SECTIONS 94190-94195 - California Statutes

EDUCATION CODE

SECTION 94190-94195

94190. (a) In addition to the foregoing powers, the authority shall
have power to accomplish both of the following:
(1) Upon application of the participating college or participating
nonprofit entity, to construct, acquire, or otherwise provide
projects for the use and benefit of the participating private
college, public college, or public university and the students,
faculty, and staff of that participating institution. The
participating college or participating nonprofit entity for which a
project is undertaken by the authority shall approve the plans,
specifications, and location of that project.
(2) To lease any project provided pursuant to this section to the
participating private college or participating nonprofit entity for
which that project is provided. When the liabilities of the authority
incurred for a project have been met and the bonds of the authority
issued therefor have been paid, or those liabilities and bonds have
otherwise been discharged, the authority shall transfer title to all
the real and personal property of that project vested in the
authority, to the participating college or participating nonprofit
entity in connection with which that project is then leased. However,
if at any time prior thereto a participating private college ceases
to offer educational facilities, then the title shall vest in the
State of California.
(b) Any lease of a project authorized by this section shall be a
general obligation of the lessee and may contain provisions, which
shall be a part of the contract with the holders of the bonds of the
authority issued for the project, as to all of the following:
(1) Pledging all or any part of the moneys, earnings, income, and
revenues derived by the lessee from the project or any part or parts
thereof, or other personal property of the lessee, to secure payments
required under the terms of that lease.
(2) The rates, rentals, fees, and other charges to be fixed and
collected by the lessee, the amounts to be raised in each year
thereby, and the use and disposition of that income and those moneys,
earnings, and revenues.
(3) The setting aside of reserves and the creation of special
funds and the regulation and disposition thereof.
(4) The procedure, if any, by which the terms of the lease may be
amended, the amount of bonds the holders of which must consent
thereto, and the manner in which that consent may be given.
(5) Vesting in a trustee or trustees the specified properties,
rights, powers, and duties as shall be deemed necessary or desirable
for the security of the holders of the bonds of the authority issued
for those projects.
(6) The obligations of the lessee with respect to the replacement,
reconstruction, maintenance, operation, repairs, and insurance of
that project.
(7) Defining the acts or omissions to act that constitute a
default in the obligations and duties of the lessee, and providing
for the rights and remedies of the authority and of its bondholders
in the event of default.
(8) Any other matters, of like or different character, that may be
deemed necessary or desirable for the security or protection of the
authority or the holders of its bonds.

94191. The authority also shall have power:
(a) To make loans to any participating private college or
participating nonprofit entity for the acquisition or construction of
projects in accordance with a loan agreement and in accordance with
plans and specifications that shall be subject to approval by the
authority. No loan shall exceed the total cost of the project and the
equipment therefor as determined by the authority. Each loan shall
be premised upon an agreement between the authority and the
participating private college or participating nonprofit entity as to
payment, security, maturity, redemption, interest, and other
appropriate matters.
(b) To make loans to any participating private college or
participating nonprofit entity to refund existing bonds, mortgages,
or advances or other obligations incurred, given, or made by the
private college or participating nonprofit entity for the acquisition
or construction of any projects.

94192. For the purpose of obtaining and securing loans under
Section 94191, every participating private college or participating
nonprofit entity shall, notwithstanding the provisions of any other
law, have power to mortgage and pledge any of its real or personal
property, and to pledge any of its income from whatever source to
repay the principal of and interest on any loan made to it by the
authority or to pay the interest on and principal and redemption
premium, if any, of any note, bond, or other evidence of indebtedness
evidencing the debt created by that loan; provided that the
foregoing shall not be construed to authorize actions in conflict
with specific legislation, trusts, endowment, or other agreements
relating to specific properties or funds.

94193. Moneys of the authority received from any participating
private college or participating nonprofit entity in payment of any
sum due to the authority pursuant to the terms of any loan or other
agreement or any bond, note, or other evidence of indebtedness, shall
be deposited in an account in which only moneys received from
participating private colleges or participating nonprofit entities
shall be deposited, and shall be kept separate and apart from and not
commingled with any other moneys of the authority. Moneys deposited
in that account shall be paid out on checks signed by the chairperson
of the authority or by a person or persons authorized by the
authority.

94194. (a) Whenever the authority under Section 94190 undertakes to
construct, acquire or otherwise provide a project and to lease the
same to a private college, the lessee shall be responsible for the
direct operation and maintenance costs of such project and, in
addition, shall be responsible for the overall supervision of each
project, for the overhead and general administrative costs of the
lessee which are incurred because of such project and for the
integration of each project operation into the lessee's educational
program.
(b) Whenever the authority under Section 94191 makes loans for the
construction of a project, the private college at which such project
is located shall be responsible for the direct operation and
maintenance costs of such project and, in addition, shall be
responsible for the overall supervision of each project, for the
overhead and general administrative costs of the private college
which are incurred because of such project and for the integration of
each project operation into the institution's educational program.

94195. Any pledge of moneys, earnings, income, or revenues
authorized with respect to participating private colleges or
participating nonprofit entities, pursuant to this chapter, shall be
valid and binding from the time when the pledge is made. The moneys,
earnings, income, or revenues so pledged and thereafter received by
the pledgor shall immediately be subject to the lien of that pledge
without any physical delivery thereof or further act. The lien of
that pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
pledgor irrespective of whether the parties have notice thereof. No
instrument by which a pledge is created need be filed or recorded in
any manner.