SECTIONS 92300-92310 - California Statutes

GOVERNMENT CODE

SECTION 92300-92310

92300. The commission may contract with any participating party for
the construction of a project by the participating party.
All contracts for the construction of a project by a participating
party shall provide that the participating party shall be
responsible for the architectural and engineering design and for the
construction and completion thereof, subject to those standards for
architectural and engineering design that may be established, and
subject to any supervision that the commission deems necessary.

92301. The commission may agree to pay the cost of a project
constructed by any participating party and to advance the costs from
time to time in installments or otherwise as required by the contract
for the construction thereof.
Title to all projects shall be vested in the commission, subject
to the terms of any lease thereof to the participating party or the
rights of a participating party under any contract for the purchase
of the project, including the payment of the purchase price under
installment sales contracts.

92302. The commission may, as lessor or lessee, enter into leases
and agreements with any participating party relating to the
acquisition, construction, and installation of any project or part
thereof.
The terms and conditions of the leases may be as mutually agreed
upon.

92303. Any lease may provide the means or methods by which title
shall vest in a participating party upon the termination of the lease
and shall contain other terms and conditions that the commission may
determine.

92304. The commission may fix, revise, charge, and collect rates,
rents, fees, and charges for each project.
The rates, rents, fees, and charges shall be fixed and adjusted
with respect to the aggregate of rates, rents, fees, and charges from
all projects so as to provide funds sufficient with other revenues
and moneys available therefor, if any, to do all of the following:
(a) Pay the principal of, and the interest on, outstanding bonds,
notes, or other evidences of indebtedness of the commission financing
project that shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, the bonds,
notes, or other evidences of indebtedness. A sufficient amount of the
revenues derived from a project may be set aside at such regular
intervals as may be provided in the resolution or trust agreement in
a sinking or other similar fund which is hereby pledged to, and
charged with, the payment of the principal of, and interest on, the
bonds, notes, or other evidences of indebtedness as they become due,
and the redemption price or the purchase price of bonds, notes, or
other evidences of indebtedness retired by call or purchase as
therein provided. The pledge shall be valid and binding from the time
when the pledge is made; the rates, rents, fees, and charges and
other revenues or other moneys so pledged and thereafter received by
the commission shall immediately be subject to the lien of the pledge
without any physical delivery thereof or further act, and the lien
of any pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the
commission, regardless of whether the parties have notice thereof.
No resolution, trust agreement or other agreement, or lease by which
a pledge is created need be filed or recorded except in the records
of the commission. The use and disposition of money to the credit of
sinking or other similar fund shall be subject to the resolution
authorizing the issuance of the bonds or of the trust agreement.
Except as may be otherwise provided in the resolution or the trust
agreement, the sinking or other similar fund may be a fund for all
bonds, notes, or other evidences of indebtedness of the commission
financing projects of a particular participating party without
distinction or priority of one over another. However, the commission,
in any resolution or trust agreement, may provide that the sinking
or other similar fund shall be the fund for a particular project or
projects and for the bonds financing a particular project or projects
and may, additionally, permit and provide for the issuance of bonds
having a subordinate lien with respect to the security authorized for
other bonds, notes, or other evidences of indebtedness of the
commission, and, in such case, the commission may create separate
sinking or other similar funds for the subordinate lien bonds, notes,
or other evidences of indebtedness.
(c) Pay operating and administrative costs of the commission.

92305. The commission may enter into contracts of sale with any
participating party covering any project financed by the commission.
The purchase price pursuant to the contract of sale shall be
sufficient to provide funds for all the purposes provided in Section
92304 and may be paid in installments, together with interest on the
unpaid balance, or otherwise, as may be mutually agreed and set forth
in the contract of sale.
All payments received by the commission under any installment sale
or conditional sales contract shall be applied by the commission
substantially in the same manner as provided in Section 92302 in the
case of lease payments or rental charges received by the commission.

92306. As an alternative to leasing or selling a project or part
thereof to a participating party, the commission may finance the
acquisition, construction, or installation of a project, or any part
thereof, by means of a loan to the participating party.
The principal amount of the participating party's obligation as
borrower shall be sufficient to provide funds for all the purposes
specified in subdivisions (a), (b), and (c) of Section 92304 and may
be paid in installments, together with interest on the unpaid
balance, or otherwise as may be mutually agreed by the commission and
the participating party and set forth in the loan agreement.
Loans made pursuant to this section may be secured or unsecured,
in the discretion of the commission.
Section 92300 shall not be applicable to projects constructed with
moneys loaned pursuant to this section.

92307. All money received pursuant to this title, whether as
proceeds from the sale of bonds, notes, or other evidences of
indebtedness or as revenues, shall be deemed to be trust funds to be
held and applied solely as provided in this title.
Any bank or trust company with which the money is deposited shall
act as trustee of the money and shall hold and apply it for the
purposes hereof, subject to the resolution authorizing the bonds of
any issue or the trust agreement securing the bonds may provide.

92308. Any holder of bonds, notes, or other obligations issued
under this title, or any of the coupons appertaining thereto, and the
trustee or trustees under any trust agreement, except to the extent
the rights herein given may be restricted by any resolution
authorizing the issuance of, or any trust agreement securing, the
bonds, notes, or other obligations, may, either at law or in equity,
by suit, action, mandamus, or other proceedings, protect and enforce
any and all rights under the laws of the state or granted hereunder,
or under the resolution or trust agreement, and may enforce and
compel the performance of all duties required by this title, or by
resolution or trust agreement, to be performed by the commission or
by an officer, employee, or agent thereof, including the fixing,
charging, and collecting of the rates, rents, fees, and charges
authorized by this title and required by the resolution or trust
agreement to be fixed, established, and collected.

92309. Notwithstanding any other provision of law:
(a) The commission and its revenues, amounts for administration
expenses, and any other income shall be exempt from all taxes on, or
measured by, income.
(b) Bonds issued by the commission shall be exempt from all
property taxation, and the interest on the bonds shall be exempt from
all taxes on income.
(c) All property owned by the commission shall be exempt from
property taxes, assessments, and other public charges secured by
liens.
(d) All interest of the participating party in the property of any
project shall, for purposes of property taxation, be subject to
Division 1 (commencing with Section 101) of the Revenue and Taxation
Code, and the interests that constitute the tax base for property
taxation is subject to assessments and charges on the same basis as
other property.
(e) "Sale" and "purchase," for the purposes of Part 1 (commencing
with Section 6001) of Division 2 of the Revenue and Taxation Code, do
not include any lease or transfer of title of tangible personal
property constituting any project or facility to the commission by a
participating party, nor any lease or transfer of title of tangible
personal property constituting any project or facility by the
commission to a participating party, when the transfer or lease is
made pursuant to this title.

92310. Subject to Section 92352, the existence of the commission
may be terminated at any time by the Legislature. Upon dissolution of
the commission, the title to all properties owned by it shall vest
in and become the property of the State of California and shall not
inure to the benefit of any private party.