33100-33148

STREETS AND HIGHWAYS CODE
SECTION 33100-33148




33100.  As used in this chapter, "bonds" means revenue bonds issued
pursuant to this part.



33101.  Bonds shall not be issued in any city until the legislative
body, either at a general or a special election, submits to the
electors of the city the question whether the city or the authority,
or both, shall be authorized to adopt the revenue bond method of
financing projects provided for in this part. If a majority of the
voters voting upon the proposition favor the proposition, the
authority, or the city, or both, as specified in the proposition, may
from time to time issue bonds in accordance with this part. In any
city in which the voters have previously authorized the issuance of
general obligation bonds or revenue bonds for parking facilities an
authority or the city, pursuant to Section 33552, may issue bonds
without submitting such proposition to the voters.



33101.5.  In lieu of the submission of such question the legislative
body may from time to time so submit to such electors the
proposition of the issuance, by the authority or the city, pursuant
to this part, of revenue bonds in a specific amount, to finance a
specific project or specific projects. If at any such election a
majority of the voters voting upon the proposition vote in favor
thereof, the power to issue revenue bonds as provided in this part
shall be operative as to the bonds so specified, and the authority,
or the city, as may have been so specified, may from time to time
issue revenue bonds in accordance with the provisions of this part in
an amount or amounts not exceeding the amount so specified for the
project or projects so specified.



33101.6.  Sections 33101 and 33101.5 shall not apply where the bonds
are issued to finance a project which is to be leased to the city
and where the principal of and interest on the bonds are to be
payable from rentals paid by the city under such lease.




33102.  The authority shall have power to borrow money to provide
funds for any project and to issue in its name revenue bonds to
evidence the indebtedness created by such borrowing. The bonds of
each issue shall constitute special obligations, and evidence a
special indebtedness, of the authority, which shall be a charge upon,
and payable, both as principal and interest, and as to any premiums
upon the redemption of any thereof, solely from, such revenues and
funds as are specified therein and in the proceedings for their
issuance, and shall not constitute obligations, nor evidence any
indebtedness, of the city, or of the State.


33103.  All such bonds shall recite upon their face, in substance,
that the bonds of each issue shall constitute special obligations,
and evidence a special indebtedness, of the authority, which shall be
a charge upon, and payable, both as principal and interest, and as
to any premiums upon the redemption of any thereof, solely from, such
revenues and funds as are specified therein and in the proceedings
for their issuance, and shall not constitute obligations, nor
evidence any indebtedness, of the city, or of the State, and shall
also recite upon their face that they are issued under this part,
which for that purpose may be designated by the short title provided
for in Section 32500.


33104.  An authority may issue such types of bonds as it determines,
including bonds on which the principal and interest are payable:
   (a) Exclusively from the income and revenue of the parking
facilities financed with the proceeds of the bonds, or with such
proceeds and financial assistance from the State or Federal
Governments or from any other source in aid of such projects.
   (b) Exclusively from the income and revenue of certain designated
parking facilities, whether or not such facilities were financed in
whole or in part with the proceeds of the bonds, and including income
or revenue from any future extension, betterment, or addition to any
such parking facilities thereafter to be established.
   (c) From its revenues generally.
   (d) From any contributions or other financial assistance from the
city, the State or Federal Governments, or from any other source.
   (e) From parking meter revenue of the city which may be
appropriated by the governing body of the city.
   (f) From any combination of these sources.


33105.  Bonds may be additionally secured by the pledging of,
placing a charge upon, or otherwise making available any parking
meter revenue. Until all bonds so secured have been paid, the
legislative body of a city may allocate, pledge, place a charge upon,
or otherwise make available its parking meter revenue or special
taxes for periods of years for the financing or operation of any
project authorized by this part and the payment of principal and
interest on all or any type of bond issued and outstanding pursuant
to this part.


33105.5.  Nothing in this part nor in the specification, in the
proceedings for the issuance of any bonds, of the sources of payment
thereof, shall preclude any of the following:
   (a) The payment of interest on or principal of any such bonds out
of sums received as premiums or accrued interest on the sale thereof.
   (b) The payment of principal of or interest on, or premiums on the
redemption of, any such bonds out of the proceeds of the sale of
refunding bonds issued for that purpose.
   (c) The payment of any interest on any such bonds accruing during,
and for not to exceed two years after, the period of the
construction of a project on account of which they were issued, or
for any other reasonably limited period, out of the proceeds of the
sale of such bonds.
   (d) The payment of any principal of, interest on, or premiums on
the redemption of, any such bonds by the purchasers thereof, or by
any entity other than the authority issuing the same in any case
where such purchasers or entity may have guaranteed such payment.
   (e) The application to the payment of any principal of, interest
on, or premiums on the redemption of, any such bonds of any funds
which the authority may lawfully so apply.



33106.  Except as limited by express provision of this part, each
authority, by resolution, or by contract, or other agreement with, or
for the benefit of, the bondholders, may determine all the terms and
conditions of each issue, series, or division of bonds and of their
sale and issuance, and all matters necessary or appropriate in
connection with the bonds.



33107.  An authority may provide for the aggregate principal amount,
date or dates, maturities, interest rate or rates, interest payment
dates, denominations and form of such bonds, and may provide for the
issuance thereof as serial bonds or sinking fund bonds, as payable to
bearer or to named payees, or as registered bonds, and for the
issuance thereof with or without coupons, and for the subsequent
registration of bonds, and for all other terms and conditions upon
which they shall be executed, issued, secured, sold, paid, redeemed,
funded, and refunded.



33107.5.  The authority may provide that any resolution or
resolutions adopted in connection with the authorization of any bonds
shall constitute a contract with the holders of such bonds, not
subject to repeal, and not subject to any modification other than to
the extent and in a manner provided in any such resolution.




33108.  Reference on the face of the bonds to any such resolution by
the date of its adoption, or to any such contract or other agreement
by the date of its execution, or the apparent date on the face
thereof, is sufficient to incorporate all of the provisions of the
contract or agreement into the body of the bonds and their
appurtenant coupons. Each taker and subsequent holder of the bonds or
coupons, whether the coupons are attached to or detached from the
bonds, has recourse to all of the provisions of the indenture and is
bound thereby.


33109.  The authority may provide for such covenants and agreements
on the part of the authority as it deems necessary or advisable for
the better security of any bonds.



33110.  The authority may provide for the making of a covenant
requiring the authority to pay punctually the principal and interest
on any bonds on the date or dates, at the place or places, and in the
manner mentioned in the bonds and coupons in accordance with their
terms.



33111.  The authority may provide for the making of a covenant
requiring the authority to continuously operate in an efficient and
economical manner any or all facilities and properties any revenues
of which are charged with the payment of any bonds in connection with
which such covenant is made.



33112.  The authority may provide for the making of a covenant
requiring the authority to make all repairs, renewals and
replacements necessary to the operation of any or all facilities and
properties any revenues of which are charged with the payment of any
bonds in connection with which such covenant is made, and to keep any
and all such facilities and property at all times in good repair.



33114.  The authority may provide for the making of a covenant
requiring the authority to pay and discharge from the funds available
for that purpose all lawful claims for labor, materials and
supplies, or other charges which if unpaid may become a lien or
charge upon all or any part of the revenue, any facilities or
properties, revenues charged with the payment of any bonds in
connection with which the covenant is made, or physical properties of
the project which may impair the security of the bonds.



33115.  The authority may provide for the making of a covenant which
limits, restricts, or prohibits the power of the authority to
mortgage or otherwise encumber, sell, lease, or dispose of any or all
facilities and properties, any revenues of which are charged with
the payment of any bonds in connection with which the covenant is
made, or to enter into any lease or agreement which might impair or
impede the operation of such facilities or properties, or any part
thereof, or might otherwise impair or impede the rights of
bondholders with respect to such revenues.



33116.  The authority may provide for the making of a covenant
requiring the authority to fix, prescribe and collect, with respect
to any or all properties, any revenues of which are charged with the
payment of any bonds in connection with which such covenant is made,
fees, tolls, rentals or other charges in connection with the services
and facilities furnished from any such properties operated by it,
and to fix and collect rentals or other charges for any such
properties leased by it to others for operation, sufficient, with
such parking meter revenues or other funds as may have been made
available for and charged with such payment, to pay the principal of
and interest on such bonds as they become due and payable, together
with all expenses of operation, maintenance and repair of such
facilities and properties, and with such additional sums as may be
required for any sinking fund, reserve fund or other special fund
provided for the further security of such bonds or as a depreciation
charge or other charge in connection with such facilities and
properties, and all other charges payable out of any revenues charged
with the payment of the bonds.
   The authority may also provide for the making of a covenant
requiring the fixing and prescribing by it and the collection by any
lessee or operator of any or all facilities and properties, any
revenues of which are charged with the payment of any bonds in
connection with which such covenant is made, of all fees, tolls,
rentals, or other charges in connection with the services and
facilities furnished by such lessee or operator, sufficient to assure
the payment by such lessee or operator to such authority of the
rentals or other charges payable by such lessee or operator to such
authority.



33117.  The authority may provide for the making of a covenant
requiring the authority to provide for the establishment and
maintenance of reserve funds, sinking funds, or other special funds
in the city treasury or special trust accounts in a bank or trust
company to insure payment, when due or payable, whether at maturity
or upon redemption, of the principal of and interest on any bonds,
including premiums, if any due, upon the redemption of any thereof,
or to insure the application of the proceeds of such bonds to the
purposes for which the same were issued, or for any other appropriate
purpose. Any money placed in any such reserve, sinking, or other
special fund or trust account shall constitute a trust fund and shall
be applied only to the purposes for which it was created.



33118.  The authority may provide for the making of a covenant
requiring it to apply the proceeds of the bonds in connection with
which such covenant is made, or any part thereof, to the acquisition
or construction of a specified facility, or other specified purpose.




33119.  The authority may provide for the making of a covenant
restricting the incurring of additional indebtedness payable in whole
or in part out of revenues or funds which are charged with the
payment of any bonds in connection with which such covenant is made.




33120.  The authority may provide for the making of a covenant
requiring it to carry insurance on any facilities or properties any
revenues of which are charged with the payment of any bonds in
connection with which such covenant is made, or any operations
incident thereto, specifying or limiting the kind, amount and
character of such insurance, and providing for the use and
disposition of the proceeds of any such insurance thereafter
collected.


33121.  The authority may provide for the terms and conditions upon
which any bonds may become or be declared due and payable prior to
maturity, upon the happening of any specified event of default, and
the terms and conditions upon which such declaration and its
consequences may be waived.



33122.  The authority may provide for the rights, limitations,
powers, and duties arising upon breach by the authority of any of the
covenants, conditions, or obligations contained in any resolution,
contract, or agreement.


33123.  The authority may provide for a procedure by which certain
specified terms and conditions of any resolution, contract, or
agreement may be subsequently amended or modified, or any provision
thereof waived, with the consent of the authority and the vote or
written assent of the holders of a specified principal amount of the
bonds issued and outstanding. Such provision may authorize meetings
of bondholders and specify the manner in which the consent of the
bondholders may be given. Such provision shall specifically state the
effect of such amendment, modification, or waiver upon the rights of
the holders of all of the bonds and interest coupons appertaining to
the bonds, whether attached to or detached from the bonds.




33124.  The provisions for such procedure may include an agreement
that bonds held by the authority, the city, or by any other person or
entity who or which the authority may determine to be so interested
in the matter as to make it proper, shall not be counted as
outstanding bonds, and that the holders thereof shall not be entitled
to vote or assent with respect to such amendment, modification or
waiver, but shall nevertheless be subject thereto.



33125.  The authority may provide for such other acts and matters as
it may deem to be necessary, convenient, or desirable to secure the
bonds or to make them more marketable.



33126.  The authority may designate a bank or trust company as a
trustee for the holders of bonds issued pursuant to this part, and
may authorize the trustee to act on behalf of the bondholders, and to
exercise and prosecute on their behalf the rights and remedies
available to them.



33127.  The authority may fix and determine the conditions upon
which any trustee shall receive, hold, or disburse any or all funds
coming into its hands pursuant to any resolution, contract, or
agreement.


33128.  The authority may prescribe the duties and powers of any
trustee respecting the payment of principal and interest on bonds,
the redemption of bonds, the registration and discharge from
registration of bonds, and the management of any sinking or other
fund provided as security for bonds, and with respect to any other
appropriate matter.



33129.  The authority may provide for the issuance of bonds in
series, and for the division of any issue into two or more divisions,
and may fix different maturities or dates of such bonds, different
rates of interest, or prescribe different terms and conditions for
the bonds of the several series or divisions. After having authorized
or issued bonds the authority may from time to time thereafter
authorize and issue other bonds, subject to any covenants it may have
made restricting the future issuance of bonds.



33130.  All bonds of the same authorized issue need not be of the
same kind or character, have the same security, or bear the same
interest rate, but the terms of the bonds shall in each case be
prescribed by the authority.


33133.  Bonds may be callable upon such terms, conditions, and
notice as the authority determines, and upon the payment of the
premium, if any, fixed by the authority in the proceedings for their
issuance. No bond shall be subject to call or redemption prior to its
fixed maturity date unless the right to exercise such call is
expressly stated on its face.



33134.  The authority may provide for the payment of the principal
and interest of bonds at any place within the State, or for the
payment or collection of such principal without the State, and in any
specified coin or currency of the United States.




33135.  Signatures on the bonds and interest coupons may be printed,
lithographed, or engraved facsimile, except that on the bonds, but
not on the interest coupons, the countersignature of the clerk or
other officer of the authority designated by it which shall be
manually affixed.



33136.  If any officer or representative whose signature or
countersignature appears upon the bonds or coupons ceases to be an
officer or representative before the delivery of the bonds or
coupons, his signature or countersignature is nevertheless valid and
of the same force and effect as if he had continued to hold his
office or position until the delivery of the bonds and coupons.



33137.  Bonds issued under this part may be serial or sinking fund
bonds. A bond by its terms shall not mature more than forty (40)
years from its own date. If any authorized issue is divided into two
or more series or divisions, the maximum maturity date shall be
calculated from the date on the face of each bond separately,
irrespective of the fact that different dates may be prescribed for
the bonds of each separate series or division of any authorized
issue.


33138.  The authority may sell bonds at a price below the par or
face value, provided that the discount on any bonds so sold shall not
exceed 8 percent of the par value thereof.
   The interest rate on the bonds shall not exceed 8 percent, payable
semiannually. The sale shall be conducted in compliance with Chapter
10 (commencing with Section 5800) of Division 6 of Title 1 of the
Government Code.



33139.  In determining the amount of bonds to be issued, the
authority may include an amount for the purpose of establishing a
reserve fund or funds for the security of the bonds.



33140.  The authority may provide that interest on bonds issued for
the acquisition, construction, or completion of any project may be
paid out of the proceeds of the sale of the bonds during the actual
construction of the project and for a period of not to exceed two
years after completion of actual construction, or for any other
reasonably limited period.



33141.  In the proceedings for the issuance of bonds, the authority
may provide that the principal of and interest on the bonds
constitute such charge upon the revenues of any project acquired,
constructed or completed from the proceeds of the bonds, or upon
other available and specified revenues or funds as may be provided
for in such proceedings.



33142.  Pending the actual issuance or delivery of bonds, the
authority may issue temporary or interim bonds, certificates, or
receipts of any denominations, with or without coupons, to be
exchanged for definitive bonds when ready for delivery.




33143.  The principal, interest, and income of all bonds issued
under this part are exempt from all taxation in this State, other
than gift, inheritance, and estate taxes.



33145.  The authority may provide for the issuance, sale, or
exchange of refunding bonds to redeem or retire any revenue bonds
issued by it. All provisions of this part applicable to the issuance
of bonds are applicable to refunding bonds and to their issuance,
sale or exchange. However, even if the alternative method provided
for in Section 32655 of submitting to the electors the question of
issuing bonds in a specific amount has been followed, without the
submission of the question of adopting the revenue bond method of
financing, no submission to the electors of the proposition of
issuing refunding bonds shall be required as a prerequisite to the
issuance of such refunding bonds; and if the proposition of adopting
the revenue bond method of financing has been submitted and carried,
it shall be full authority for the issuance of refunding bonds.



33146.  Refunding bonds may be issued in a principal amount
sufficient to provide funds for the payment of the bonds to be
refunded and all expenses incident to the calling, retiring, or
paying of the outstanding bonds and the issuance of the refunding
bonds. These expenses include:
   (a) The difference in amount between the par value of the
refunding bonds and any amount less than par for which the refunding
bonds are sold.
   (b) The amount of interest upon the refunding bonds from the date
of their sale to the date of payment of the bonds to be refunded or
to the date upon which the bonds to be refunded will be paid pursuant
to their call or pursuant to any agreement with the holders of such
bonds.
   (c) Any premium required to be paid to call or retire the
outstanding bonds.
   (d) The interest accruing on the outstanding bonds to the date of
their call or retirement.



33147.  Bonds issued pursuant to this part are negotiable
instruments.


33148.  An action to determine the validity of bonds may be brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
Part 2 of the Code of Civil Procedure.