this
chapter or any of the coupons appertaining thereto, and the trustee
or trustees under any trust agreement, except to the extent the
rights herein given may be restricted by any resolution authorizing
the issuance of, or any such trust agreement securing, such bonds,
may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of
the state or granted hereunder or under such resolution or trust
agreement, and may enforce and compel the performance of all duties
required by this chapter or by such resolution or trust agreement to
be performed by the authority or by any officer, employee or agent
thereof, including the fixing, charging, and collecting of the rates,
rents, fees, and charges herein authorized and required by the
provisions of such resolution or trust agreement to be fixed,
established, and collected.
94149. All moneys received pursuant to the authority of this
chapter, whether as proceeds from the sale of bonds or as revenues,
shall be deemed to be trust funds to be held and applied solely as
provided in this chapter. Until the funds are applied as provided in
this chapter, and notwithstanding any other provision of law, the
moneys may be invested in any obligations or securities authorized by
resolutions of the authority authorizing the issuance of the bonds.
Any officer with whom, or any bank or trust company with which, the
moneys are deposited shall act as trustee of the moneys and shall
hold and apply the moneys for the purposes hereof, subject to any
regulations adopted pursuant to this chapter and the resolution
authorizing the issuance of any bonds or the trust agreement securing
the bonds.
94150. (a) The authority may issue bonds of the authority for the
purpose of refunding any bonds or notes of the authority then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest date of
redemption or subsequent date of redemption, purchase or maturity of
the bonds, to be refunded and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion of a project.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase, retirement at maturity, or redemption prior to
maturity of any outstanding bonds either on their earliest redemption
date or dates, any subsequent redemption date or dates, upon their
purchase or maturity, or paid to a third person to assume the
authority's obligation to make the payments, and may, pending that
application, be placed in escrow to be applied to the purchase,
retirement at maturity, or redemption on the date or dates determined
by the authority.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the authority, payable or maturing at the time or
times as are appropriate to assure the prompt payment of the
principal, interest, and redemption premium, if any, of the
outstanding bonds to be refunded at maturity or redemption of the
bonds to be refunded either at their earliest redemption date or
dates or any subsequent redemption date or dates. The interest,
income and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be
refunded or to the payment of interest on the refunding bonds. After
the terms of the escrow have been fully satisfied and carried out,
any balance of the proceeds and interest, income and profits, if any,
earned or realized on the investments thereof may be returned to the
authority for use by the authority.
(d) The portion of the proceeds of any bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested in
obligations or securities authorized by resolution of the authority,
maturing not later than the time or times when the proceeds will be
needed for the purpose of paying all or any part of the cost. The
interest, income, and profits, if any, earned or realized on the
investment may be applied to the payment of all or any part of the
cost or may be used by the authority in any lawful manner.
(e) All of those refunding bonds are subject to this chapter in
the same manner and to the same extent as other bonds issued pursuant
to this chapter.
94151. (a) The authority is hereby authorized to loan funds to a
participating institution and to provide for the issuance of bonds
for the purpose of refinancing projects not originally funded
pursuant to this chapter, such refinancing to include the repayment
of costs, as defined in Section 94110, incurred for projects by the
participating institution and which have a completion date subsequent
to December 29, 1969.
(b) For purposes of this section, "completion date" shall mean, in
the case of construction or renovation of a project, the date on
which the notice of completion is filed, and, in the case of the
acquisition of a project, the date of such acquisition.
(c) All such bonds shall be subject to the provisions of this
chapter in the same manner and to the same extent as other bonds
issued pursuant to this chapter.
94152. Bonds and notes issued by the authority under the provisions
of this chapter are hereby made securities in which all banks,
bankers, savings banks, trust companies, savings and loan
associations, investment companies and other persons carrying on a
banking business, all insurance companies, insurance associations,
and other persons carrying on an insurance business, and all
administrators, executors, guardians, trustees and other fiduciaries,
and all other persons whatsoever who now are or may hereafter be
authorized to invest in bonds or other obligations of the state, may
properly and legally invest any funds, including capital belonging to
them or within their control; and said bonds, notes or other
securities or obligations are hereby made securities which may
properly and legally be deposited with and received by any state or
municipal officers or agency of the state for any purpose for which
the deposit of bonds or other obligations of the state is now or may
hereafter be authorized by law.
94154. The State of California pledges and agrees with the holders
of the bonds, notes, and other obligations issued pursuant to
authority contained in this chapter, and with those parties who may
enter into contracts with the authority pursuant to this chapter,
that the state will not limit, alter, or restrict the rights hereby
vested in the authority and the participating private colleges and
participating nonprofit entities to maintain, construct, reconstruct,
and operate any project as defined in this chapter or to establish
and collect the rents, fees, receipts, or other charges as may be
convenient or necessary to produce sufficient revenues to meet the
expenses of maintenance and operation thereof and to fulfill the
terms of any agreements made with the holders of bonds authorized by
this chapter, and with the parties who may enter into contracts with
the authority pursuant to this chapter, or in any way impair the
rights or remedies of the holders of those bonds or those parties
until the bonds, together with interest thereon, are fully paid and
discharged and the contracts are fully performed on the part of the
authority. The authority as a public body corporate and politic may
include the pledge herein made in its bonds and contracts.
94155. On or before March 31 in each year the authority shall make
an annual report of its activities for the preceding calendar year to
the Governor and the Legislature. Each such report shall set forth a
complete operating and financial statement covering the authority's
operations during the year. The authority shall cause an audit of its
books and accounts to be made at least once in each year by
certified public accountants. The authority shall also consult with
the California Postsecondary Education Commission and the Student Aid
Commission with respect to the need for additional financing of
student loan projects.
94156. The exercise of the powers granted by this chapter will be
in all respects for the benefit of the people of this state, for the
increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions, and as the
operation and maintenance of a project by the authority will
constitute the performance of an essential public function, neither
the authority nor its agent shall be required to pay any taxes or
assessments upon or in respect of a project or any property acquired
or used by the authority under the provisions of this chapter, or
upon the income therefrom, and any bonds issued under the provisions
of this chapter, their transfer and the income therefrom, shall at
all times be free from taxation of every kind by the state and by the
municipalities and other political subdivisions in the state.
