SECTIONS 63049.67-63049.68 - California Statutes

GOVERNMENT CODE

SECTION 63049.67-63049.68

63049.67. (a) Notwithstanding any other provision of this division,
a financing of emergency apportionments upon the request of a school
district pursuant to Article 2.7 (commencing with Section 41329.50)
of Chapter 3 of Part 24 of Division 3 of Title 2 of the Education
Code, is deemed to be in the public interest and eligible for
financing by the bank. Article 3 (commencing with Section 63040),
Article 4 (commencing with Section 63042) and Article 5 (commencing
with Section 63043) do not apply to the financing provided by the
bank in connection with an emergency apportionment.
(b) The bank may issue bonds pursuant to Chapter 5 (commencing
with Section 63070) and provide the proceeds to a school district
pursuant to a lease agreement. The proceeds may be used as an
emergency apportionment, to reimburse the interim emergency
apportionment from the General Fund authorized pursuant to
subdivision (b) of Section 41329.52 of the Education Code, or to
refund bonds previously issued under this section. Bond proceeds may
also be used to fund necessary reserves, capitalized interest, credit
enhancement costs, and costs of issuance.
(c) Bonds issued under this article are not deemed to constitute a
debt or liability of the state or of any political subdivision of
the state, other than a limited obligation of the bank, or a pledge
of the faith and credit of the state or of any political subdivision.
All bonds issued under this article shall contain on the face of the
bonds a statement to the same effect.
(d) Any fund or account established in connection with the bonds
shall be established outside of the centralized treasury system.
Notwithstanding any other law, the bank shall select the financing
team and the trustee for the bonds, and the trustee shall be a
corporation or banking association authorized to exercise corporate
trust powers.
(e) Pursuant to Section 41329.55 of the Education Code, a school
district other than the Compton Community College District shall
instruct the Controller to repay the lease from moneys in the State
School Fund designated for apportionment to the school district.
Pursuant to Section 41329.55, if the school district is the Compton
Community College District, the Controller shall be instructed to
repay the lease from moneys in Section B of the State School Fund.
Any amounts necessary to make this repayment shall be drawn from the
total statewide funding available for community college apportionment
consisting of funds in Section B of the State School Fund.
Thereafter the Controller shall transfer to Section B of the State
School Fund, either in a single or multiple transfers, an amount
equal to the total repayment, which amount shall be transferred from
the amount designated for apportionment to the Compton Community
College District from the State School Fund. If these transfers from
the district prove inadequate to repay any repayments for any reason,
the Compton Community College District is required to use any
revenue sources available to it for transfer and repayment purposes.
(f) Notwithstanding any other law, as long as any bonds issued
pursuant to this section are outstanding, the following requirements
apply:
(1) The school district for which the bonds were issued is not
eligible to be a debtor in a case under Chapter 9 of the United
States Bankruptcy Code, as it may be amended from time to time, and
no governmental officer or organization is or may be empowered to
authorize the school district to be a debtor under that chapter.
(2) It is the intent of the Legislature that the Legislature
should not in the future abolish the Compton Community College
District or take any action that would prevent the Compton Community
College from entering into or performing binding agreements or
invalidate any prior binding agreements of the Compton Community
College District, where invalidation may have a material adverse
effect on the bonds issued pursuant to this section.
(3) The Compton Community College District shall not be
reorganized or merged with another community college district unless
all of the following apply:
(A) The successor district becomes by operation of law the owner
of all property previously owned by the Compton Community College
District.
(B) Any agreement entered into by the Compton Community College
District in connection with bonds issued pursuant to this section are
assumed by the successor district.
(C) The apportionment authorized by subdivision (e) remains in
effect.
(D) Receipt by the bank of an opinion of bond counsel that the
bonds issued for the Compton Community College District will remain
tax exempt following the reorganization or merger.
(g) Nothing in this section limits the authority of the
Legislature to abolish the Compton Community College District when
bonds issued for that district are no longer outstanding. Further,
the Legislature may provide for the redemption or defeasance of the
bonds at any time so that no bonds are outstanding. If the
Legislature provides for the redemption or defeasance of the bonds
issued for the Compton Community College District in order to abolish
that district, it is the intent of the Legislature that the funds
required for the redemption or defeasance should be appropriated from
Section B of the State School Fund.
(h) The bank may enter into contracts or agreements with banks,
insurers, or other financial institutions or parties that it
determines are necessary or desirable to improve the security and
marketability of, or to manage interest rates or other risks
associated with, the bonds issued pursuant to this section. The bank
may pledge apportionments made by the Controller directly to the bond
trustee pursuant to Section 41329.55 of the Education Code as
security for repayment of any obligation owed to a bank, insurer, or
other financial institution pursuant to this subdivision.

63049.68. The State of California pledges that (a) the state will
not alter the directive to the Controller to make apportionments to
the bond trustee of moneys in the State School Fund from that set
forth in Section 41329.55 of the Education Code, and (b) the state
will not amend or repeal subdivision (f) of Section 63049.67, in each
case in any manner that would materially impair the security or
other interests of holders of any bonds issued pursuant to this
article. The bank is authorized to include this pledge in the bonds,
or other documents entered into in connection with the bonds, as a
covenant for the benefit of the bondholders.