SECTIONS 92510-92533 - California Statutes

EDUCATION CODE

SECTION 92510-92533

92510. The regents may enter into indentures providing for the
aggregate principal amount, date or dates, maturities, interest
rates, denominations, form, registration, transfer, and interchange
of any revenue bonds and coupons issued pursuant to this chapter, and
the terms and conditions on which the bonds shall be executed,
issued, secured, sold, paid, redeemed, funded, and refunded.
Reference on the face of the bonds to such indenture by its date of
adoption, or the apparent date on the face thereof, is sufficient to
incorporate all of the provisions of the indenture and of this
chapter 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 indentures and of this chapter, and
is bound thereby.

92511. An indenture pursuant to which bonds are issued may include
any and all such convenants and agreements on the part of the regents
as the regents deems necessary or advisable for the better security
of the bonds issued pursuant to the indenture.

92512. An indenture shall provide the means by which payments of
principal and interest of bonds shall be secured.

92513. An indenture may include a clause relating to the bonds
issued pursuant to the indenture requiring the regents to pay or
cause to be paid punctually the principal of all such bonds and the
interest on such bonds on the date or dates, or at the place or
places, and in the manner mentioned in such bonds and in the coupons
appertaining to the bonds in accordance with such indenture.

92514. The regents may include in an indenture such limitations as
to competitive projects, both as to location and comparative rentals,
as may be deemed necessary or desirable for the security of revenue
bonds issued pursuant to this chapter.

92515. The regents may also include in an indenture a covenant that
no project acquired, constructed, or completed from the proceeds of
revenue bonds issued by the regents shall be used without charge for
such use or that no facilities of any such project shall be furnished
free of charge to any person.

92516. An indenture may include a clause relating to the bonds
issued pursuant to the indenture, requiring the regents to operate
the project continuously, to the extent practicable under conditions
as they may from time to time exist, in an efficient and economical
manner.

92517. An indenture may include a clause relating to the bonds
issued pursuant to the indentures requiring the regents to make all
necessary repairs, renewals, and replacements to any project, and to
keep the project at all times in good repair, working order, and
condition.

92518. An indenture may include a clause relating to the bonds
issued pursuant to the indenture requiring the regents to preserve
and protect the security of the bonds and the rights of the holders
of the bonds and to warrant and defend such rights.

92519. An indenture may include a clause relating to the bonds
issued pursuant to the indenture requiring the regents to pay and
discharge, or cause to be paid and discharged, all lawful claims for
labor, materials, and supplies or other charges which, if unpaid,
might become a lien or charge upon the revenues, or any part of the
revenues, of any project acquired, constructed, or completed from the
proceeds of the sale of the bonds, or upon any physicial properties,
or which might impair the security of the bonds.

92520. An indenture may include a clause relating to the bonds
issued pursuant to the indenture which limits, restricts, or
prohibits any right, power, or privilege of the regents to mortgage
or otherwise encumber, sell, lease, or dispose of any improvements
constructed from the proceeds of the bonds, or to enter into any
lease or agreement which impairs or impedes the operation of a
project, or any part of a project, necessary to secure adequate
revenues or which otherwise impairs or impedes the rights of the
holders of the bonds with respect to such revenues.

92521. An indenture may include a clause relating to the bonds
issued pursuant to the indenture requiring the regents to fix,
prescribe, and collect rates, rentals, or other charges in connection
with the services and facilities furnished from the project
acquired, constructed, or purchased from part or all of the proceeds
of the bonds, sufficient to pay the principal of, and interest on,
the bonds as they become due and payable, together 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 charges in connection
with such project.

92522. An indenture may include a clause relating to the bonds
issued pursuant to the indenture requiring the regents to hold, or
cause to be held, in trust the revenues, or any part of revenues,
pledged to the payment of such bonds and the interest on such bonds,
or to any reserve or other fund created for the further protection of
the bonds, and to apply such revenues, or part of revenues, or cause
them to be applied only as provided in the indenture.

92523. An indenture may include a clause defining the power of the
regents in applying the proceeds of the sale of any issue of bonds
for the acquiring, constructing, or completing of any project or any
part of any project.

92524. An indenture may include a clause limiting the power of the
regents to issue additional bonds for the purpose of acquiring,
constructing, or completing any project or any part of any project.

92525. An indenture may include a clause requiring, specifying, or
limiting the kind, amount, and character of insurance to be
maintained by the regents on any project, or any part of any project,
and the use and disposition of the proceeds of any such insurance
thereafter collected.

92526. An indenture may include a clause providing the events of
default and the terms and conditions upon which any or all of the
bonds of the regents then or thereafter issued may become or be
declared due and payable prior to maturity, and the terms and
conditions upon which such declaration and its consequences may be
waived.

92527. An indenture may include a clause designating the rights,
limitations, powers, and duties arising upon breach by the regents of
any of the covenants, conditions, or obligations contained in any
indenture.

92528. An indenture may include a clause prescribing procedure by
which the terms and conditions of the indenture may be subsequently
amended or modified with the consent of the regents and the vote or
written assent of the holders of a specified principal amount or
specified proportion of the bonds issued and outstanding. Such clause
may provide for meetings of bondholders and for the manner in which
the consent of the bondholders may be given. The clause shall
specifically state the effect of such amendment or modification upon
the rights of the holders of all of the bonds and interest coupons
appertaining to the bonds, whether attached to the bonds or detached
from the bonds.

92529. With respect to any clause providing for the modification or
amendment of an indenture, the regents may agree that bonds held by
the regents or by the state or any political subdivision of the
state, including any public corporation, board, or agency of any
class or kind, shall not be counted as outstanding bonds, or be
entitled to vote or assent, but shall, nevertheless, be subject to
any such modification or amendment.

92530. An indenture may include a clause or clauses providing for
such other acts and matters as may be necessary or convenient or
desirable in order better to secure the bonds or to make the bonds
more marketable.

92531. The regents may provide in an indenture that the proceeds
from the sale of all revenue bonds authorized pursuant to this
chapter shall be paid directly to any bank or trust company
designated by the regents as the fiscal agent or depositary of the
regents, to be held in a separate account to be designated the
"construction fund" and to be disbursed in the manner and upon the
conditions provided in the indenture for any of the following:
(a) The acquisition, construction, and completion of the project,
including the payment of the cost of all surveys, preparation of
plans and specifications, and the payment of all architectural,
engineering, legal, and administrative costs.
(b) The payment of all costs and expenses of, and incident to, the
issuance and sale of bonds.
(c) The payment of interest due, or to become due, on the bonds
during the period of actual construction, and for such further period
as may be specified in the indenture for the issuance of the bonds
not exceeding two years after the period of construction.

92532. Moneys in any construction fund may be invested as the
regents in its sole discretion shall determine, subject only to such
limitations as may be provided in an indenture providing for the
issuance of revenue bonds.

92533. After all the revenue bonds shall have been fully paid and
discharged, or provision for their payment and discharge irrevocably
made, any surplus moneys in the construction fund shall, subject to
the limitations and restrictions in any indenture providing for the
issuance of the revenue bonds, become and be the property of the
regents, and be used by the regents for any lawful purpose.