44550. The authority may contract with any participating party for
the construction or acquisition of a project by the participating
party. All contracts for the construction or acquisition of a project
by a participating party shall provide that the participating party
shall be responsible for the architectural and engineering design and
for the construction and completion thereof subject to standards for
architectural and engineering design as may be established, and
subject to supervision as the authority deems necessary. The
authority may agree to pay the cost of a project constructed or
acquired by any participating party and to advance costs from time to
time in installments or otherwise as required by the contract for
the construction or acquisition thereof. Title to all of these
projects may be vested in the authority subject to the terms of any
lease thereof to the participating party or the rights of a
participating party under any contract for the purchase or
acquisition of the project including the payment of the purchase
price under installment sales contracts.
44551. The authority may, as lessor or lessee, enter into leases
and agreements with any participating party relating to the
acquisition, construction, and installation of any project, including
real property, buildings, equipment, and pollution control
facilities of any kind or character. The terms and conditions of such
leases may be as mutually agreed upon. Any such lease may provide
the means or methods by which title shall vest in a participating
party upon the termination of the lease and shall contain such other
terms and conditions as the authority may determine. The authority is
authorized to fix, revise, charge, and collect rates, rents, fees,
and charges for each project. Such rates, rents, fees, and charges
shall be fixed and adjusted in respect of the aggregate of rates,
rents, fees, and charges from all projects so as to provide funds
sufficient with other revenues and moneys available therefor, if any,
to do all of the following:
(a) Pay the principal of and the interest on outstanding bonds,
notes, or other evidences of indebtedness of the authority financing
such project as the same shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, such bonds,
notes, or other evidences of indebtedness. A sufficient amount of the
revenues derived from a project may be set aside at such regular
intervals as may be provided in such resolution or trust agreement in
a sinking or other similar fund which is hereby pledged to, and
charged with, the payment of the principal of and interest on such
bonds, notes, or other evidences of indebtedness as the same shall
become due, and the redemption price or the purchase price of bonds,
notes, or other evidences of indebtedness retired by call or purchase
as therein provided. Such pledge 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 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 the authority, irrespective of whether such parties have
notice thereof. Neither the resolution nor any trust agreement nor
any other agreement nor any lease by which a pledge is created need
be filed or recorded except in the records of the authority. The use
and disposition of moneys to the credit of such sinking or other
similar fund shall be subject to the provisions of the resolution
authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust
agreement, such sinking or other similar fund may be a fund for all
bonds, notes, or other evidences of indebtedness of the authority
financing projects of a particular participating party without
distinction or priority of one over another; provided, that the
authority in any such resolution or trust agreement may provide that
such sinking or other similar fund shall be the fund for a particular
project or projects and for the bonds financing a particular project
or projects 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, notes, or other evidences
of indebtedness of the authority, and, in such case, the authority
may create separate sinking or other similar funds in respect of such
subordinate lien bonds, notes, or other evidences of indebtedness.
(c) Pay operating and administrative costs of the authority.
44552. The authority may enter into contracts of sale with any
participating party covering any project financed by the authority.
The purchase price pursuant to such contract of sale shall be
sufficient to provide funds for all the purposes provided in Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise, as may be mutually agreed and set forth
in such contract of sale. All payments received by the authority
under any installment sales or conditional sales contract shall be
applied by the authority substantially in the same manner as
hereinabove provided in Section 44551 in the case of lease payments
or rental charges received by the authority.
44552.5. (a) As an alternative to leasing or selling a project to a
participating party, the authority may finance the acquisition,
construction, or installation of a project by means of a loan to the
participating party. The principal amount of the participating party'
s obligation as borrower shall be sufficient to provide funds for all
the purposes specified in subdivisions (a), (b), and (c) of Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise as may be mutually agreed by the
authority and the participating party and set forth in the loan
agreement. Loans made pursuant to this section may be secured or
unsecured in the discretion of the authority.
(b) The authority may also purchase or acquire from a financial
institution part or all of a loan made to a participating party for a
project meeting the requirements of this division.
(c) Section 44550 shall not apply to projects constructed with
moneys loaned pursuant to this section.
44553. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided in this
division. Any bank or trust company with which these moneys shall be
deposited shall act as trustee of these moneys and shall hold and
apply the same for the purposes hereof, subject to regulations as the
resolution authorizing the bonds of any issue or the trust agreement
securing these bonds may provide.
44554. Any holder of bonds, notes, or other obligations issued
under the provisions of this division, 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 trust agreement securing, bonds, notes, or other
obligations, 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
resolution or trust agreement, and may enforce and compel the
performance of all duties required by this division or by 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 the resolution or trust
agreement to be fixed, established, and collected.
44555. The exercise of the powers granted by this division shall be
in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
44556. The authority shall not be required to pay any property
taxes or assessments upon, or in respect to, a project or any
property acquired by or for the authority under the provisions of
this division or upon the income therefrom, so long as the authority
holds title to such project or the property or facilities comprised
in the project. The exemption of the authority from taxation of any
project herein provided shall cease forthwith when title to such
property is transferred from the authority to any participating
party. The provisions of this section shall not exempt any
participating party from taxation with respect to any project, or the
property or facilities comprised in any project, which may otherwise
be applicable to such participating party.
44557. Subject to Section 44562, the existence of the authority may
be terminated at any time by the Legislature. Upon dissolution of
the authority, the title to all properties owned by it shall vest in
and become the property of the State of California and shall not
inure to the benefit of any private party.
44550. The authority may contract with any participating party for
the construction or acquisition of a project by the participating
party. All contracts for the construction or acquisition of a project
by a participating party shall provide that the participating party
shall be responsible for the architectural and engineering design and
for the construction and completion thereof subject to standards for
architectural and engineering design as may be established, and
subject to supervision as the authority deems necessary. The
authority may agree to pay the cost of a project constructed or
acquired by any participating party and to advance costs from time to
time in installments or otherwise as required by the contract for
the construction or acquisition thereof. Title to all of these
projects may be vested in the authority subject to the terms of any
lease thereof to the participating party or the rights of a
participating party under any contract for the purchase or
acquisition of the project including the payment of the purchase
price under installment sales contracts.
44551. The authority may, as lessor or lessee, enter into leases
and agreements with any participating party relating to the
acquisition, construction, and installation of any project, including
real property, buildings, equipment, and pollution control
facilities of any kind or character. The terms and conditions of such
leases may be as mutually agreed upon. Any such lease may provide
the means or methods by which title shall vest in a participating
party upon the termination of the lease and shall contain such other
terms and conditions as the authority may determine. The authority is
authorized to fix, revise, charge, and collect rates, rents, fees,
and charges for each project. Such rates, rents, fees, and charges
shall be fixed and adjusted in respect of the aggregate of rates,
rents, fees, and charges from all projects so as to provide funds
sufficient with other revenues and moneys available therefor, if any,
to do all of the following:
(a) Pay the principal of and the interest on outstanding bonds,
notes, or other evidences of indebtedness of the authority financing
such project as the same shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, such bonds,
notes, or other evidences of indebtedness. A sufficient amount of the
revenues derived from a project may be set aside at such regular
intervals as may be provided in such resolution or trust agreement in
a sinking or other similar fund which is hereby pledged to, and
charged with, the payment of the principal of and interest on such
bonds, notes, or other evidences of indebtedness as the same shall
become due, and the redemption price or the purchase price of bonds,
notes, or other evidences of indebtedness retired by call or purchase
as therein provided. Such pledge 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 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 the authority, irrespective of whether such parties have
notice thereof. Neither the resolution nor any trust agreement nor
any other agreement nor any lease by which a pledge is created need
be filed or recorded except in the records of the authority. The use
and disposition of moneys to the credit of such sinking or other
similar fund shall be subject to the provisions of the resolution
authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust
agreement, such sinking or other similar fund may be a fund for all
bonds, notes, or other evidences of indebtedness of the authority
financing projects of a particular participating party without
distinction or priority of one over another; provided, that the
authority in any such resolution or trust agreement may provide that
such sinking or other similar fund shall be the fund for a particular
project or projects and for the bonds financing a particular project
or projects 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, notes, or other evidences
of indebtedness of the authority, and, in such case, the authority
may create separate sinking or other similar funds in respect of such
subordinate lien bonds, notes, or other evidences of indebtedness.
(c) Pay operating and administrative costs of the authority.
44552. The authority may enter into contracts of sale with any
participating party covering any project financed by the authority.
The purchase price pursuant to such contract of sale shall be
sufficient to provide funds for all the purposes provided in Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise, as may be mutually agreed and set forth
in such contract of sale. All payments received by the authority
under any installment sales or conditional sales contract shall be
applied by the authority substantially in the same manner as
hereinabove provided in Section 44551 in the case of lease payments
or rental charges received by the authority.
44552.5. (a) As an alternative to leasing or selling a project to a
participating party, the authority may finance the acquisition,
construction, or installation of a project by means of a loan to the
participating party. The principal amount of the participating party'
s obligation as borrower shall be sufficient to provide funds for all
the purposes specified in subdivisions (a), (b), and (c) of Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise as may be mutually agreed by the
authority and the participating party and set forth in the loan
agreement. Loans made pursuant to this section may be secured or
unsecured in the discretion of the authority.
(b) The authority may also purchase or acquire from a financial
institution part or all of a loan made to a participating party for a
project meeting the requirements of this division.
(c) Section 44550 shall not apply to projects constructed with
moneys loaned pursuant to this section.
44553. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided in this
division. Any bank or trust company with which these moneys shall be
deposited shall act as trustee of these moneys and shall hold and
apply the same for the purposes hereof, subject to regulations as the
resolution authorizing the bonds of any issue or the trust agreement
securing these bonds may provide.
44554. Any holder of bonds, notes, or other obligations issued
under the provisions of this division, 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 trust agreement securing, bonds, notes, or other
obligations, 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
resolution or trust agreement, and may enforce and compel the
performance of all duties required by this division or by 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 the resolution or trust
agreement to be fixed, established, and collected.
44555. The exercise of the powers granted by this division shall be
in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
44556. The authority shall not be required to pay any property
taxes or assessments upon, or in respect to, a project or any
property acquired by or for the authority under the provisions of
this division or upon the income therefrom, so long as the authority
holds title to such project or the property or facilities comprised
in the project. The exemption of the authority from taxation of any
project herein provided shall cease forthwith when title to such
property is transferred from the authority to any participating
party. The provisions of this section shall not exempt any
participating party from taxation with respect to any project, or the
property or facilities comprised in any project, which may otherwise
be applicable to such participating party.
44557. Subject to Section 44562, the existence of the authority may
be terminated at any time by the Legislature. Upon dissolution of
the authority, the title to all properties owned by it shall vest in
and become the property of the State of California and shall not
inure to the benefit of any private party.
44550. The authority may contract with any participating party for
the construction or acquisition of a project by the participating
party. All contracts for the construction or acquisition of a project
by a participating party shall provide that the participating party
shall be responsible for the architectural and engineering design and
for the construction and completion thereof subject to standards for
architectural and engineering design as may be established, and
subject to supervision as the authority deems necessary. The
authority may agree to pay the cost of a project constructed or
acquired by any participating party and to advance costs from time to
time in installments or otherwise as required by the contract for
the construction or acquisition thereof. Title to all of these
projects may be vested in the authority subject to the terms of any
lease thereof to the participating party or the rights of a
participating party under any contract for the purchase or
acquisition of the project including the payment of the purchase
price under installment sales contracts.
44551. The authority may, as lessor or lessee, enter into leases
and agreements with any participating party relating to the
acquisition, construction, and installation of any project, including
real property, buildings, equipment, and pollution control
facilities of any kind or character. The terms and conditions of such
leases may be as mutually agreed upon. Any such lease may provide
the means or methods by which title shall vest in a participating
party upon the termination of the lease and shall contain such other
terms and conditions as the authority may determine. The authority is
authorized to fix, revise, charge, and collect rates, rents, fees,
and charges for each project. Such rates, rents, fees, and charges
shall be fixed and adjusted in respect of the aggregate of rates,
rents, fees, and charges from all projects so as to provide funds
sufficient with other revenues and moneys available therefor, if any,
to do all of the following:
(a) Pay the principal of and the interest on outstanding bonds,
notes, or other evidences of indebtedness of the authority financing
such project as the same shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, such bonds,
notes, or other evidences of indebtedness. A sufficient amount of the
revenues derived from a project may be set aside at such regular
intervals as may be provided in such resolution or trust agreement in
a sinking or other similar fund which is hereby pledged to, and
charged with, the payment of the principal of and interest on such
bonds, notes, or other evidences of indebtedness as the same shall
become due, and the redemption price or the purchase price of bonds,
notes, or other evidences of indebtedness retired by call or purchase
as therein provided. Such pledge 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 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 the authority, irrespective of whether such parties have
notice thereof. Neither the resolution nor any trust agreement nor
any other agreement nor any lease by which a pledge is created need
be filed or recorded except in the records of the authority. The use
and disposition of moneys to the credit of such sinking or other
similar fund shall be subject to the provisions of the resolution
authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust
agreement, such sinking or other similar fund may be a fund for all
bonds, notes, or other evidences of indebtedness of the authority
financing projects of a particular participating party without
distinction or priority of one over another; provided, that the
authority in any such resolution or trust agreement may provide that
such sinking or other similar fund shall be the fund for a particular
project or projects and for the bonds financing a particular project
or projects 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, notes, or other evidences
of indebtedness of the authority, and, in such case, the authority
may create separate sinking or other similar funds in respect of such
subordinate lien bonds, notes, or other evidences of indebtedness.
(c) Pay operating and administrative costs of the authority.
44552. The authority may enter into contracts of sale with any
participating party covering any project financed by the authority.
The purchase price pursuant to such contract of sale shall be
sufficient to provide funds for all the purposes provided in Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise, as may be mutually agreed and set forth
in such contract of sale. All payments received by the authority
under any installment sales or conditional sales contract shall be
applied by the authority substantially in the same manner as
hereinabove provided in Section 44551 in the case of lease payments
or rental charges received by the authority.
44552.5. (a) As an alternative to leasing or selling a project to a
participating party, the authority may finance the acquisition,
construction, or installation of a project by means of a loan to the
participating party. The principal amount of the participating party'
s obligation as borrower shall be sufficient to provide funds for all
the purposes specified in subdivisions (a), (b), and (c) of Section
44551 and may be paid in installments, together with interest on the
unpaid balance, or otherwise as may be mutually agreed by the
authority and the participating party and set forth in the loan
agreement. Loans made pursuant to this section may be secured or
unsecured in the discretion of the authority.
(b) The authority may also purchase or acquire from a financial
institution part or all of a loan made to a participating party for a
project meeting the requirements of this division.
(c) Section 44550 shall not apply to projects constructed with
moneys loaned pursuant to this section.
44553. All moneys received pursuant to the provisions of this
division, whether as proceeds from the sale of bonds, notes, or other
evidences of indebtedness or as revenues, shall be deemed to be
trust funds to be held and applied solely as provided in this
division. Any bank or trust company with which these moneys shall be
deposited shall act as trustee of these moneys and shall hold and
apply the same for the purposes hereof, subject to regulations as the
resolution authorizing the bonds of any issue or the trust agreement
securing these bonds may provide.
44554. Any holder of bonds, notes, or other obligations issued
under the provisions of this division, 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 trust agreement securing, bonds, notes, or other
obligations, 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
resolution or trust agreement, and may enforce and compel the
performance of all duties required by this division or by 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 the resolution or trust
agreement to be fixed, established, and collected.
44555. The exercise of the powers granted by this division shall be
in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
44556. The authority shall not be required to pay any property
taxes or assessments upon, or in respect to, a project or any
property acquired by or for the authority under the provisions of
this division or upon the income therefrom, so long as the authority
holds title to such project or the property or facilities comprised
in the project. The exemption of the authority from taxation of any
project herein provided shall cease forthwith when title to such
property is transferred from the authority to any participating
party. The provisions of this section shall not exempt any
participating party from taxation with respect to any project, or the
property or facilities comprised in any project, which may otherwise
be applicable to such participating party.
44557. Subject to Section 44562, the existence of the authority may
be terminated at any time by the Legislature. Upon dissolution of
the authority, the title to all properties owned by it shall vest in
and become the property of the State of California and shall not
inure to the benefit of any private party.
