SECTIONS 54773-54783 - California Statutes

GOVERNMENT CODE

SECTION 54773-54783

54773. This chapter shall be known and may be cited as the Teeter
Plan Bond Law of 1994.

54773.1. The Legislature finds and declares all of the following:
(a) There is a need within the state to finance the alternative
method of distribution of tax levies and collections of tax sale
proceeds authorized pursuant to Sections 4701 to 4717, inclusive, of
the Revenue and Taxation Code.
(b) That it is the intent of the Legislature to assist local
agencies in obtaining sources of financing for these purposes.

54774. The definitions in this section shall govern the
construction and interpretation of this chapter:
(a) "Bond purchase agreement" means a contractual agreement
executed between the county and one or more investment bankers that
underwrite the bonds.
(b) "Bonds" means evidences of indebtedness, including, but not
limited to, bonds, notes, commercial paper, floating rate and
variable maturity securities, and certificates of participation.
(c) "County" means any county or city and county of this state
which has adopted an alternative method of distribution of tax levies
and collections of tax sale proceeds authorized pursuant to Sections
4701 to 4717, inclusive, of the Revenue and Taxation Code.
(d) "Indenture" means any indenture, trust agreement, or similar
document entered into by the county and a trustee or other fiduciary
with respect to the bonds.
(e) "Tax revenues" means all current or delinquent taxes (and, if
a county has made an election under Section 4702.5 of the Revenue and
Taxation Code, assessments), redemption amounts, and delinquent
penalties for which the county has advanced funds pursuant to
Sections 4701 to 4717, inclusive, of the Revenue and Taxation Code.

54775. This chapter does not limit any other law and shall be
deemed to provide a complete and supplemental method for exercising
the powers authorized by this chapter, and shall be deemed as being
supplemental to the powers conferred by other applicable laws. The
issuance of bonds, financing, or refinancing under this chapter need
not comply with the requirements of any other state laws applicable
to the issuance of bonds.

54776. The county may, from time to time, issue its bonds in an
aggregate principal amount the county determines necessary to provide
sufficient funds for purposes of advancing moneys representing
uncollected taxes in accordance with Section 4705 of the Revenue and
Taxation Code, provided that the aggregate amount of all the bonds
issued in any fiscal year, together with interest thereon, shall not
exceed the tax revenues attributable to the fiscal year in which the
bonds are issued, except that in the case of a county wishing to
finance the initial apportionment pursuant to Section 4713 of the
Revenue and Taxation Code, the aggregate principal amount of bonds
that may be issued for that purpose, together with interest thereon,
shall not exceed the aggregate amount of those initial apportionments
plus any then-existing delinquent penalties.

54777. (a) The bonds may be issued as serial bonds or as term
bonds, in one or more series. The bonds shall be authorized by
resolution of the county approved by a majority vote of its board of
supervisors, and shall, as provided by the resolution or by the terms
of an indenture pursuant to which the bonds are issued, bear the
date of issuance; the date of maturity not exceeding seven years from
their date of issuance; the rate of interest, either fixed or
variable, and if variable, not in excess of the maximum rate of
interest specified therein; be in the form provided; be in registered
form; be payable in lawful money of the United States at the place
or places provided within or without the State of California; and be
subject to the terms of redemption provided.
(b) The bonds shall be sold by the county at the time and in the
manner set out in the county's resolution. The sale may be a public
or private sale, and for the price or prices, and on terms and
conditions, as the county determines proper. Pending preparation of
the definitive bonds, the county may issue interim receipts,
certificates, or temporary bonds that shall be exchanged for
definitive bonds.
(c) The bonds shall be repaid from tax revenues and any other
legally available funds of the county.

54778. Any resolution authorizing any bond or any issue of bonds
may contain the following provisions, which shall be a part of the
contract with the holders of the bonds to be authorized.
(a) Provisions pledging the tax revenues and any other legally
available funds of the county to secure the payment of the bonds.
(b) Provisions setting aside reserves or sinking funds, and the
regulation and disposition thereof.
(c) Limitations on the purpose to which the proceeds of any issue
of bonds may be applied, and pledging the proceeds to secure the
payment of the bonds.
(d) Limitations on the issuance of additional bonds, the terms on
which additional bonds may be issued and secured, and the refunding
of outstanding bonds.
(e) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
(f) Definitions of acts or omissions to act that constitute a
default in the duties of the county to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.

54779. The county may, out of any funds available therefor,
purchase its bonds. The county may hold, pledge, cancel, or resell
the bonds, subject to, and in accordance with, agreements with
bondholders.

54780. Any bonds issued under this chapter may be secured by an
indenture between the county and a corporate trustee or trustees,
which may include any trust company or bank having the power of a
trust company within or without the State of California.
(a) The indenture or the resolution providing for the issuance of
the bonds may pledge or assign the tax revenues to be received. The
indenture or resolution providing for the issuance of the bonds may
contain provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not
in violation of law, including provisions specifically authorized to
be included in any resolution or resolutions of the county
authorizing bonds.
(b) Any bank or trust company doing business under the laws of the
State of California, which may act as a depository of the proceeds
of bonds or of tax revenues or other moneys, shall furnish
indemnifying bonds or pledge securities when required by the county.
(c) The indenture may set forth the rights and remedies of the
bondholders and of the trustee or trustees, and may restrict the
individual right of action of bondholders. In addition, any indenture
or resolution may contain other provisions the county determines to
be reasonable and proper for the security of the bondholders.

54781. (a) The county may issue bonds for the purpose of refunding
any bonds then outstanding, including the payment of any redemption
premium thereon and any interest accrued, or to accrue, on their
earliest or any subsequent date of redemption, purchase or maturity
of these bonds. The limitations of Section 54776, as to the aggregate
principal amount of bonds that may be issued in any fiscal year,
shall not apply to bonds issued under this section.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may be applied to the purchase or retirement at
maturity or redemption of those outstanding bonds either on their
earlier or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending this application,
be placed in escrow to be applied to the purchase or retirement at
maturity or redemption of those outstanding bonds on the date as may
be determined by the county.
(c) Pending the foregoing use, the escrowed proceeds may be
invested and reinvested in obligations of, or guaranteed by, the
United States, or in certificates of deposit or time deposits secured
by obligations of, or guaranteed by, the United States, maturing at
the time or times appropriate to assure prompt payment of the
principal, interest, and redemption premium, if any, of the
outstanding bonds to be refunded. The interest, income and profits,
if any, earned or realized on the investment may also be applied to
the payment of the outstanding bonds to be refunded. After the terms
of the escrow have been fully satisfied and carried out, any balance
of the proceeds and interest, income and profits, if any, earned or
realized on the investments thereof, shall be returned to the county.

54782. Bonds issued by the county are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, executors, administrators,
trustees and other fiduciaries, for state school funds and for any
funds which may be invested in county, municipal or school district
bonds. The bonds are securities that may legally be deposited with,
and received by, any state or municipal officer or agency or
political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now, or may hereafter
be, authorized by law, including deposits to secure public funds.

54783. Interest earned on any bond issued by the county shall at
all times be free from state personal income tax and corporate income
or franchise tax.