State Codes and Statutes

Statutes > California > Prc > 26020-26027

PUBLIC RESOURCES CODE
SECTION 26020-26027



26020.  (a) The authority may incur indebtedness and issue and renew
negotiable bonds, notes, debentures, or other securities of any kind
or class. All indebtedness, however evidenced, shall be payable
solely from revenues of the authority and the proceeds of its
negotiable bonds, notes, debentures, or other securities, and shall
not exceed the sum of one billion dollars ($1,000,000,000) of total
debt outstanding.
   (b) As used in this section, "total debt outstanding" does not
include either of the following:
   (1) A bond for which provisions have been made for prepayment
through irrevocable escrow or other means, so that the bond is not
considered outstanding under its authorizing document.
   (2) Indebtedness that is incurred to refund existing debts, except
to the extent that the indebtedness exceeds the amount of those
debts.


26021.  The Legislature may, by statute, authorize the authority to
issue bonds, as defined in Section 26022, in excess of the amount
provided in Section 26020.



26022.  (a) The authority is authorized from time to time to issue
its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any of its purposes.
The bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties, or the purchase and sale of
alternative source energy or projects pursuant to subdivision (g) of
Section 26011. In anticipation of the sale of bonds as authorized by
Section 26020, or as may be authorized pursuant to Section 26021, the
authority may issue negotiable bond anticipation notes and may renew
the notes from time to time. The bond anticipation notes may be paid
from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
to the notes and bond anticipation notes, collectively called notes,
and the resolution or resolutions authorizing the notes may contain
any provisions, conditions or limitations that a bond, agreement
relating to the bond, and bond resolution of the authority may
contain. However, a note or renewal of the note shall mature at a
time not exceeding two years from the date of issue of the original
note.
   (b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligations
shall be general obligations of the authority payable from any
revenues or moneys of the authority available for these purposes and
not otherwise pledged, subject only to any agreements with the
holders of particular bonds, notes, or other obligations pledging any
particular revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that the bonds, notes, or other
obligations may be payable from a special fund, they are for all
purposes negotiable instruments, subject only to the provisions of
the bonds, notes, or other obligations for registration.
   (c) Subject to the limitations in Sections 26020 and 26021, the
bonds may be issued as serial bonds or as term bonds, or the
authority, in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the rate or
rates, be payable at the time or times, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
terms of redemption, as the resolution or resolutions may provide.
The bonds or notes shall be sold by the Treasurer within 60 days of
receipt of a certified copy of the authority's resolution authorizing
the sale of the bonds. However, the authority, at its discretion,
may adopt a resolution extending the 60-day period. The sales may be
a public or private sale, and for the price or prices and on the
terms and conditions, as the authority shall determine after giving
due consideration to the recommendations of any participating party
to be assisted from the proceeds of the bonds or notes. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds that shall be exchanged
for the definitive bonds. The Treasurer may sell bonds, notes, or
other evidence of indebtedness at a price below their par value.
However, the discount on a security sold pursuant to this section
shall not exceed 6 percent of the par value.
   (d) A resolution or resolutions authorizing bonds or an issue of
bonds may contain provisions that shall be a part of the contract
with the holders of the bonds to be authorized, as to all of the
following:
   (1) Pledging the full faith and credit of the authority or
pledging all or part of the revenues of a project or a
revenue-producing contract or contracts made by the authority with an
individual, partnership, corporation, or association or other body,
public or private, or other moneys of the authority, to secure the
payment of the bonds or of any particular issue of bonds, subject to
the agreements with bondholders as may then exist.
   (2) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year by the charges, and the use and disposition of the revenues.
   (3) The setting aside of reserves or sinking funds, and the
regulation and disposition of the reserves or sinking funds.
   (4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
   (5) Limitations on the purpose to which the proceeds of sale of an
issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or the
issue of the bonds.
   (6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (7) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent to the amendment or abrogation, and the
manner in which that consent may be given.
   (8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
   (9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of the holders in the event of
a default.
   (10) The mortgaging of a project and the site of the project for
the purpose of securing the bondholders.
   (11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
   (12) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and
participating parties to receive the financing.
   (e) Neither the members of the authority nor a person executing
the bonds or notes shall be liable personally on the bonds or notes
or be subject to personal liability or accountability by reason of
the issuance of the bond or note.
   (f) The authority shall have power out of any funds available for
these purposes to purchase its bonds or notes. The authority may
hold, pledge, cancel, or resell those bonds, subject to and in
accordance with agreements with bondholders.



26023.  In the discretion of the authority, any bonds issued under
the provisions of this division may be secured by a trust agreement
by and between the authority and a corporate trustee or trustees,
which may be the State Treasurer or any trust company or bank having
the powers of a trust company within or without the state. Such trust
agreement or the resolution providing for the issuance of such bonds
may pledge or assign the revenues to be received or proceeds of any
contract or contracts pledged and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of such bonds. Such trust agreement or resolution providing
for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders
as may be reasonable and proper and not in violation of law,
including particularly such provisions as have hereinabove been
specifically authorized to be included in any resolution or
resolutions of the authority authorizing bonds thereof. Any bank or
trust company doing business under the laws of this state which may
act as depositary of the proceeds of bonds or of revenues or other
moneys may furnish such indemnifying bonds or pledge such securities
as may be required by the authority. Any such trust agreement may set
forth the rights and remedies of the bondholders and of the trustee
or trustees, and may restrict the individual right of action by
bondholders. In addition to the foregoing, any such trust agreement
or resolution may contain such other provisions as the authority may
deem reasonable and proper for the security of the bondholders.
Notwithstanding any other provision of law, the State Treasurer shall
not be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division. All expenses incurred in carrying
out the provisions of such trust agreement or resolution may be
treated as a part of the cost of the operation of a project.




26024.  Bonds issued under the provisions of this division shall not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, other than the authority, or a pledge
of the faith and credit of the state or of any such political
subdivision, other than the authority, but shall be payable solely
from the funds herein provided therefor. All such bonds shall contain
on the face thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of the principal of or interest
on this bond."
   The issuance of bonds under the provisions of this division shall
not directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing contained in this section shall prevent nor be
construed to prevent the authority from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this division.


26025.  (a) The authority is hereby authorized to provide for the
issuance of bonds of the authority for the purpose of refunding any
bonds, notes, or other securities of the authority then outstanding,
including the payment of any redemption premium thereon 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 constructing and acquiring additions,
improvements, extensions, or enlargements of a project or any portion
thereof.
   (b) The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending such application,
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.
   (c) Pending such use, any such escrowed proceeds may be invested
and reinvested by the State Treasurer 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 at such time or times as
shall be appropriate to assure the prompt payment, as to principal,
interest, and redemption premium, if any, of the outstanding bonds to
be so refunded. The interest, income, and profits, if any, earned or
realized on any such investment may also be applied to the payment
of the outstanding bonds to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income, and profits, if any, earned or
realized on the investments thereof may be returned to the authority
for use by it in any lawful manner.
   (d) The portion of the proceeds of any such bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested by the State
Treasurer 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 when such proceeds will be
needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such
investment may be applied to the payment of all or any part of such
cost or may be used by the authority in any lawful manner.
   (e) All such bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this division.


26026.  Bonds issued by the authority are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds are securities which may
properly and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state
for any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of such bonds qualify
or are eligible for such purposes and uses.


26027.  No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division; except
that for the purposes of meeting the necessary expenses of initial
organization and operation until such date as the authority derives
revenues or proceeds from bonds or notes as provided under this
division, the authority may borrow money as needed for such expenses
from the State Energy Resources Conservation and Development Special
Account in the General Fund in the State Treasury. Such borrowed
moneys shall be repaid with interest within a reasonable time after
the authority receives revenues or proceeds from bonds or notes as
provided under this division.

State Codes and Statutes

Statutes > California > Prc > 26020-26027

PUBLIC RESOURCES CODE
SECTION 26020-26027



26020.  (a) The authority may incur indebtedness and issue and renew
negotiable bonds, notes, debentures, or other securities of any kind
or class. All indebtedness, however evidenced, shall be payable
solely from revenues of the authority and the proceeds of its
negotiable bonds, notes, debentures, or other securities, and shall
not exceed the sum of one billion dollars ($1,000,000,000) of total
debt outstanding.
   (b) As used in this section, "total debt outstanding" does not
include either of the following:
   (1) A bond for which provisions have been made for prepayment
through irrevocable escrow or other means, so that the bond is not
considered outstanding under its authorizing document.
   (2) Indebtedness that is incurred to refund existing debts, except
to the extent that the indebtedness exceeds the amount of those
debts.


26021.  The Legislature may, by statute, authorize the authority to
issue bonds, as defined in Section 26022, in excess of the amount
provided in Section 26020.



26022.  (a) The authority is authorized from time to time to issue
its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any of its purposes.
The bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties, or the purchase and sale of
alternative source energy or projects pursuant to subdivision (g) of
Section 26011. In anticipation of the sale of bonds as authorized by
Section 26020, or as may be authorized pursuant to Section 26021, the
authority may issue negotiable bond anticipation notes and may renew
the notes from time to time. The bond anticipation notes may be paid
from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
to the notes and bond anticipation notes, collectively called notes,
and the resolution or resolutions authorizing the notes may contain
any provisions, conditions or limitations that a bond, agreement
relating to the bond, and bond resolution of the authority may
contain. However, a note or renewal of the note shall mature at a
time not exceeding two years from the date of issue of the original
note.
   (b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligations
shall be general obligations of the authority payable from any
revenues or moneys of the authority available for these purposes and
not otherwise pledged, subject only to any agreements with the
holders of particular bonds, notes, or other obligations pledging any
particular revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that the bonds, notes, or other
obligations may be payable from a special fund, they are for all
purposes negotiable instruments, subject only to the provisions of
the bonds, notes, or other obligations for registration.
   (c) Subject to the limitations in Sections 26020 and 26021, the
bonds may be issued as serial bonds or as term bonds, or the
authority, in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the rate or
rates, be payable at the time or times, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
terms of redemption, as the resolution or resolutions may provide.
The bonds or notes shall be sold by the Treasurer within 60 days of
receipt of a certified copy of the authority's resolution authorizing
the sale of the bonds. However, the authority, at its discretion,
may adopt a resolution extending the 60-day period. The sales may be
a public or private sale, and for the price or prices and on the
terms and conditions, as the authority shall determine after giving
due consideration to the recommendations of any participating party
to be assisted from the proceeds of the bonds or notes. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds that shall be exchanged
for the definitive bonds. The Treasurer may sell bonds, notes, or
other evidence of indebtedness at a price below their par value.
However, the discount on a security sold pursuant to this section
shall not exceed 6 percent of the par value.
   (d) A resolution or resolutions authorizing bonds or an issue of
bonds may contain provisions that shall be a part of the contract
with the holders of the bonds to be authorized, as to all of the
following:
   (1) Pledging the full faith and credit of the authority or
pledging all or part of the revenues of a project or a
revenue-producing contract or contracts made by the authority with an
individual, partnership, corporation, or association or other body,
public or private, or other moneys of the authority, to secure the
payment of the bonds or of any particular issue of bonds, subject to
the agreements with bondholders as may then exist.
   (2) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year by the charges, and the use and disposition of the revenues.
   (3) The setting aside of reserves or sinking funds, and the
regulation and disposition of the reserves or sinking funds.
   (4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
   (5) Limitations on the purpose to which the proceeds of sale of an
issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or the
issue of the bonds.
   (6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (7) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent to the amendment or abrogation, and the
manner in which that consent may be given.
   (8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
   (9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of the holders in the event of
a default.
   (10) The mortgaging of a project and the site of the project for
the purpose of securing the bondholders.
   (11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
   (12) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and
participating parties to receive the financing.
   (e) Neither the members of the authority nor a person executing
the bonds or notes shall be liable personally on the bonds or notes
or be subject to personal liability or accountability by reason of
the issuance of the bond or note.
   (f) The authority shall have power out of any funds available for
these purposes to purchase its bonds or notes. The authority may
hold, pledge, cancel, or resell those bonds, subject to and in
accordance with agreements with bondholders.



26023.  In the discretion of the authority, any bonds issued under
the provisions of this division may be secured by a trust agreement
by and between the authority and a corporate trustee or trustees,
which may be the State Treasurer or any trust company or bank having
the powers of a trust company within or without the state. Such trust
agreement or the resolution providing for the issuance of such bonds
may pledge or assign the revenues to be received or proceeds of any
contract or contracts pledged and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of such bonds. Such trust agreement or resolution providing
for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders
as may be reasonable and proper and not in violation of law,
including particularly such provisions as have hereinabove been
specifically authorized to be included in any resolution or
resolutions of the authority authorizing bonds thereof. Any bank or
trust company doing business under the laws of this state which may
act as depositary of the proceeds of bonds or of revenues or other
moneys may furnish such indemnifying bonds or pledge such securities
as may be required by the authority. Any such trust agreement may set
forth the rights and remedies of the bondholders and of the trustee
or trustees, and may restrict the individual right of action by
bondholders. In addition to the foregoing, any such trust agreement
or resolution may contain such other provisions as the authority may
deem reasonable and proper for the security of the bondholders.
Notwithstanding any other provision of law, the State Treasurer shall
not be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division. All expenses incurred in carrying
out the provisions of such trust agreement or resolution may be
treated as a part of the cost of the operation of a project.




26024.  Bonds issued under the provisions of this division shall not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, other than the authority, or a pledge
of the faith and credit of the state or of any such political
subdivision, other than the authority, but shall be payable solely
from the funds herein provided therefor. All such bonds shall contain
on the face thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of the principal of or interest
on this bond."
   The issuance of bonds under the provisions of this division shall
not directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing contained in this section shall prevent nor be
construed to prevent the authority from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this division.


26025.  (a) The authority is hereby authorized to provide for the
issuance of bonds of the authority for the purpose of refunding any
bonds, notes, or other securities of the authority then outstanding,
including the payment of any redemption premium thereon 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 constructing and acquiring additions,
improvements, extensions, or enlargements of a project or any portion
thereof.
   (b) The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending such application,
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.
   (c) Pending such use, any such escrowed proceeds may be invested
and reinvested by the State Treasurer 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 at such time or times as
shall be appropriate to assure the prompt payment, as to principal,
interest, and redemption premium, if any, of the outstanding bonds to
be so refunded. The interest, income, and profits, if any, earned or
realized on any such investment may also be applied to the payment
of the outstanding bonds to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income, and profits, if any, earned or
realized on the investments thereof may be returned to the authority
for use by it in any lawful manner.
   (d) The portion of the proceeds of any such bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested by the State
Treasurer 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 when such proceeds will be
needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such
investment may be applied to the payment of all or any part of such
cost or may be used by the authority in any lawful manner.
   (e) All such bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this division.


26026.  Bonds issued by the authority are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds are securities which may
properly and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state
for any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of such bonds qualify
or are eligible for such purposes and uses.


26027.  No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division; except
that for the purposes of meeting the necessary expenses of initial
organization and operation until such date as the authority derives
revenues or proceeds from bonds or notes as provided under this
division, the authority may borrow money as needed for such expenses
from the State Energy Resources Conservation and Development Special
Account in the General Fund in the State Treasury. Such borrowed
moneys shall be repaid with interest within a reasonable time after
the authority receives revenues or proceeds from bonds or notes as
provided under this division.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Prc > 26020-26027

PUBLIC RESOURCES CODE
SECTION 26020-26027



26020.  (a) The authority may incur indebtedness and issue and renew
negotiable bonds, notes, debentures, or other securities of any kind
or class. All indebtedness, however evidenced, shall be payable
solely from revenues of the authority and the proceeds of its
negotiable bonds, notes, debentures, or other securities, and shall
not exceed the sum of one billion dollars ($1,000,000,000) of total
debt outstanding.
   (b) As used in this section, "total debt outstanding" does not
include either of the following:
   (1) A bond for which provisions have been made for prepayment
through irrevocable escrow or other means, so that the bond is not
considered outstanding under its authorizing document.
   (2) Indebtedness that is incurred to refund existing debts, except
to the extent that the indebtedness exceeds the amount of those
debts.


26021.  The Legislature may, by statute, authorize the authority to
issue bonds, as defined in Section 26022, in excess of the amount
provided in Section 26020.



26022.  (a) The authority is authorized from time to time to issue
its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any of its purposes.
The bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties, or the purchase and sale of
alternative source energy or projects pursuant to subdivision (g) of
Section 26011. In anticipation of the sale of bonds as authorized by
Section 26020, or as may be authorized pursuant to Section 26021, the
authority may issue negotiable bond anticipation notes and may renew
the notes from time to time. The bond anticipation notes may be paid
from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
to the notes and bond anticipation notes, collectively called notes,
and the resolution or resolutions authorizing the notes may contain
any provisions, conditions or limitations that a bond, agreement
relating to the bond, and bond resolution of the authority may
contain. However, a note or renewal of the note shall mature at a
time not exceeding two years from the date of issue of the original
note.
   (b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligations
shall be general obligations of the authority payable from any
revenues or moneys of the authority available for these purposes and
not otherwise pledged, subject only to any agreements with the
holders of particular bonds, notes, or other obligations pledging any
particular revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that the bonds, notes, or other
obligations may be payable from a special fund, they are for all
purposes negotiable instruments, subject only to the provisions of
the bonds, notes, or other obligations for registration.
   (c) Subject to the limitations in Sections 26020 and 26021, the
bonds may be issued as serial bonds or as term bonds, or the
authority, in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the rate or
rates, be payable at the time or times, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in a manner, be payable in lawful money of
the United States of America at a place or places, and be subject to
terms of redemption, as the resolution or resolutions may provide.
The bonds or notes shall be sold by the Treasurer within 60 days of
receipt of a certified copy of the authority's resolution authorizing
the sale of the bonds. However, the authority, at its discretion,
may adopt a resolution extending the 60-day period. The sales may be
a public or private sale, and for the price or prices and on the
terms and conditions, as the authority shall determine after giving
due consideration to the recommendations of any participating party
to be assisted from the proceeds of the bonds or notes. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds that shall be exchanged
for the definitive bonds. The Treasurer may sell bonds, notes, or
other evidence of indebtedness at a price below their par value.
However, the discount on a security sold pursuant to this section
shall not exceed 6 percent of the par value.
   (d) A resolution or resolutions authorizing bonds or an issue of
bonds may contain provisions that shall be a part of the contract
with the holders of the bonds to be authorized, as to all of the
following:
   (1) Pledging the full faith and credit of the authority or
pledging all or part of the revenues of a project or a
revenue-producing contract or contracts made by the authority with an
individual, partnership, corporation, or association or other body,
public or private, or other moneys of the authority, to secure the
payment of the bonds or of any particular issue of bonds, subject to
the agreements with bondholders as may then exist.
   (2) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year by the charges, and the use and disposition of the revenues.
   (3) The setting aside of reserves or sinking funds, and the
regulation and disposition of the reserves or sinking funds.
   (4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
   (5) Limitations on the purpose to which the proceeds of sale of an
issue of bonds then or thereafter to be issued may be applied and
pledging those proceeds to secure the payment of the bonds or the
issue of the bonds.
   (6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (7) The procedure, if any, by which the terms of a contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent to the amendment or abrogation, and the
manner in which that consent may be given.
   (8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
   (9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of the holders in the event of
a default.
   (10) The mortgaging of a project and the site of the project for
the purpose of securing the bondholders.
   (11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
   (12) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and
participating parties to receive the financing.
   (e) Neither the members of the authority nor a person executing
the bonds or notes shall be liable personally on the bonds or notes
or be subject to personal liability or accountability by reason of
the issuance of the bond or note.
   (f) The authority shall have power out of any funds available for
these purposes to purchase its bonds or notes. The authority may
hold, pledge, cancel, or resell those bonds, subject to and in
accordance with agreements with bondholders.



26023.  In the discretion of the authority, any bonds issued under
the provisions of this division may be secured by a trust agreement
by and between the authority and a corporate trustee or trustees,
which may be the State Treasurer or any trust company or bank having
the powers of a trust company within or without the state. Such trust
agreement or the resolution providing for the issuance of such bonds
may pledge or assign the revenues to be received or proceeds of any
contract or contracts pledged and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of such bonds. Such trust agreement or resolution providing
for the issuance of such bonds may contain such provisions for
protecting and enforcing the rights and remedies of the bondholders
as may be reasonable and proper and not in violation of law,
including particularly such provisions as have hereinabove been
specifically authorized to be included in any resolution or
resolutions of the authority authorizing bonds thereof. Any bank or
trust company doing business under the laws of this state which may
act as depositary of the proceeds of bonds or of revenues or other
moneys may furnish such indemnifying bonds or pledge such securities
as may be required by the authority. Any such trust agreement may set
forth the rights and remedies of the bondholders and of the trustee
or trustees, and may restrict the individual right of action by
bondholders. In addition to the foregoing, any such trust agreement
or resolution may contain such other provisions as the authority may
deem reasonable and proper for the security of the bondholders.
Notwithstanding any other provision of law, the State Treasurer shall
not be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division. All expenses incurred in carrying
out the provisions of such trust agreement or resolution may be
treated as a part of the cost of the operation of a project.




26024.  Bonds issued under the provisions of this division shall not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, other than the authority, or a pledge
of the faith and credit of the state or of any such political
subdivision, other than the authority, but shall be payable solely
from the funds herein provided therefor. All such bonds shall contain
on the face thereof a statement to the following effect:
   "Neither the faith and credit nor the taxing power of the State of
California is pledged to the payment of the principal of or interest
on this bond."
   The issuance of bonds under the provisions of this division shall
not directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing contained in this section shall prevent nor be
construed to prevent the authority from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this division.


26025.  (a) The authority is hereby authorized to provide for the
issuance of bonds of the authority for the purpose of refunding any
bonds, notes, or other securities of the authority then outstanding,
including the payment of any redemption premium thereon 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 constructing and acquiring additions,
improvements, extensions, or enlargements of a project or any portion
thereof.
   (b) The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds, notes, or other securities may, in the
discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending such application,
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.
   (c) Pending such use, any such escrowed proceeds may be invested
and reinvested by the State Treasurer 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 at such time or times as
shall be appropriate to assure the prompt payment, as to principal,
interest, and redemption premium, if any, of the outstanding bonds to
be so refunded. The interest, income, and profits, if any, earned or
realized on any such investment may also be applied to the payment
of the outstanding bonds to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income, and profits, if any, earned or
realized on the investments thereof may be returned to the authority
for use by it in any lawful manner.
   (d) The portion of the proceeds of any such bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested by the State
Treasurer 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 when such proceeds will be
needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such
investment may be applied to the payment of all or any part of such
cost or may be used by the authority in any lawful manner.
   (e) All such bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this division.


26026.  Bonds issued by the authority are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds are securities which may
properly and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state
for any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of such bonds qualify
or are eligible for such purposes and uses.


26027.  No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division; except
that for the purposes of meeting the necessary expenses of initial
organization and operation until such date as the authority derives
revenues or proceeds from bonds or notes as provided under this
division, the authority may borrow money as needed for such expenses
from the State Energy Resources Conservation and Development Special
Account in the General Fund in the State Treasury. Such borrowed
moneys shall be repaid with interest within a reasonable time after
the authority receives revenues or proceeds from bonds or notes as
provided under this division.

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