SECTIONS 17200-17213 - California Statutes

GOVERNMENT CODE

SECTION 17200-17213

17200. All provisions of this chapter referring to registered
warrants are applicable to "reimbursement warrants" and "refunding
warrants," unless the context otherwise requires.

17201. The California Victim Compensation and Government Claims
Board may make rules and regulations governing the issuance and sale
of registered warrants.

17202. All registered warrants issued by the state are legal
investments for all:
(a) Trust funds.
(b) Funds of all insurers.
(c) Funds of savings and loan associations.
(d) Funds of all banks, including any legal combination of
commercial banks, savings banks and trust companies.
(e) Funds of all counties, municipal corporations, districts,
public corporations, political subdivisions, or state agencies.

17203. Such registered warrants are acceptable and may be used as
security for the faithful performance of any public or private trust
or obligation or for the performance of any act, including the use of
such registered warrants by banks and savings and loan associations
as security for deposits of funds of any county, municipal or public
corporation, district, political subdivision, or state agency.

17204. Any State agency that is authorized to invest funds in the
treasury in securities which are legal investments for savings banks
may invest the funds in registered warrants of the State.

17205. Notwithstanding any provision of the Uniform Commercial
Code, all registered warrants are negotiable instruments.

17206. Whenever a registered warrant is issued for the purpose of
making an interdepartmental payment or in error the State agency
having legal ownership of the warrant may present it to the
Controller for cancellation and credit to the fund on which it was
drawn. The warrant shall be accompanied by a report in writing
requesting the cancellation, explaining the reason for the request
and specifying the proper appropriation to be credited with the
amount of the warrant.

17207. After verification of the proper appropriation to be
credited, the Controller shall cancel the warrant and credit the
amount to the proper fund or appropriation in the same manner as
other money paid into the State treasury.

17208. Whenever such a registered warrant is canceled the
Controller shall so notify the Treasurer in writing, specifying the
number, date, amount, to whom drawn, fund on which drawn and date of
cancellation.

17209. Whenever the Controller deems that it will increase the
salability or the price of registered warrants to obtain, prior to or
after sale, a legal opinion as to the validity of the warrants from
attorneys other than the Attorney General, the Controller may obtain
a legal opinion.

17210. Registered warrants shall be paid by the Treasurer in
conformity with law.

17211. Registered warrants described in subdivisions (b) and (c) of
Section 17212 issued in connection with any credit enhancement or
liquidity agreement (including in the form of a letter of credit,
standby purchase agreement, liquidity facility, or other similar
arrangement) entered into by the state to secure or support any
reimbursement warrants or refunding warrants issued pursuant to this
chapter shall be based upon the same claims, and shall have the same
priority as to payment from unapplied money in the General Fund, as
the reimbursement warrants or refunding warrants paid with funds
disbursed under or in connection with the credit enhancement or
liquidity agreement. These warrants shall be issued and registered in
the amounts requested by the provider of the credit enhancement or
liquidity agreement.

17212. (a) Notwithstanding Section 17222, if at any time it is
necessary to register warrants pursuant to this chapter for the
payment of principal of or interest on notes issued pursuant to
Section 17302, the warrants shall bear interest at either the fixed
or variable interest rate specified in the notes as the interest rate
for that warrant or, if no rate is set forth, the fixed or variable
interest rate borne by the notes. In both cases, the interest rate on
those warrants shall not exceed 12 percent per annum.
(b) Notwithstanding Section 17222, if at any time it is necessary
to register warrants pursuant to this chapter for the payment of any
obligations of the state under any credit enhancement or liquidity
agreement, including in the form of a letter of credit, standby
purchase agreement, reimbursement agreement, liquidity facility, or
other similar arrangement, authorized pursuant to Section 5922, the
warrants shall bear interest at the fixed or variable rate specified
in the credit enhancement or liquidity agreement as the interest rate
for those warrants. Those registered warrants may provide for
periodic payment of interest thereon prior to redemption.
(c) Notwithstanding Section 17222, if at any time it is necessary
to register warrants pursuant to this chapter for the payment of any
periodic interest payment on registered warrants described in
subdivision (b), the warrants shall bear interest at the fixed or
variable rate specified in the credit enhancement or liquidity
agreement as the interest rate for those warrants and shall be
payable only upon redemption of the warrants.
(d) Notwithstanding subdivisions (b) and (c), in no case shall the
total sum of interest payments under the credit enhancement or
liquidity agreement and on any warrants described in subdivisions (b)
and (c) exceed the amount of the appropriation pursuant to law for
the payment of interest under the credit enhancement or liquidity
agreement.

17213. Notwithstanding any other provision of law, the Controller
is the agent for sale for registered warrants, reimbursement
warrants, and refunding warrants issued pursuant to this chapter.