SECTIONS 53500-53505 - California Statutes

GOVERNMENT CODE

SECTION 53500-53505

53500. As used in this article:
(a) "Local agency" means county, city, city and county, public
district, or other public or municipal corporation.
(b) "General obligation bonds" means bonds, warrants, notes or
other evidence of indebtedness of a local agency payable, both
principal and interest, from the proceeds of ad valorem taxes or ad
valorem assessments which may be levied without limitation as to rate
or amount upon property in the local agency subject to taxation or
assessment.
(c) "Legislative body" means the legislative body of the local
agency as defined in Section 53000.
(d) "Revenue-producing facility" means an improvement, works,
system or facility furnishing or providing services or products for
which the local agency is authorized to impose a charge.
(e) "Pledge" means pledge, assign, place a charge upon and place a
lien upon.

53501. This article applies to all local agencies which have the
power to issue general obligation bonds to acquire, construct or
finance a revenue-producing facility.

53502. In any ordinance, resolution, order or indenture providing
for the issuance of general obligation bonds of a local agency to
provide funds for the acquisition, construction or financing of a
revenue producing facility or any addition to, or extension or
improvement of a revenue-producing facility, the legislative body of
the local agency may pledge all or any part of the revenues of such
facility to the payment or security of such general obligation bonds
and the interest thereon in such manner and upon such terms as the
legislative body may deem advisable.

53503. In connection with such pledge the legislative body may
provide in such ordinance, resolution, order or indenture such
covenants, promises, restrictions and provisions as it may deem
necessary or desirable including, but not limited to, covenants,
promises, restrictions and provisions relating to the use of bond
proceeds, the maintenance, operation and preservation of such
facility, the rates and charges to be established and collected for
the services or products furnished or provided by such facility, the
incurring of additional indebtedness payable from such revenues, and
the establishment, maintenance and use of reserve funds, sinking
funds, interest and redemption funds, maintenance and operation funds
and other special funds for the payment or security of the bonds and
the interest thereon. In connection with such pledge and in
connection with such covenants, promises, restrictions and provisions
the legislative body shall have, but shall not be limited to, the
powers specified in the Revenue Bond Law of 1941 (Chapter 6 of this
part).

53504. The pledge and the payment and security provisions
authorized by this article shall be in addition to, and not in
derogation of, any provisions permitted or required by law, charter
or the Constitution of the State of California relating to payment of
general obligation bonds from the proceeds of ad valorem taxes or ad
valorem assessments and relating to the levy and collection of such
taxes or assessments.

53505. If the legislative body intends to exercise the powers
granted by this article it shall make a statement of such intention
in any ordinance, resolution or order calling or providing for an
election to authorize the general obligation bonds for a revenue
producing facility. Such statement may be general only or it may give
such detail as the legislative body may deem proper. If any such
statement is made, the ordinance, resolution, order or indenture
providing for the issuance of such bonds shall be substantially in
accord with such statement.