55100-55117

HEALTH AND SAFETY CODE
SECTION 55100-55117




55100.  The local agency may, from time to time, issue its bonds in
the principal amount as the local agency shall determine to be
necessary to provide sufficient funds for financing under this
division and for the payment of interest on bonds of the local
agency, establishment of reserves to secure the bonds, and other
expenditures of the local agency incident to, and necessary or
convenient to, issuance of the bonds.
   Prior to the issuance of any bonds pursuant to this division, the
local agency shall submit to the California Housing Finance Agency, a
statement of purpose for which the bonds are proposed to be issued
and the amount of the proposed issuance. The California Housing
Finance Agency shall review every statement submitted to it by a
local agency pursuant to this section. The California Housing Finance
Agency shall determine the general adequacy of the program's
security in protecting the state's credit. If the California Housing
Finance Agency finds the state's credit would be subject to an undue
risk, it may disapprove the proposed issuance or reduce the amount of
the proposed issuance. If the California Housing Finance Agency has
not acted within 30 days of the date that a statement was submitted
pursuant to this section, the proposed issuance shall be deemed
approved by the California Housing Finance Agency.
   The aggregate amount of all bonds approved by the California
Housing Finance Agency pursuant to this section shall not exceed two
hundred million dollars ($200,000,000). The California Housing
Finance Agency shall reserve seventy-five million dollars
($75,000,000), which shall not be allocated for 24 months after the
effective date of this division. No agency shall initially receive an
allocation exceeding fifty million dollars ($50,000,000). If an
initial request exceeds one hundred twenty-five million dollars
($125,000,000), the California Housing Finance Agency shall reduce
all requests on the basis of the ratio of eligible buildings in the
jurisdiction to the estimated number of eligible buildings in the
state as determined by the Seismic Safety Commission until one
hundred twenty-five million dollars ($125,000,000) is reached.
Twenty-four months after the effective date of this division, the
California Housing Finance Agency may allocate any remaining funds.
Funds shall first be allocated to any local agency that has not
received an allocation. If these requests exceed the available funds,
the California Housing Finance Agency shall reduce all requests on
the basis of the ratio of eligible buildings in the jurisdiction to
the estimated number of eligible buildings in the state, as
determined by the Seismic Safety Commission. If there are funds
remaining after allowing for requests by local agencies that have not
previously received an allocation, any local agency which had
previously received an allocation may request further allocations.
Any allocations made to local agencies that have previously received
allocations shall be made only on the basis of the ratio of eligible
buildings in the jurisdiction to the estimated number of eligible
buildings in the state, as determined by the Seismic Safety
Commission. Eligible buildings in the jurisdiction shall be
determined on the basis of an inventory. After that authorization has
been exhausted, all further proposals for issuance of bonds pursuant
to this division shall be deemed disapproved by the California
Housing Finance Agency.
   The local agency shall reimburse the California Housing Finance
Agency for all administrative costs incurred by the California
Housing Finance Agency pursuant to this section.



55101.  The bonds shall be authorized by resolution or resolutions
of the legislative body of the local agency, shall bear such date or
dates, and shall mature at the time or times as the resolution or
resolutions may provide, except that no bond shall mature more than
40 years from the date of its issuance. The bonds may be issued as
serial bonds or as term bonds, or as a combination thereof, and,
notwithstanding any other provision of law, the amount of principal
of, or interest on, bonds maturing at each date of maturity need not
be equal. The bonds shall bear interest at the rate or rates, be in
the denominations, be in the form, either coupon or registered, carry
the registration privileges, be executed in the manner, be payable
in the medium of payment at the place or places within or without the
state, and be subject to the terms of redemption as the resolution
or resolutions may provide.
   The bonds may be sold at public or private sale in the manner and
upon the terms as may be provided in the resolution or by separate
resolution. Pending the preparation of definitive bonds, interim
receipts or certificates in the form and with any provisions as may
be provided in the resolution, may be issued to the purchaser or
purchasers of bonds sold pursuant to this division. The bonds and
interim receipts or certificates shall be deemed to be securities and
negotiable instruments within the meaning of, and for all the
purposes of, the California Uniform Commercial Code, subject to the
provisions for registration thereof contained in the resolution.



55102.  The local agency may, from time to time, issue (1) bonds to
renew bonds and (2) other bond obligations to pay bonds including the
interest thereon, and, whenever it deems refunding expedient, to
refund any bonds by the issuance of new bonds, whether the bonds to
be refunded have or have not matured.


55103.  Any resolution or resolutions authorizing any bonds or issue
thereof may contain provisions, which shall be a part of the
contract or contracts with the holders thereof, as to:
   (a) Pledging all or any part of the revenues accruing to the local
agency pursuant to this division to secure the payment of the bonds
or any issue thereof, subject to any agreements with bondholders as
may then exist.
   (b) Pledging all or any part of the assets of the local agency
under this division, including mortgages and obligations securing the
same, to secure the payment of the bonds or any issue thereof,
subject to any agreements with bondholders as may then exist.
   (c) The use and disposition of the gross income from financing
obligations owned by the local agency and payment of principal of
financing obligations owned by the local agency.
   (d) The setting aside of reserves or sinking funds and the
regulation and disposition thereof.
   (e) Limitations on the purposes to which the proceeds of a sale of
bonds may be applied and pledging the proceeds to secure the payment
of the bonds or of any issue thereof.
   (f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
   (g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which the
consent may be given.
   (h) Limitations on the amount of money to be expended by the local
agency for operating expenses of the local agency under this
division.
   (i) Vesting in a trustee or trustees any property, rights, powers,
and duties in trust as the local agency may determine, which may
include any or all of the rights, powers, and duties of the trustee
appointed on behalf of the bondholders pursuant to this part and
limiting or abrogating the right of the bondholders to appoint a
trustee or limiting the rights, powers, and duties of the trustee.
   (j) Defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the local agency to the
holders of the bonds and providing for the rights and remedies of the
holders of the bonds in the event of a default. However, the rights
and remedies shall not be inconsistent with the general laws of the
state and the other provisions of this division.
   (k) Any other matters, of like or different character, which in
any way affect the security, protection, or investment return of the
holders of the bonds.



55104.  Any resolution or resolutions authorizing any bonds or issue
thereof shall specify the extent to which revenues resulting from
financing provided with proceeds of the bonds so authorized are to be
used to secure the bonds and the extent to which the revenues may be
used for other purposes.


55105.  Any pledge made by the local agency shall be valid and
binding from the time when the pledge is made. The revenues, moneys,
or property so pledged and thereafter received by the local agency
shall immediately be subject to the lien of the pledge without any
physical delivery thereof or further act, and the lien of the pledge
shall be valid and binding as against all parties having claims of
any kind in tort, contract, or otherwise against the local agency,
irrespective of whether the parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need
be recorded.


55106.  Bond underwriters and consultants may be selected by the
local agency.


55107.  Neither the members of the legislative body of the local
agency, nor any official or employee thereof, nor any other person
executing the bonds shall be subject to any personal liability or
accountability by reason of the issuance thereof.




55108.  Any resolution authorizing any bonds or issue thereof may
designate a trustee for the local agency and holders of its bonds,
and shall in such case prescribe the duties of the trustee with
respect to the issuance, authentication, sale, and delivery of the
bonds, the payment of principal and interest thereof, and the
redemption of bonds.
   The legislative body of the local agency may provide by a
resolution for the deposit of all revenues pledged for the security
of the bonds in one or more separate accounts under the control of
the trustee. The money in the accounts shall be disbursed only as
provided in the resolution.
   The resolution may authorize the trustee to act on behalf of the
holders of bonds, or any stated percentage thereof, for the purpose
of exercising and prosecuting on behalf of the holders of the bonds
any rights and remedies as may be available to the holders.




55109.  The trustee acting on behalf of bondholders shall have and
possess all the powers necessary or convenient for the exercise of
any functions specifically set forth in this part or incident to the
general representation of bondholders in the enforcement and
protection of their rights.



55110.  Whether or not the bonds are of the form and character as to
be negotiable instruments under, or subject to, the terms of the
California Uniform Commercial Code, the bonds and any security
instruments underlying the bonds are hereby made negotiable
instruments within the meaning of, and for all the purposes of, the
California Uniform Commercial Code, subject to the provisions for
registration of the bonds contained in the resolution.



55111.  In the event any person whose signature appears on the bonds
ceases to hold office prior to delivery of the bonds, the signature
shall nevertheless be valid and sufficient for all purposes, the same
as if the person had remained in office until the delivery.



55112.  The local agency may create one or more bond reserve
accounts to secure payments of the principal of, and interest and
sinking fund payments on, any bonds or any issuance thereof, as
specified in the resolution authorizing the bonds.




55113.  The local agency may provide for the issuance of refunding
bonds for the purpose of refunding any bonds then outstanding which
have been issued under the provisions of this part, including the
payment of any redemption premium thereon and any interest accrued or
to accrue to the date of redemption of the bonds. The issuance of
refunding bonds, the maturities and other details thereof, the rights
of the holders thereof, and the rights, duties, and obligations of
the local agency in respect of the same shall be governed by the
provisions of this part which relate to the issuance of bonds,
insofar as the provisions may be appropriate therefor.



55114.  Refunding bonds may be sold or exchanged for outstanding
bonds issued under this part and, if sold, the proceeds thereof may
be applied, in addition to any other authorized purposes, to the
purchase, redemption, or payment of the outstanding bonds. Pending
the application of the proceeds of any refunding bonds, with any
other available moneys, (1) to the payment of the principal, accrued
interest, and any redemption premium on the bonds being refunded, (2)
to the payment of any interest on the refunding bonds, or (3) to any
expenses incurred in connection with refunding, the proceeds may be
invested in any obligations permitted under the bond resolution
authorizing the issuance of refunding bonds.



55115.  The state does hereby pledge to and agree with the holders
of any bonds issued under this part that the state will not limit or
alter the rights hereby vested in the local agency to fulfill the
terms of any agreements made with the holders thereof or in any way
impair the rights and remedies of the holders until the bonds,
together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection
with any action or proceeding by or on behalf of the holders, are
fully met and discharged. The local agency is authorized to include
this pledge and agreement of the state in any agreement with the
holders of the bonds.



55116.  All bonds issued pursuant to this division shall be limited
obligations of the local agency issuing the same, payable solely out
of the revenues and receipts derived from or with respect to
financing under this division or from or with respect to any notes or
other obligations of lending institutions with respect to which the
bonds are issued. No holder of any bonds issued under this division
has the right to compel any exercise of the taxing power of a local
agency to pay the bonds, the interest or redemption premium, if any,
thereon, and the bonds shall not constitute an indebtedness of the
issuing local agency or a loan of credit thereof within the meaning
of any constitutional or statutory provision, nor shall the bonds be
construed to create any moral obligation on the part of the issuing
local agency or any agency or subdivision thereof with respect to the
payment of the bonds. It shall be plainly stated on the face of each
bond that it has been issued under the provisions of this divison
and that it does not constitute an indebtedness of the local agency
issuing the bond or a loan of credit thereof within the meaning of
any constitutional or statutory provisions.


55117.  The bonds shall be legal investments in which all public
officers and public bodies of this state, its political subdivisions,
all municipalities and municipal subdivisions, all insurance
companies and associations and other persons carrying on an insurance
business, all banks, bankers, banking institutions, including
savings and loan associations, building and loan associations, trust
companies, savings banks and savings associations, investment
companies and other persons carrying on a banking business, all
administrators, guardians, executors, trustees and other fiduciaries,
and all other persons whatsoever who are now or may hereafter be
authorized to invest in bonds or in other obligations of the state,
may properly and legally invest funds, including capital, in their
control or belonging to them. The bonds may be used by any such
private financial institution, person, or association as security for
public deposits. The bonds are also hereby made securities which may
properly and legally be deposited with and received by all public
officers and bodies of the state or any agency or political
subdivision of the state and all municipalities and public
corporations for any purpose for which the deposit of bonds or other
obligations of the state is now or may hereafter be authorized by
law, including deposits to secure public funds.