SECTIONS 63070-63087 - California Statutes

GOVERNMENT CODE

SECTION 63070-63087

63070. (a) The bank may, from time to time, issue its revenue bonds
in a principal amount that the bank shall determine to be necessary
to provide sufficient funds for its purposes, which may include, but
shall not be limited to, providing funds for the payment of costs of
a project, for the purchase of bonds of a special purpose trust or a
sponsor, payment of interest on bonds of the bank or of a special
purpose trust, establishment of reserves to secure bonds, refunding
previously issued bonds or refunding bonds of the bank, special
purpose trust, or a sponsor, and payment of other expenditures of the
bank or special purpose trust incident to issuance of bonds or
refunding bonds of the bank.
(b) The bank, by private sale pursuant to a bond purchase
agreement, may purchase the bonds of any local sponsor or of any
special purpose trust that are issued pursuant to any other provision
of applicable law, and may be secured with any funds, moneys, or
revenues that are legally available.
(c) The bank may also issue bonds or authorize a special purpose
trust to issue bonds for the purpose of making loans to a sponsor to
be used by a sponsor to pay for the cost of a project, and that loan
may be secured with any funds, moneys, or revenues that are legally
available, including, but not limited to, any legally available funds
or moneys that are due or payable to the sponsor by reason of any
grant, allocation, or appropriation of the state or agencies thereof,
to the extent that the Controller shall be the custodian at any time
of these funds or moneys, and any legally available funds or moneys
that are or will be due or payable to any sponsor, the bank, or the
state or the agencies thereof by reason of any grant, allocation,
apportionment, or appropriation of the federal government or agencies
thereof.

63071. (a) Notwithstanding any other provision of law, but
consistent with Sections 1 and 18 of Article XVI of the California
Constitution, a sponsor may issue bonds for purchase by the bank
pursuant to a bond purchase agreement. The bank may issue bonds or
authorize a special purpose trust to issue bonds. These bonds may be
issued pursuant to the charter of any city or any city and county
that authorized the issuance of these bonds as a sponsor and may also
be issued by any sponsor pursuant to the Revenue Bond Law of 1941
(Chapter 6 (commencing with Section 54300) of Division 2 of Title 5)
to pay the costs and expenses pursuant to this title, subject to the
following conditions:
(1) With the prior approval of the bank, the sponsor may sell
these bonds in any manner as it may determine, either by private sale
or by means of competitive bid.
(2) Notwithstanding Section 54418, the bonds may be sold at a
discount at any rate as the bank and sponsor shall determine.
(3) Notwithstanding Section 54402, the bonds shall bear interest
at any rate and be payable at any time as the sponsor shall determine
with the consent of the bank.
(b) The total amount of bonds issued to finance public development
facilities that may be outstanding at any one time under this
chapter shall not exceed five billion dollars ($5,000,000,000). The
total amount of rate reduction bonds that may be outstanding at any
one time under this chapter shall not exceed ten billion dollars
($10,000,000,000).
(c) Bonds for which moneys or securities have been deposited in
trust, in amounts necessary to pay or redeem the principal, interest,
and any redemption premium thereon, shall be deemed not to be
outstanding for purposes of this section.

63072. (a) The bank may give final approval for the issuance of the
bonds or of the authorization of a special purpose trust upon terms
it deems necessary or desirable.
(b) The executive director may establish the terms and conditions
for the issuance of the bonds or of the authorization of a special
purpose trust and take any other action necessary or desirable for
the issuance of the bonds or of a special purpose trust authorized by
the bank.
(c) Any action under this section shall be at the discretion of
the bank.

63073. The Treasurer, the Governor, or the Lieutenant Governor is
an elected representative of the state authorized to fulfill the
public approval requirement of Section 147(f) of Title 26 of the
Internal Revenue Code (26 U.S.C.A. Sec. 147(f)), including subsequent
amendments thereto, or its successor provision, for the issuance of
tax-exempt bonds issued by the bank, a special purpose trust, or a
sponsor pursuant to this chapter.

63074. (a) Bonds may be authorized to finance a single project for
a single sponsor or a participating party, a series of projects for a
single sponsor or a participating party, a single project for
several sponsors or participating parties, or several projects for
several sponsors or participating parties.
(b) Except as otherwise expressly provided by the bank, every
issue of its bonds shall be payable from any revenues or other moneys
of the bank available therefor and not otherwise pledged. These
revenues or moneys may include the proceeds of additional bonds,
subject only to any agreements with the holders of particular bonds
pledging any particular revenues or moneys. Notwithstanding that the
bonds may be payable from a special fund, these bonds shall be deemed
to be negotiable instruments for all purposes.
(c) Subject to the limitations in Section 63071, bonds may be
issued in one or more series, may be issued as serial bonds or as
term bonds or as a combination thereof. The bonds shall be authorized
by resolution of the bank and shall, as provided by the resolution,
bear the date of issuance, the time of maturity, which shall not
exceed 50 years from the date of issuance, bear the rate or rates of
interest, be payable at the time or times provided, be in the
denominations provided, be in the form or forms provided, carry the
registration privileges provided, be executed in the manner provided,
be payable in lawful money of the United States, or other designated
currency, at the place or places provided, and be subject to any
terms of redemption provided therein.
(d) Sale of the bonds of the bank or of a special purpose trust
shall be coordinated by the Treasurer in accordance with Section
5702. The Treasurer shall sell the bonds within 90 days of receiving
a certified copy of the resolution authorizing the sale of bonds,
unless the board adopts a resolution extending the 90-day period.
(e) The sale may be a public or private sale, and for any price or
prices, and on any terms and conditions, as the bank determines
proper, after giving due consideration to the recommendations of any
special purpose trust and any sponsor to be assisted from the
proceeds of the bonds. Pending preparation of definitive bonds, the
Treasurer may issue interim receipts, certificates, or temporary
bonds that shall be exchanged for definitive bonds.

63075. Any resolution authorizing any bonds or the authorization of
a special purpose trust or any issue of bonds of the bank or a
special purpose trust 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 full faith and credit of the bank, or
pledging all or any part of the revenues of any project, or any
revenue-producing contract or contracts made by the bank with any
sponsor, or any other moneys of the bank, to secure the payment of
the bonds or of any particular issue of bonds, subject to those
agreements with bondholders as may then exist and consistent with
Sections 1 and 18 of Article XVI of the California Constitution.
(b) Provisions setting out the rentals, fees, purchase payments,
loan repayments, and other charges, and the amounts to be raised in
each year thereby, and the use and disposition of the revenues.
(c) Provisions setting aside reserves or sinking funds, or
providing for the use of subordinated classes of bonds by the bank or
a special purpose trust, and the regulation and disposition thereof.
(d) Limitations on the issuance of additional bonds, the terms
upon 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) Limitations on the bank's expenditures for operation and
administration, or other expenses.
(g) Definitions of acts or omissions to act that constitute a
default in the duties of the bank to holders of its obligations, and
providing the rights and remedies of the holders in the event of a
default.
(h) The mortgaging of any project and the site thereof for the
purpose of securing the interests of the bondholders.
(i) The mortgaging of land, improvements, or other assets owned by
a sponsor or participating party for the purpose of securing the
interests of the bondholders.

63076. Neither the officers of the bank nor any person executing
the bonds of the bank or a special purpose trust shall be personally
liable for the bonds or be subject to any personal liability or
accountability by reason of the issuance thereof.

63077. The bank, a special purpose trust, or any sponsor or
participating party may, out of any funds available therefor,
purchase their respective bonds. The bank and a special purpose trust
may hold, pledge, cancel, or resell their bonds, subject to and in
accordance with agreements with bondholders.

63078. In the discretion of the bank, a special purpose trust, or
the sponsor, as the case may be, any bonds issued under this chapter
may be secured by a trust agreement between the bank, a special
purpose trust, or the sponsor and a corporate trustee or trustees,
that may include the Treasurer or any trust company or bank having
the powers of a trust company within or without the state.
(a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign any funds or assets of the
bank or special purpose trust legally available for pledge or
assignment, all or a portion of the revenues to be received by the
bank, directly or indirectly, with respect to the project, or the
proceeds of any contract or contracts, loan or loan agreements, bond
or bond purchase agreements, and may convey or mortgage the project
or projects, or any portion thereof, to be financed out of the
proceeds of the bonds. The trust agreement or resolution providing
for the issuance of the bonds may contain provisions for protecting
and enforcing the rights and remedies of 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 bank or a sponsor authorizing bonds.
(b) Any bank or trust company doing business under the laws of the
state that may act as a depository of the proceeds of bonds or of
revenues or other moneys shall furnish indemnifying bonds or pledge
securities when required by the bank, a special purpose trust, or a
sponsor.
(c) The trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the bank
may deem reasonable and proper for the security of the bondholders.
(d) The trust agreement may provide for the pledge or assignment
of funds or moneys in the custody of the Controller that are legally
available to a sponsor and that are due or payable to the sponsor by
reason of any grant, allocation, apportionment, or appropriation of
the state or agencies thereof, and any legally available funds or
moneys that are or will be due or payable, to any sponsor, the bank,
the state or the agencies thereof by reason of any grant, allocation,
apportionment, or appropriation of the federal government or
agencies thereof.

63079. (a) Bonds issued under this chapter do not constitute a debt
or liability of the state or of any political subdivision thereof,
other than the bank or a special purpose trust, and do not constitute
a pledge of the full faith and credit of the state or any of its
political subdivisions, other than the bank or special purpose trust,
but are payable solely from the funds provided therefor under this
chapter and shall be consistent with Sections 1 and 18 of Article XVI
of the California Constitution. This subdivision shall in no way
preclude bond guarantees or enhancements pursuant to this title. All
the bonds shall contain on the face thereof a statement to the
following effect:
"Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of, or
interest on, this bond."
(b) The issuance of bonds under this chapter shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
therefor or to make any appropriation for their payment. Nothing in
this section shall prevent, or be construed to prevent, the bank from
pledging the full faith and credit of the infrastructure bank fund
to the payment of bonds or issuance of bonds authorized pursuant to
this chapter.

63080. The validity of any bonds issued under this chapter shall
not be affected by any proceedings related to the authorization or
implementation of the project financed by the bonds.

63081. (a) The bank or a special purpose trust may issue bonds for
the purpose of refunding any bonds, notes, or other securities of the
bank, a special purpose trust, or a sponsor 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 bank,
or a sponsor, if it deems advisable, may issue or authorize a sponsor
to issue bonds for the additional purpose of paying all or any part
of the cost of constructing and acquiring additions, improvements,
extensions, or enlargements of any project or any portion thereof.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds as provided in subdivision (a) may, in the
discretion of the bank, be applied to the purchase or retirement at
maturity or redemption of those outstanding bonds either on their
earliest 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 or
dates as may be determined by the bank.
(c) Pending this use, the escrowed proceeds may be invested and
reinvested by the Treasurer or a trustee 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 agency for use in carrying out the purposes of this division.
(d) The portion of the proceeds of the bonds issued for the
additional purpose of paying all or any part of the cost of
construction and acquiring additions, improvements, extensions, or
enlargements of any project may be invested and reinvested by the
Treasurer or a trustee 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 not
later than the time or times when these proceeds will be needed for
the purpose of paying all or any part of the cost. The interest,
income, and profits, if any, earned or realized on this investment
may be applied to the payment of all, or any part of, the cost or may
be used by the bank in carrying out the purposes of this division.

63082. Notwithstanding anything herein to the contrary, this act
shall be supplemental to, and not in lieu of, the right of any
sponsor to issue general obligation bonds or bonds that it is
otherwise lawfully authorized to issue or cause to be issued.

63083. Any and all bonds issued by the bank or a special purpose
trust, their transfer and the income therefrom, shall at all times be
free from taxation of every kind by the state and by all political
subdivisions of the state.

63084. (a) Any issue of revenue bonds by the bank may be secured
and made more attractive to capital markets through financial
instruments, including, but not limited to:
(1) Deeds of trust on the resources, facilities, and revenues of
the projects.
(2) Credit enhancements, including, but not limited to, letters of
credit, bond insurance, and surety bonds provided by private
financial institutions.
(3) Insurance and guarantees provided by the bank itself.
(b) The bank may make loans to help establish and support the
revolving loan funds of small business development corporations,
economic development corporations, community development
corporations, and nonprofit corporations. The loans may be made from
any appropriate account or subaccount of the California
Infrastructure and Economic Development Bank Fund and as determined
by the bank.

63085. Whenever the bank deems that it will increase the salability
or the price of the bonds to obtain, prior to or after sale, a legal
opinion from private counsel as to the validity or tax-exempt nature
of the bonds, the bank may obtain a legal opinion. Payment for legal
services may be made out of the proceeds of the sale of the bonds.

63086. The bank may employ financial consultants, advisers, and
accountants, as may be necessary in its judgment, in connection with
the issuance and sale of any bonds of the bank. Payment for these
services may be made out of the proceeds of the sale of the bonds.

63087. Section 10295 and Sections 10335 to 10382, inclusive, of the
Public Contract Code shall not apply to agreements entered into by
the bank in connection with the sale of bonds or notes authorized
under this division.