34350. An authority shall have the following powers:
(a) To issue bonds for any of its corporate purposes.
(b) To sell or otherwise dispose of any mortgage loans, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing mortgage loans, so that the
revenues and receipts to be derived with respect to the loans,
together with any insurance proceeds, reserve accounts, and earnings
thereon, shall be designed to produce revenues and receipts at least
sufficient to provide for the prompt payment at maturity of
principal, interest, and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any mortgage loans or loans made to lending
institutions pursuant to this chapter to the punctual payment of
bonds authorized under this chapter, and the interest and redemption
premiums, if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any mortgage loans, notes, loans made to lending institutions
pursuant to this chapter, or other property in favor of the holder or
holders of bonds issued therefor or of the trustee for such holder
or holders.
(e) To sell and convey any mortgage loans, or loans made to
lending institutions pursuant to this chapter, for such prices and at
such times as the authority may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted in this
chapter.
34350.2. A housing authority may not issue bonds pursuant to
Section 34312.4 unless it has received an allocation of qualified
mortgage bonds pursuant to Section 50193, and has complied with the
applicable provisions of Chapter 3.5 (commencing with Section 50171)
of Part 1 of Division 31.
34350.5. The exercise of any or all powers granted by this chapter
shall be authorized and the bonds shall be authorized to be issued
under this chapter for the purposes set forth in this chapter, by
resolution of the authority which shall set forth a finding and
declaration (1) of the public purpose therefor and (2) that such
resolution is being adopted pursuant to the powers granted by this
chapter. The finding and declaration shall be conclusive evidence of
the existence and sufficiency of the public purpose and powers.
34351. An authority may issue such types of bonds as it determines,
including bonds on which the principal and interest are payable:
(a) Exclusively from the income and revenues of the housing
project financed with the proceeds of the bonds, or with such
proceeds together with a grant from the Federal Government in aid of
the project.
(b) Exclusively from the income and revenues of certain designated
housing projects whether or not they were financed in whole or in
part with the proceeds of the bonds.
(c) From its revenues generally.
34352. (a) Any of the bonds may be additionally secured by a pledge
of any revenues or a mortgage of any housing project or other
property of the authority.
(b) Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in the property pledged and thereafter received
by the authority, a trustee, or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against such authority, 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.
34353. Neither the commissioners of an authority nor any person
executing the bonds are liable personally on the bonds or subject to
any personal liability or accountability by reason of their issuance.
The bonds and other obligations of an authority are not a debt of
the city, county, state, or any of its political subdivisions and
neither are they liable on the bonds, nor are the bonds or
obligations payable out of any funds or properties other than those
of the authority pledges for the payment thereof; and the bonds shall
so state on their face. The bonds do not constitute an indebtedness
within the meaning of any constitutional or statutory debt
limitation.
34354. By resolution, an authority may authorize the issuance of
its bonds which may be taxable or nontaxable. The resolution, its
trust indenture, or mortgage may provide for:
(a) The issuance of bonds in one or more series.
(b) The date the bonds shall bear.
(c) The date of maturity, not exceeding 45 years from their
respective dates.
(d) The interest rate, not exceeding 12 percent a year.
(e) The denomination of the bonds.
(f) The form of the bonds, either coupon or registered, as
permitted by law.
(g) The conversion or registration privileges which the bonds
shall carry.
(h) The rank or priority of the bonds.
(i) The manner of execution of the bonds.
(j) The medium of payment in which the bonds are payable.
(k) The place of payment.
( l) The terms of redemption, with or without premium.
34354.5. Notwithstanding Section 34354 or any other provision of
law, the rate of interest on any indebtedness or obligation of a
housing authority which is payable to the federal government or any
agency or instrumentality thereof or on any indebtedness or
obligation of a housing authority which is guaranteed by the federal
government or any instrumentality thereof may be at a rate higher
than the limitation established in Section 34354, or any other law,
if the rate is the rate established by the federal government or any
instrumentality thereof. Any such indebtedness or obligation shall be
in any form and denomination, have any maturity and be subject to
any conditions which may be prescribed by the federal government or
agency or instrumentality thereof.
34355. The bonds may be sold at public or private sale in such
manner and upon such terms as may be provided in the resolution
authorizing the bonds or by separate resolution.
34356. The bonds shall bear the manual or facsimile signatures of
such authority commissioner or officer as may be designated in the
resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of such commissioner or officer,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be commissioner or officer of the authority. The validity
of the bonds shall not be dependent on, nor affected by, the validity
or regularity of any proceedings relating to any mortgage loans or
housing projects for which the bonds are issued. The resolution
authorizing the bonds may provide that the bonds shall contain a
recital that they are issued pursuant to this chapter and the recital
shall be conclusive evidence of their validity and of the regularity
of their issuance. Bonds issued pursuant to this chapter are fully
negotiable.
34357. In any proceedings involving the validity or enforceability
of any bond or its security, any such bond reciting in substance that
it has been issued by the authority to aid in financing dwelling
accommodations for persons of low income, is conclusively deemed to
have been issued for such purpose pursuant to this chapter.
34358. In connection with the issuance of bonds or the incurring of
obligations in acquiring, developing, or leasing real property and
in order to secure the payment of the bonds or obligations, an
authority has the powers conferred by Sections 34359 to 34365,
inclusive.
34359. An authority may:
(a) Pledge all or any part of its gross or net rents, fees, or
revenues to which its right then exists or may thereafter come into
existence.
(b) Mortgage all or any part of its real or personal property then
owned or thereafter acquired.
(c) Borrow money from private sources, the state, county, or
federal government, and issue its notes and encumber its assets as
security by means of deeds of trust. The obligation of the authority
is limited to the security on the deed of trust.
34360. An authority may:
(a) Covenant against pledging all or part of its rents, fees, and
revenues, against mortgaging all or part of its real or personal
property, to which its right or title then exists or may thereafter
come into existence, or against permitting or suffering any lien on
such revenues or property.
(b) Covenant with respect to limitations on its right to sell,
lease, or otherwise dispose of all or part of any housing project.
(c) Covenant as to what other or additional debts or obligations
may be incurred by it.
(d) Covenant as to the bonds to be issued, as to their issuance in
escrow or otherwise, and as to the use and disposition of the bond
proceeds.
(e) Provide for the replacement of lost, destroyed, or mutilated
bonds.
(f) Covenant against extending the time for the payment of its
bonds or interest on them.
(g) Redeem the bonds, covenant for their redemption, and provide
the redemption terms and conditions.
34361. An authority may:
(a) Covenant as to the rents and fees to be charged in the
operation of a housing project, the amount to be raised each year or
other period of time by rents, fees, and other revenues, and as to
their use and disposition.
(b) Create or authorize the creation of special funds for money
held for construction or operating costs, debt service, reserves, or
other purposes, and covenant as to the use and disposition of the
money held in the funds.
34362. An authority may prescribe procedure by which the terms of
any contract with bondholders may be amended or abrogated, the amount
of bonds whose holders are required to consent, and the manner in
which consent may be given. The provisions of this chapter and any
resolution and any mortgage, pledge, assignment, security interest,
insurance agreement, or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in
effect until the principal of, the interest on, and the redemption
premiums, if any, on the bonds so issued have been fully paid or
provision made therefor, and the duties of the authority and its
officers under this chapter and any resolution and any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust shall be enforceable as provided therein by any
bondholder by mandamus, foreclosure of any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust, or other appropriate suit, action, or proceeding in any court
of competent jurisdiction; provided, the resolution or any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust under which the bonds are issued may provide that
all such remedies and rights to enforcement may be vested in a
trustee (with full power of appointment) for the benefit of all the
bondholders, and that the trustee shall be subject to the control of
such number of holders or owners of any outstanding bonds as
specified in the resolution.
34363. An authority may:
(a) Covenant as to the use of any or all of its real or personal
property.
(b) Covenant as to the maintenance of its real and personal
property, its replacement, the insurance to be carried on it, and the
use and disposition of insurance money.
(c) Covenant as to the rights, liabilities, powers, and duties
arising upon the breach by it of any covenant, condition, or
obligation.
(d) Covenant and prescribe as to events of default and terms and
conditions upon which any or all of its bonds or obligations become
or may be declared due before maturity, and as to the terms and
conditions upon which such declaration and its consequences may be
waived.
34364. An authority may:
(a) Appoint one or more banks or trust companies within or outside
the state having the necessary trust powers as trustee, custodian,
or trustee and custodian for the benefit of the bondholders, paying
agent, or bond registrar.
(b) Vest in a trustee or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants
securing or relating to the bonds.
(c) Vest in a trustee the right, in the event of a default by the
authority, to take possession and use, operate, and manage all or
part of any housing project, and to collect and dispose of the rents
and revenues arising from it pursuant to the agreement of the
authority with the trustee.
(d) Provide for the powers and duties of a trustee and limit his
liabilities.
(e) Provide the terms and conditions upon which the trustee or the
holders of bonds or any proportion of them may enforce any covenant
or rights securing or relating to the bonds.
34365. An authority may exercise all or any part or combination of
the powers granted in Sections 34359 to 34364, inclusive, and make
covenants other than the covenants expressly authorized in such
sections, of like or different character. An authority may make
covenants and do any and all acts and things necessary, convenient,
or desirable to secure its bonds, or which will tend to make them
more marketable notwithstanding that such covenants, acts, or things
are not enumerated in this chapter.
34366. Any authority may submit to the Attorney General any bonds
to be issued pursuant to this chapter after all proceedings for their
issuance have been taken. Upon such submission the Attorney General
shall examine into and pass upon the validity of the bonds and the
regularity of all proceedings in connection with them. If the
proceedings conform to this chapter and are otherwise regular in form
and if the bonds when delivered and paid for will constitute binding
and legal obligations of the authority enforceable according to
their terms, the Attorney General shall certify in substance upon the
back of each bond that it is issued in accordance with the
Constitution and state laws.
34366.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any bonds issued pursuant to
Article 5 (commencing with Section 34350) and the legality and
validity of all proceedings previously taken and (as provided in the
bond resolution) proposed to be taken for the authorization,
issuance, sale, and delivery of the bonds and for the payment of the
principal thereof and interest thereon.
34367. Subject only to any contractual restrictions binding upon
him, an obligee may:
(a) By proper proceeding compel the authority and its
commissioners, officers, agents, or employees to perform each and
every provision contained in any contract of the authority with or
for his benefit, and require the carrying out of any or all the
covenants and agreements of the authority and the fulfillment of all
duties imposed upon it by this chapter.
(b) By proper proceeding enjoin any acts or things which may be
unlawful, or the violation of any of his rights by the authority.
34368. By its resolution, trust indenture, mortgage, lease, or
other contract an authority may confer upon any obligee holding or
representing a specified amount in bonds, or holding a lease, the
following rights to be exercised upon the happening of an event of
default defined in the resolution or instrument, by proceeding in any
court of competent jurisdiction:
(a) To cause possession of all or part of any housing project to
be surrendered to him.
(b) To obtain the appointment of a receiver of all or part of any
housing project and of the rents and profits from it. If the receiver
is appointed, he may enter and take possession of the housing
project or the part of it, operate and maintain it, collect and
receive all fees, rents, revenues, or other charges thereafter
arising from it, and keep such money in a separate account and apply
it pursuant to the obligations of the authority as the court directs.
(c) To require the authority and its commissioners to account as
if it and they were the trustees of an express trust.
34369. Notwithstanding any restrictions on investments contained in
any laws of this state, the state, all public officers, municipal
corporations, political subdivisions, and public bodies, all banks,
bankers, trust companies, savings banks and institutions, building
and loan associations, 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 executors, administrators,
guardians, conservators, trustees, and other fiduciaries may legally
invest any sinking funds, moneys, or other funds belonging to them
or within their control in any bonds or other obligations issued by
an authority pursuant to this chapter, or issued by any public
housing authority or agency in the United States, when such bonds or
other obligations are secured by a pledge of annual contributions to
be paid by the United States government or any agency thereof, and
such bonds and other obligations shall be authorized security for all
public deposits.
34370. It is the purpose of Section 34369 to authorize any person,
political subdivision, body, or officer, public or private, to use
any funds owned or controlled by him or it, including sinking,
insurance, investment, retirement, compensation, pension, and trust
funds, and funds held on deposit, for the purchase of any such bonds
or other obligations.
Nothing in Section 34369 relieves any person from any duty of
exercising reasonable care in selecting securities.
34371. Insofar as the provisions of Sections 34369 and 34370 are
inconsistent with the provisions of any other law, the provisions of
the sections are controlling.
34372. An authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority
then outstanding, including the payment of any redemption premiums
thereof and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase, or maturity of such bonds,
and, if deemed advisable by the authority, for the additional purpose
of paying all or any part of the cost of additional construction.
The proceeds of bonds issued pursuant to this section may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of outstanding bonds, either at their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and, pending such application,
that portion of the proceeds allocated for such purpose may be placed
in escrow, to be applied to such purchase or retirement at maturity
or redemption on such date, as may be determined by the authority.
Pending use for purchase, retirement at maturity, or redemption of
outstanding bonds, any proceeds held in such an escrow may be
invested and reinvested as provided in the resolution authorizing the
issuance of the refunding bonds. Any interest or other increment
earned or realized on any such investment may also be applied to the
payment of the outstanding bonds to be refunded. After the terms of
the escrow have been fully satisfied and carried out, any balance of
such proceeds and any interest or increment earned or realized from
the investment thereof may be returned to the authority to be used by
it for any lawful purpose under this chapter. That portion of the
proceeds of any bonds issued pursuant to this section which is
designated for the purpose of paying all or any part of the cost of
additional construction may be invested and reinvested in obligations
of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligations of,
or guaranteed by, the United States of America, maturing not later
than the time or times which such proceeds will be needed for the
purpose of paying all or any part of such costs.
All bonds issued pursuant to this section 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.
34373. An authority which has issued bonds pursuant to this chapter
or any trustee or custodian on behalf of the authority may invest
any funds held by it as provided in the resolution authorizing the
issuance of the bonds.
34374. Investments under Section 34373 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the state and qualified to
provide insurance on mortgages purchased by the Federal Home Loan
Mortgage Corporation or the Federal National Mortgage Association.
The authority provided in this section and Section 34373 is
additional and alternative to any other authorization for investment
contained in this chapter, including Section 34372, or in other
provisions of law.
34375. All moneys received pursuant to the provisions of this
chapter, whether revenues or proceeds from the sale of bonds or
proceeds of insurance or guarantee claims, shall be deemed to be
trust funds to be held and applied solely for the purpose of this
chapter. Any bank or trust company in which such moneys are deposited
shall act as trustee of such moneys and shall hold and apply the
same for the purposes specified in this chapter, subject to the terms
of the resolution authorizing the bonds.
34350. An authority shall have the following powers:
(a) To issue bonds for any of its corporate purposes.
(b) To sell or otherwise dispose of any mortgage loans, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing mortgage loans, so that the
revenues and receipts to be derived with respect to the loans,
together with any insurance proceeds, reserve accounts, and earnings
thereon, shall be designed to produce revenues and receipts at least
sufficient to provide for the prompt payment at maturity of
principal, interest, and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any mortgage loans or loans made to lending
institutions pursuant to this chapter to the punctual payment of
bonds authorized under this chapter, and the interest and redemption
premiums, if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any mortgage loans, notes, loans made to lending institutions
pursuant to this chapter, or other property in favor of the holder or
holders of bonds issued therefor or of the trustee for such holder
or holders.
(e) To sell and convey any mortgage loans, or loans made to
lending institutions pursuant to this chapter, for such prices and at
such times as the authority may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted in this
chapter.
34350.2. A housing authority may not issue bonds pursuant to
Section 34312.4 unless it has received an allocation of qualified
mortgage bonds pursuant to Section 50193, and has complied with the
applicable provisions of Chapter 3.5 (commencing with Section 50171)
of Part 1 of Division 31.
34350.5. The exercise of any or all powers granted by this chapter
shall be authorized and the bonds shall be authorized to be issued
under this chapter for the purposes set forth in this chapter, by
resolution of the authority which shall set forth a finding and
declaration (1) of the public purpose therefor and (2) that such
resolution is being adopted pursuant to the powers granted by this
chapter. The finding and declaration shall be conclusive evidence of
the existence and sufficiency of the public purpose and powers.
34351. An authority may issue such types of bonds as it determines,
including bonds on which the principal and interest are payable:
(a) Exclusively from the income and revenues of the housing
project financed with the proceeds of the bonds, or with such
proceeds together with a grant from the Federal Government in aid of
the project.
(b) Exclusively from the income and revenues of certain designated
housing projects whether or not they were financed in whole or in
part with the proceeds of the bonds.
(c) From its revenues generally.
34352. (a) Any of the bonds may be additionally secured by a pledge
of any revenues or a mortgage of any housing project or other
property of the authority.
(b) Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in the property pledged and thereafter received
by the authority, a trustee, or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against such authority, 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.
34353. Neither the commissioners of an authority nor any person
executing the bonds are liable personally on the bonds or subject to
any personal liability or accountability by reason of their issuance.
The bonds and other obligations of an authority are not a debt of
the city, county, state, or any of its political subdivisions and
neither are they liable on the bonds, nor are the bonds or
obligations payable out of any funds or properties other than those
of the authority pledges for the payment thereof; and the bonds shall
so state on their face. The bonds do not constitute an indebtedness
within the meaning of any constitutional or statutory debt
limitation.
34354. By resolution, an authority may authorize the issuance of
its bonds which may be taxable or nontaxable. The resolution, its
trust indenture, or mortgage may provide for:
(a) The issuance of bonds in one or more series.
(b) The date the bonds shall bear.
(c) The date of maturity, not exceeding 45 years from their
respective dates.
(d) The interest rate, not exceeding 12 percent a year.
(e) The denomination of the bonds.
(f) The form of the bonds, either coupon or registered, as
permitted by law.
(g) The conversion or registration privileges which the bonds
shall carry.
(h) The rank or priority of the bonds.
(i) The manner of execution of the bonds.
(j) The medium of payment in which the bonds are payable.
(k) The place of payment.
( l) The terms of redemption, with or without premium.
34354.5. Notwithstanding Section 34354 or any other provision of
law, the rate of interest on any indebtedness or obligation of a
housing authority which is payable to the federal government or any
agency or instrumentality thereof or on any indebtedness or
obligation of a housing authority which is guaranteed by the federal
government or any instrumentality thereof may be at a rate higher
than the limitation established in Section 34354, or any other law,
if the rate is the rate established by the federal government or any
instrumentality thereof. Any such indebtedness or obligation shall be
in any form and denomination, have any maturity and be subject to
any conditions which may be prescribed by the federal government or
agency or instrumentality thereof.
34355. The bonds may be sold at public or private sale in such
manner and upon such terms as may be provided in the resolution
authorizing the bonds or by separate resolution.
34356. The bonds shall bear the manual or facsimile signatures of
such authority commissioner or officer as may be designated in the
resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of such commissioner or officer,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be commissioner or officer of the authority. The validity
of the bonds shall not be dependent on, nor affected by, the validity
or regularity of any proceedings relating to any mortgage loans or
housing projects for which the bonds are issued. The resolution
authorizing the bonds may provide that the bonds shall contain a
recital that they are issued pursuant to this chapter and the recital
shall be conclusive evidence of their validity and of the regularity
of their issuance. Bonds issued pursuant to this chapter are fully
negotiable.
34357. In any proceedings involving the validity or enforceability
of any bond or its security, any such bond reciting in substance that
it has been issued by the authority to aid in financing dwelling
accommodations for persons of low income, is conclusively deemed to
have been issued for such purpose pursuant to this chapter.
34358. In connection with the issuance of bonds or the incurring of
obligations in acquiring, developing, or leasing real property and
in order to secure the payment of the bonds or obligations, an
authority has the powers conferred by Sections 34359 to 34365,
inclusive.
34359. An authority may:
(a) Pledge all or any part of its gross or net rents, fees, or
revenues to which its right then exists or may thereafter come into
existence.
(b) Mortgage all or any part of its real or personal property then
owned or thereafter acquired.
(c) Borrow money from private sources, the state, county, or
federal government, and issue its notes and encumber its assets as
security by means of deeds of trust. The obligation of the authority
is limited to the security on the deed of trust.
34360. An authority may:
(a) Covenant against pledging all or part of its rents, fees, and
revenues, against mortgaging all or part of its real or personal
property, to which its right or title then exists or may thereafter
come into existence, or against permitting or suffering any lien on
such revenues or property.
(b) Covenant with respect to limitations on its right to sell,
lease, or otherwise dispose of all or part of any housing project.
(c) Covenant as to what other or additional debts or obligations
may be incurred by it.
(d) Covenant as to the bonds to be issued, as to their issuance in
escrow or otherwise, and as to the use and disposition of the bond
proceeds.
(e) Provide for the replacement of lost, destroyed, or mutilated
bonds.
(f) Covenant against extending the time for the payment of its
bonds or interest on them.
(g) Redeem the bonds, covenant for their redemption, and provide
the redemption terms and conditions.
34361. An authority may:
(a) Covenant as to the rents and fees to be charged in the
operation of a housing project, the amount to be raised each year or
other period of time by rents, fees, and other revenues, and as to
their use and disposition.
(b) Create or authorize the creation of special funds for money
held for construction or operating costs, debt service, reserves, or
other purposes, and covenant as to the use and disposition of the
money held in the funds.
34362. An authority may prescribe procedure by which the terms of
any contract with bondholders may be amended or abrogated, the amount
of bonds whose holders are required to consent, and the manner in
which consent may be given. The provisions of this chapter and any
resolution and any mortgage, pledge, assignment, security interest,
insurance agreement, or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in
effect until the principal of, the interest on, and the redemption
premiums, if any, on the bonds so issued have been fully paid or
provision made therefor, and the duties of the authority and its
officers under this chapter and any resolution and any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust shall be enforceable as provided therein by any
bondholder by mandamus, foreclosure of any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust, or other appropriate suit, action, or proceeding in any court
of competent jurisdiction; provided, the resolution or any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust under which the bonds are issued may provide that
all such remedies and rights to enforcement may be vested in a
trustee (with full power of appointment) for the benefit of all the
bondholders, and that the trustee shall be subject to the control of
such number of holders or owners of any outstanding bonds as
specified in the resolution.
34363. An authority may:
(a) Covenant as to the use of any or all of its real or personal
property.
(b) Covenant as to the maintenance of its real and personal
property, its replacement, the insurance to be carried on it, and the
use and disposition of insurance money.
(c) Covenant as to the rights, liabilities, powers, and duties
arising upon the breach by it of any covenant, condition, or
obligation.
(d) Covenant and prescribe as to events of default and terms and
conditions upon which any or all of its bonds or obligations become
or may be declared due before maturity, and as to the terms and
conditions upon which such declaration and its consequences may be
waived.
34364. An authority may:
(a) Appoint one or more banks or trust companies within or outside
the state having the necessary trust powers as trustee, custodian,
or trustee and custodian for the benefit of the bondholders, paying
agent, or bond registrar.
(b) Vest in a trustee or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants
securing or relating to the bonds.
(c) Vest in a trustee the right, in the event of a default by the
authority, to take possession and use, operate, and manage all or
part of any housing project, and to collect and dispose of the rents
and revenues arising from it pursuant to the agreement of the
authority with the trustee.
(d) Provide for the powers and duties of a trustee and limit his
liabilities.
(e) Provide the terms and conditions upon which the trustee or the
holders of bonds or any proportion of them may enforce any covenant
or rights securing or relating to the bonds.
34365. An authority may exercise all or any part or combination of
the powers granted in Sections 34359 to 34364, inclusive, and make
covenants other than the covenants expressly authorized in such
sections, of like or different character. An authority may make
covenants and do any and all acts and things necessary, convenient,
or desirable to secure its bonds, or which will tend to make them
more marketable notwithstanding that such covenants, acts, or things
are not enumerated in this chapter.
34366. Any authority may submit to the Attorney General any bonds
to be issued pursuant to this chapter after all proceedings for their
issuance have been taken. Upon such submission the Attorney General
shall examine into and pass upon the validity of the bonds and the
regularity of all proceedings in connection with them. If the
proceedings conform to this chapter and are otherwise regular in form
and if the bonds when delivered and paid for will constitute binding
and legal obligations of the authority enforceable according to
their terms, the Attorney General shall certify in substance upon the
back of each bond that it is issued in accordance with the
Constitution and state laws.
34366.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any bonds issued pursuant to
Article 5 (commencing with Section 34350) and the legality and
validity of all proceedings previously taken and (as provided in the
bond resolution) proposed to be taken for the authorization,
issuance, sale, and delivery of the bonds and for the payment of the
principal thereof and interest thereon.
34367. Subject only to any contractual restrictions binding upon
him, an obligee may:
(a) By proper proceeding compel the authority and its
commissioners, officers, agents, or employees to perform each and
every provision contained in any contract of the authority with or
for his benefit, and require the carrying out of any or all the
covenants and agreements of the authority and the fulfillment of all
duties imposed upon it by this chapter.
(b) By proper proceeding enjoin any acts or things which may be
unlawful, or the violation of any of his rights by the authority.
34368. By its resolution, trust indenture, mortgage, lease, or
other contract an authority may confer upon any obligee holding or
representing a specified amount in bonds, or holding a lease, the
following rights to be exercised upon the happening of an event of
default defined in the resolution or instrument, by proceeding in any
court of competent jurisdiction:
(a) To cause possession of all or part of any housing project to
be surrendered to him.
(b) To obtain the appointment of a receiver of all or part of any
housing project and of the rents and profits from it. If the receiver
is appointed, he may enter and take possession of the housing
project or the part of it, operate and maintain it, collect and
receive all fees, rents, revenues, or other charges thereafter
arising from it, and keep such money in a separate account and apply
it pursuant to the obligations of the authority as the court directs.
(c) To require the authority and its commissioners to account as
if it and they were the trustees of an express trust.
34369. Notwithstanding any restrictions on investments contained in
any laws of this state, the state, all public officers, municipal
corporations, political subdivisions, and public bodies, all banks,
bankers, trust companies, savings banks and institutions, building
and loan associations, 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 executors, administrators,
guardians, conservators, trustees, and other fiduciaries may legally
invest any sinking funds, moneys, or other funds belonging to them
or within their control in any bonds or other obligations issued by
an authority pursuant to this chapter, or issued by any public
housing authority or agency in the United States, when such bonds or
other obligations are secured by a pledge of annual contributions to
be paid by the United States government or any agency thereof, and
such bonds and other obligations shall be authorized security for all
public deposits.
34370. It is the purpose of Section 34369 to authorize any person,
political subdivision, body, or officer, public or private, to use
any funds owned or controlled by him or it, including sinking,
insurance, investment, retirement, compensation, pension, and trust
funds, and funds held on deposit, for the purchase of any such bonds
or other obligations.
Nothing in Section 34369 relieves any person from any duty of
exercising reasonable care in selecting securities.
34371. Insofar as the provisions of Sections 34369 and 34370 are
inconsistent with the provisions of any other law, the provisions of
the sections are controlling.
34372. An authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority
then outstanding, including the payment of any redemption premiums
thereof and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase, or maturity of such bonds,
and, if deemed advisable by the authority, for the additional purpose
of paying all or any part of the cost of additional construction.
The proceeds of bonds issued pursuant to this section may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of outstanding bonds, either at their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and, pending such application,
that portion of the proceeds allocated for such purpose may be placed
in escrow, to be applied to such purchase or retirement at maturity
or redemption on such date, as may be determined by the authority.
Pending use for purchase, retirement at maturity, or redemption of
outstanding bonds, any proceeds held in such an escrow may be
invested and reinvested as provided in the resolution authorizing the
issuance of the refunding bonds. Any interest or other increment
earned or realized on any such investment may also be applied to the
payment of the outstanding bonds to be refunded. After the terms of
the escrow have been fully satisfied and carried out, any balance of
such proceeds and any interest or increment earned or realized from
the investment thereof may be returned to the authority to be used by
it for any lawful purpose under this chapter. That portion of the
proceeds of any bonds issued pursuant to this section which is
designated for the purpose of paying all or any part of the cost of
additional construction may be invested and reinvested in obligations
of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligations of,
or guaranteed by, the United States of America, maturing not later
than the time or times which such proceeds will be needed for the
purpose of paying all or any part of such costs.
All bonds issued pursuant to this section 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.
34373. An authority which has issued bonds pursuant to this chapter
or any trustee or custodian on behalf of the authority may invest
any funds held by it as provided in the resolution authorizing the
issuance of the bonds.
34374. Investments under Section 34373 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the state and qualified to
provide insurance on mortgages purchased by the Federal Home Loan
Mortgage Corporation or the Federal National Mortgage Association.
The authority provided in this section and Section 34373 is
additional and alternative to any other authorization for investment
contained in this chapter, including Section 34372, or in other
provisions of law.
34375. All moneys received pursuant to the provisions of this
chapter, whether revenues or proceeds from the sale of bonds or
proceeds of insurance or guarantee claims, shall be deemed to be
trust funds to be held and applied solely for the purpose of this
chapter. Any bank or trust company in which such moneys are deposited
shall act as trustee of such moneys and shall hold and apply the
same for the purposes specified in this chapter, subject to the terms
of the resolution authorizing the bonds.
34350. An authority shall have the following powers:
(a) To issue bonds for any of its corporate purposes.
(b) To sell or otherwise dispose of any mortgage loans, in whole
or in part, or to loan sufficient funds to any person to defray, in
whole or in part, the costs of purchasing mortgage loans, so that the
revenues and receipts to be derived with respect to the loans,
together with any insurance proceeds, reserve accounts, and earnings
thereon, shall be designed to produce revenues and receipts at least
sufficient to provide for the prompt payment at maturity of
principal, interest, and redemption premiums, if any, upon all bonds
issued to finance such costs.
(c) To pledge any revenues and receipts to be received from or
with respect to any mortgage loans or loans made to lending
institutions pursuant to this chapter to the punctual payment of
bonds authorized under this chapter, and the interest and redemption
premiums, if any, thereon.
(d) To mortgage, pledge, assign, or grant security interests in
any mortgage loans, notes, loans made to lending institutions
pursuant to this chapter, or other property in favor of the holder or
holders of bonds issued therefor or of the trustee for such holder
or holders.
(e) To sell and convey any mortgage loans, or loans made to
lending institutions pursuant to this chapter, for such prices and at
such times as the authority may determine.
(f) To issue its bonds to refund previously issued bonds in whole
or in part at any time.
(g) To make and execute contracts and other instruments necessary
or convenient to the exercise of any of the powers granted in this
chapter.
34350.2. A housing authority may not issue bonds pursuant to
Section 34312.4 unless it has received an allocation of qualified
mortgage bonds pursuant to Section 50193, and has complied with the
applicable provisions of Chapter 3.5 (commencing with Section 50171)
of Part 1 of Division 31.
34350.5. The exercise of any or all powers granted by this chapter
shall be authorized and the bonds shall be authorized to be issued
under this chapter for the purposes set forth in this chapter, by
resolution of the authority which shall set forth a finding and
declaration (1) of the public purpose therefor and (2) that such
resolution is being adopted pursuant to the powers granted by this
chapter. The finding and declaration shall be conclusive evidence of
the existence and sufficiency of the public purpose and powers.
34351. An authority may issue such types of bonds as it determines,
including bonds on which the principal and interest are payable:
(a) Exclusively from the income and revenues of the housing
project financed with the proceeds of the bonds, or with such
proceeds together with a grant from the Federal Government in aid of
the project.
(b) Exclusively from the income and revenues of certain designated
housing projects whether or not they were financed in whole or in
part with the proceeds of the bonds.
(c) From its revenues generally.
34352. (a) Any of the bonds may be additionally secured by a pledge
of any revenues or a mortgage of any housing project or other
property of the authority.
(b) Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or
property or interests in the property pledged and thereafter received
by the authority, a trustee, or custodian shall immediately be
subject to the lien of such pledge without any physical delivery
thereof or further act, and the lien of any such pledge shall be
valid and binding as against all parties having claims of any kind in
tort, contract, or otherwise against such authority, 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.
34353. Neither the commissioners of an authority nor any person
executing the bonds are liable personally on the bonds or subject to
any personal liability or accountability by reason of their issuance.
The bonds and other obligations of an authority are not a debt of
the city, county, state, or any of its political subdivisions and
neither are they liable on the bonds, nor are the bonds or
obligations payable out of any funds or properties other than those
of the authority pledges for the payment thereof; and the bonds shall
so state on their face. The bonds do not constitute an indebtedness
within the meaning of any constitutional or statutory debt
limitation.
34354. By resolution, an authority may authorize the issuance of
its bonds which may be taxable or nontaxable. The resolution, its
trust indenture, or mortgage may provide for:
(a) The issuance of bonds in one or more series.
(b) The date the bonds shall bear.
(c) The date of maturity, not exceeding 45 years from their
respective dates.
(d) The interest rate, not exceeding 12 percent a year.
(e) The denomination of the bonds.
(f) The form of the bonds, either coupon or registered, as
permitted by law.
(g) The conversion or registration privileges which the bonds
shall carry.
(h) The rank or priority of the bonds.
(i) The manner of execution of the bonds.
(j) The medium of payment in which the bonds are payable.
(k) The place of payment.
( l) The terms of redemption, with or without premium.
34354.5. Notwithstanding Section 34354 or any other provision of
law, the rate of interest on any indebtedness or obligation of a
housing authority which is payable to the federal government or any
agency or instrumentality thereof or on any indebtedness or
obligation of a housing authority which is guaranteed by the federal
government or any instrumentality thereof may be at a rate higher
than the limitation established in Section 34354, or any other law,
if the rate is the rate established by the federal government or any
instrumentality thereof. Any such indebtedness or obligation shall be
in any form and denomination, have any maturity and be subject to
any conditions which may be prescribed by the federal government or
agency or instrumentality thereof.
34355. The bonds may be sold at public or private sale in such
manner and upon such terms as may be provided in the resolution
authorizing the bonds or by separate resolution.
34356. The bonds shall bear the manual or facsimile signatures of
such authority commissioner or officer as may be designated in the
resolution authorizing the bonds and such signatures shall be the
valid and binding signatures of such commissioner or officer,
notwithstanding that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear thereon have
ceased to be commissioner or officer of the authority. The validity
of the bonds shall not be dependent on, nor affected by, the validity
or regularity of any proceedings relating to any mortgage loans or
housing projects for which the bonds are issued. The resolution
authorizing the bonds may provide that the bonds shall contain a
recital that they are issued pursuant to this chapter and the recital
shall be conclusive evidence of their validity and of the regularity
of their issuance. Bonds issued pursuant to this chapter are fully
negotiable.
34357. In any proceedings involving the validity or enforceability
of any bond or its security, any such bond reciting in substance that
it has been issued by the authority to aid in financing dwelling
accommodations for persons of low income, is conclusively deemed to
have been issued for such purpose pursuant to this chapter.
34358. In connection with the issuance of bonds or the incurring of
obligations in acquiring, developing, or leasing real property and
in order to secure the payment of the bonds or obligations, an
authority has the powers conferred by Sections 34359 to 34365,
inclusive.
34359. An authority may:
(a) Pledge all or any part of its gross or net rents, fees, or
revenues to which its right then exists or may thereafter come into
existence.
(b) Mortgage all or any part of its real or personal property then
owned or thereafter acquired.
(c) Borrow money from private sources, the state, county, or
federal government, and issue its notes and encumber its assets as
security by means of deeds of trust. The obligation of the authority
is limited to the security on the deed of trust.
34360. An authority may:
(a) Covenant against pledging all or part of its rents, fees, and
revenues, against mortgaging all or part of its real or personal
property, to which its right or title then exists or may thereafter
come into existence, or against permitting or suffering any lien on
such revenues or property.
(b) Covenant with respect to limitations on its right to sell,
lease, or otherwise dispose of all or part of any housing project.
(c) Covenant as to what other or additional debts or obligations
may be incurred by it.
(d) Covenant as to the bonds to be issued, as to their issuance in
escrow or otherwise, and as to the use and disposition of the bond
proceeds.
(e) Provide for the replacement of lost, destroyed, or mutilated
bonds.
(f) Covenant against extending the time for the payment of its
bonds or interest on them.
(g) Redeem the bonds, covenant for their redemption, and provide
the redemption terms and conditions.
34361. An authority may:
(a) Covenant as to the rents and fees to be charged in the
operation of a housing project, the amount to be raised each year or
other period of time by rents, fees, and other revenues, and as to
their use and disposition.
(b) Create or authorize the creation of special funds for money
held for construction or operating costs, debt service, reserves, or
other purposes, and covenant as to the use and disposition of the
money held in the funds.
34362. An authority may prescribe procedure by which the terms of
any contract with bondholders may be amended or abrogated, the amount
of bonds whose holders are required to consent, and the manner in
which consent may be given. The provisions of this chapter and any
resolution and any mortgage, pledge, assignment, security interest,
insurance agreement, or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in
effect until the principal of, the interest on, and the redemption
premiums, if any, on the bonds so issued have been fully paid or
provision made therefor, and the duties of the authority and its
officers under this chapter and any resolution and any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust shall be enforceable as provided therein by any
bondholder by mandamus, foreclosure of any such mortgage, pledge,
assignment, security interest, insurance agreement, or indenture of
trust, or other appropriate suit, action, or proceeding in any court
of competent jurisdiction; provided, the resolution or any mortgage,
pledge, assignment, security interest, insurance agreement, or
indenture of trust under which the bonds are issued may provide that
all such remedies and rights to enforcement may be vested in a
trustee (with full power of appointment) for the benefit of all the
bondholders, and that the trustee shall be subject to the control of
such number of holders or owners of any outstanding bonds as
specified in the resolution.
34363. An authority may:
(a) Covenant as to the use of any or all of its real or personal
property.
(b) Covenant as to the maintenance of its real and personal
property, its replacement, the insurance to be carried on it, and the
use and disposition of insurance money.
(c) Covenant as to the rights, liabilities, powers, and duties
arising upon the breach by it of any covenant, condition, or
obligation.
(d) Covenant and prescribe as to events of default and terms and
conditions upon which any or all of its bonds or obligations become
or may be declared due before maturity, and as to the terms and
conditions upon which such declaration and its consequences may be
waived.
34364. An authority may:
(a) Appoint one or more banks or trust companies within or outside
the state having the necessary trust powers as trustee, custodian,
or trustee and custodian for the benefit of the bondholders, paying
agent, or bond registrar.
(b) Vest in a trustee or the holders of bonds or any proportion of
them the right to enforce the payment of the bonds or any covenants
securing or relating to the bonds.
(c) Vest in a trustee the right, in the event of a default by the
authority, to take possession and use, operate, and manage all or
part of any housing project, and to collect and dispose of the rents
and revenues arising from it pursuant to the agreement of the
authority with the trustee.
(d) Provide for the powers and duties of a trustee and limit his
liabilities.
(e) Provide the terms and conditions upon which the trustee or the
holders of bonds or any proportion of them may enforce any covenant
or rights securing or relating to the bonds.
34365. An authority may exercise all or any part or combination of
the powers granted in Sections 34359 to 34364, inclusive, and make
covenants other than the covenants expressly authorized in such
sections, of like or different character. An authority may make
covenants and do any and all acts and things necessary, convenient,
or desirable to secure its bonds, or which will tend to make them
more marketable notwithstanding that such covenants, acts, or things
are not enumerated in this chapter.
34366. Any authority may submit to the Attorney General any bonds
to be issued pursuant to this chapter after all proceedings for their
issuance have been taken. Upon such submission the Attorney General
shall examine into and pass upon the validity of the bonds and the
regularity of all proceedings in connection with them. If the
proceedings conform to this chapter and are otherwise regular in form
and if the bonds when delivered and paid for will constitute binding
and legal obligations of the authority enforceable according to
their terms, the Attorney General shall certify in substance upon the
back of each bond that it is issued in accordance with the
Constitution and state laws.
34366.5. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any bonds issued pursuant to
Article 5 (commencing with Section 34350) and the legality and
validity of all proceedings previously taken and (as provided in the
bond resolution) proposed to be taken for the authorization,
issuance, sale, and delivery of the bonds and for the payment of the
principal thereof and interest thereon.
34367. Subject only to any contractual restrictions binding upon
him, an obligee may:
(a) By proper proceeding compel the authority and its
commissioners, officers, agents, or employees to perform each and
every provision contained in any contract of the authority with or
for his benefit, and require the carrying out of any or all the
covenants and agreements of the authority and the fulfillment of all
duties imposed upon it by this chapter.
(b) By proper proceeding enjoin any acts or things which may be
unlawful, or the violation of any of his rights by the authority.
34368. By its resolution, trust indenture, mortgage, lease, or
other contract an authority may confer upon any obligee holding or
representing a specified amount in bonds, or holding a lease, the
following rights to be exercised upon the happening of an event of
default defined in the resolution or instrument, by proceeding in any
court of competent jurisdiction:
(a) To cause possession of all or part of any housing project to
be surrendered to him.
(b) To obtain the appointment of a receiver of all or part of any
housing project and of the rents and profits from it. If the receiver
is appointed, he may enter and take possession of the housing
project or the part of it, operate and maintain it, collect and
receive all fees, rents, revenues, or other charges thereafter
arising from it, and keep such money in a separate account and apply
it pursuant to the obligations of the authority as the court directs.
(c) To require the authority and its commissioners to account as
if it and they were the trustees of an express trust.
34369. Notwithstanding any restrictions on investments contained in
any laws of this state, the state, all public officers, municipal
corporations, political subdivisions, and public bodies, all banks,
bankers, trust companies, savings banks and institutions, building
and loan associations, 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 executors, administrators,
guardians, conservators, trustees, and other fiduciaries may legally
invest any sinking funds, moneys, or other funds belonging to them
or within their control in any bonds or other obligations issued by
an authority pursuant to this chapter, or issued by any public
housing authority or agency in the United States, when such bonds or
other obligations are secured by a pledge of annual contributions to
be paid by the United States government or any agency thereof, and
such bonds and other obligations shall be authorized security for all
public deposits.
34370. It is the purpose of Section 34369 to authorize any person,
political subdivision, body, or officer, public or private, to use
any funds owned or controlled by him or it, including sinking,
insurance, investment, retirement, compensation, pension, and trust
funds, and funds held on deposit, for the purchase of any such bonds
or other obligations.
Nothing in Section 34369 relieves any person from any duty of
exercising reasonable care in selecting securities.
34371. Insofar as the provisions of Sections 34369 and 34370 are
inconsistent with the provisions of any other law, the provisions of
the sections are controlling.
34372. An authority may provide for the issuance of bonds of the
authority for the purpose of refunding any bonds of the authority
then outstanding, including the payment of any redemption premiums
thereof and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase, or maturity of such bonds,
and, if deemed advisable by the authority, for the additional purpose
of paying all or any part of the cost of additional construction.
The proceeds of bonds issued pursuant to this section may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of outstanding bonds, either at their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and, pending such application,
that portion of the proceeds allocated for such purpose may be placed
in escrow, to be applied to such purchase or retirement at maturity
or redemption on such date, as may be determined by the authority.
Pending use for purchase, retirement at maturity, or redemption of
outstanding bonds, any proceeds held in such an escrow may be
invested and reinvested as provided in the resolution authorizing the
issuance of the refunding bonds. Any interest or other increment
earned or realized on any such investment may also be applied to the
payment of the outstanding bonds to be refunded. After the terms of
the escrow have been fully satisfied and carried out, any balance of
such proceeds and any interest or increment earned or realized from
the investment thereof may be returned to the authority to be used by
it for any lawful purpose under this chapter. That portion of the
proceeds of any bonds issued pursuant to this section which is
designated for the purpose of paying all or any part of the cost of
additional construction may be invested and reinvested in obligations
of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligations of,
or guaranteed by, the United States of America, maturing not later
than the time or times which such proceeds will be needed for the
purpose of paying all or any part of such costs.
All bonds issued pursuant to this section 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.
34373. An authority which has issued bonds pursuant to this chapter
or any trustee or custodian on behalf of the authority may invest
any funds held by it as provided in the resolution authorizing the
issuance of the bonds.
34374. Investments under Section 34373 may include mortgage
obligations on single-family dwellings purchased from a state or
federally chartered savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the state and qualified to
provide insurance on mortgages purchased by the Federal Home Loan
Mortgage Corporation or the Federal National Mortgage Association.
The authority provided in this section and Section 34373 is
additional and alternative to any other authorization for investment
contained in this chapter, including Section 34372, or in other
provisions of law.
34375. All moneys received pursuant to the provisions of this
chapter, whether revenues or proceeds from the sale of bonds or
proceeds of insurance or guarantee claims, shall be deemed to be
trust funds to be held and applied solely for the purpose of this
chapter. Any bank or trust company in which such moneys are deposited
shall act as trustee of such moneys and shall hold and apply the
same for the purposes specified in this chapter, subject to the terms
of the resolution authorizing the bonds.
