SECTIONS 15820.40-15820.41 - California Statutes

GOVERNMENT CODE

SECTION 15820.40-15820.41

15820.40. (a) The board may issue certificates pursuant to Chapter
4 (commencing with Section 15821) or revenue bonds, negotiable notes,
or negotiable bond anticipation notes pursuant to Chapter 5
(commencing with Section 15830) to finance the cost of construction
or renovation and the equipping of the public buildings or facilities
authorized by this chapter.
(b) The revenues, rentals, or receipts from the public buildings
or facilities and equipment authorized by this chapter shall be
pledged to the payment of the principal of, and the interest on, the
certificates, revenue bonds, notes, or anticipation notes issued to
finance the construction or renovation and the equipping of those
public buildings or facilities.
(c) No certificates, revenue bonds, notes, or anticipation notes
shall be issued, and no construction or renovation or equipping for
any public building or facility authorized by this chapter shall be
commenced or purchased, unless the Legislature, by statute,
authorizes the total amount of certificates, revenue bonds, notes, or
anticipation notes that may be used to finance that public building
or facility.

15820.41. The board may contract for a project authorized by the
Legislature before issuing certificates, revenue bonds, notes, or
bond anticipation notes pursuant to Section 15820.40 if any segment
of higher education provides from any lawful source temporary
construction financing to meet contract payments for the project or
if the board obtains a loan from the General Fund. Any loan from the
General Fund shall be specifically authorized by the Legislature and
shall not exceed the amount authorized by the Legislature. The loan
amount shall be repaid by the board to the General Fund together with
interest in the amount that those moneys would have earned in the
Pooled Money Investment Account.
It is the intent of this section to reduce the cost of the
projects and time between the authorization of capital outlay
projects by the Legislature and the availability of those projects
for student and faculty use.