SECTIONS 26360-26362 - California Statutes

GOVERNMENT CODE

SECTION 26360-26362

26360. The board shall fix the rental rates, fees and all other
charges to be made for all facilities furnished, acquired,
constructed or completed under this chapter for the use thereof by
any persons utilizing such facilities. Subject to such contractual
obligations as may be entered into by the board and the holders of
the revenue bonds issued under this chapter, the board is authorized
to change such rental rates, charges and fees from time to time as
conditions warrant. All rental rates, fees and charges shall be at
all times fixed to yield annual revenue equal to annual operating and
maintenance expenses including insurance costs and all redemption
payments and interest charges on the revenue bonds at any time issued
and outstanding in connection with the project of which such
facilities are a part as the same become due. The bond redemption and
interest payments shall constitute a first, direct and exclusive
charge and lien on all such rentals, fees and charges and other
revenues and interest thereon and sinking funds created therefrom
received from the use and operation of the project for the
acquisition, construction or completion of which such revenue bonds
were issued, and all such rentals, fees and charges and other
revenues, together with the interest thereon shall constitute a trust
fund for the security and payment of such bonds and shall not be
used or pledged for any other purpose so long as such bonds, or any
of them, are outstanding and unpaid. The board may provide that the
rental rates, fees and charges established are minimum rental rates,
fees and charges and subject to increase or decrease in accordance
only with the terms of the indenture under which the revenue bonds
were issued.

26361. The board may lease all or any portion or portions of the
project, or of any of the lands, improvements, concessions,
facilities or other property comprising a part of the project. In the
event that the project consists of any of the public improvements
authorized by subdivisions b and c of Section 26301 of the Government
Code, the term of any lease shall not exceed 60 years and for
projects consisting of other public improvements authorized by said
Section 26301 the term of any lease shall not exceed 10 years. Such
leases shall be made only after advertising for and accepting bids in
the manner provided for the leasing of real property belonging to
the county by Article 8 (commencing with Section 25520), Chapter 5,
Part 2, Division 2, Title 3, of the Government Code.

26362. Every contract entered into by the board for the use of any
project or part thereof, acquired, constructed or completed from the
proceeds of the sale of revenue bonds shall incorporate by reference
the provisions of any indenture pursuant to which the bonds were
issued. Every such contract or lease shall also refer to the
provisions of such indenture with respect to the obligation of the
board to fix rental fees and charges to meet the payments provided
for in such indenture and in the proceedings for the issuance of
revenue bonds and all payments required to be made to the board under
such contract or lease shall be subject to increase if and when the
board is required by such indenture to increase rates or charges to
meet its obligations under such indenture providing for the issuance
of bonds.