SECTIONS 37660-37662 - California Statutes

HEALTH AND SAFETY CODE

SECTION 37660-37662

37660. The local agency may provide financing to any participating
party for the purpose of historical rehabilitation authorized
pursuant to an historical rehabilitation financing program. All
agreements for loans shall provide that the architectural and
engineering design of the historical rehabilitation shall be subject
to the standards which may be established by the local agency and
that the work of historical rehabilitation shall be subject to any
supervision the local agency deems necessary. The local agency may
provide financing to any qualified mortgage lender provided that the
qualified mortgage lender shall use the financing to provide
financing to any participating party for the purpose of historical
rehabilitation authorized pursuant to a historical rehabilitation
financing program pursuant to this chapter.

37661. The local agency may enter into loan agreements with any
participating party or qualified mortgage lender relating to
historical rehabilitation of any kind or character. The terms and
conditions of the loan agreements may be as mutually agreed upon. Any
loan agreement may provide the means or methods by which any
mortgage taken by the local agency shall be discharged, and it shall
contain any other terms and conditions which the local agency may
require. The local agency is authorized to fix, revise, charge, and
collect interest and principal and all other rates, fees, and charges
with respect to financing of historical rehabilitation. The rates,
fees, charges, and interest shall be fixed and adjusted so that the
aggregate of the rates, fees, charges, and interest will provide
funds sufficient with other revenues and moneys which it is
anticipated will be available therefor, if any, to do all of the
following:
(a) Pay the principal of and interest on outstanding bonds of the
local agency issued to finance the historical rehabilitation as the
same shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing bonds. A sufficient amount of the revenues
derived from historical rehabilitation may be set aside at regular
intervals as may be provided by the resolution 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 as the same
shall become due, and the redemption price or the purchase price of
bonds retired by call or purchase as therein provided. The pledge
shall be valid and binding from the time the pledge is made. The
rates, fees, interest, and other charges, revenues, or moneys so
pledged and thereafter received by the local agency shall immediately
be subject to the lien of the pledge without any physical delivery
thereof or further act, and the lien of the pledge shall be valid and
binding as against all parties having claims of any kind in tort,
contract, or otherwise against the local agency, irrespective of
whether the parties have notice thereof. Neither the resolution nor
any loan agreement by which a pledge is created need be filed or
recorded except in the records of the local agency. The use and
disposition of moneys to the credit of the sinking or other similar
fund shall be subject to the provisions of the resolution authorizing
the issuance of bonds. Except as may otherwise be provided in the
resolution, the sinking or other similar fund may be a fund for all
bonds of the local agency issued to finance the rehabilitation of the
historical property of a particular participating party without
distinction or priority. The local agency, however, in the resolution
may provide that the sinking or other similar fund shall be the fund
for a particular historical rehabilitation project or projects and
for the bonds issued to finance the historical rehabilitation project
or projects and may, additionally, authorize and provide for the
issuance of bonds having a lien with respect to the security
authorized by this section which is subordinate to the lien of other
bonds of the local agency, and, in which case, the local agency may
create separate sinking or other similar funds securing the bonds
having the subordinate lien.
(c) Pay operating and administrative costs of the local agency
incurred in the administration of the program authorized by this
part.

37662. All moneys received pursuant to the provisions of this part,
whether proceeds from the sale of bonds or revenues, shall be deemed
to be trust funds to be held and applied solely as provided in this
part. Any bank or trust company in which such moneys are deposited
shall act as trustee of such moneys and shall hold and apply the same
for the purposes specified in this part, subject to the terms of the
resolution authorizing the bonds.