SECTIONS 487-487.3 - California Statutes

MILITARY AND VETERANS CODE

SECTION 487-487.3

487. The department, subject to the approval of the National Guard
Members' Finance Committee, may provide for the issuance, sale, or
exchange of refunding bonds for the purpose of redeeming or retiring
any bonds issued under this chapter. All provisions of this chapter
applicable to the issuance of revenue bonds are applicable to the
funding or refunding bonds and to the issuance, sale, or exchange
thereof. The department, with the approval of the National Guard
Members' Finance Committee, may adopt a resolution or resolutions of
issuance or supplemental resolutions authorizing the issuance of such
refunding bonds and fixing the terms and conditions thereof.

487.1. Refunding bonds may be issued in a principal amount
sufficient to provide funds for the payment of all revenue bonds to
be refunded thereby and in addition to the payment of all expenses
incident to the calling, retiring, or paying of such outstanding
revenue bonds and the issuance of such refunding bonds. Such expenses
include any amount necessary to be made available for the payment of
interest upon such refunding bonds from the date of sale thereof to
the date of payment of the revenue bonds to be refunded, or to the
date upon which the revenue bonds to be refunded will be paid
pursuant to the call thereof or agreement with the holders thereof,
and the premium, if any, necessary to be paid in order to call or
retire the outstanding revenue bonds and the interest accruing
thereon to the date of the call or retirement.

487.2. Refunding revenue bonds shall not constitute a debt or
obligation of the State of California but shall be revenue bonds of
the department of the same character and payable from the same funds
as other revenue bonds authorized pursuant to this chapter. Any and
all reserve or other funds applicable to the payment of the revenue
bonds to be refunded may, if so directed by the department, be
transferred to any reserve or other funds provided with respect to
the refunding bonds. The pledge of revenues to be received from
contracts entered into by the department with California National
Guard members shall not be lessened, diminished, or affected in any
way by the issuance of such refunding bonds.

487.3. The department may from time to time or at any time sell or
exchange refunding bonds for the purpose of retiring, paying, or
refunding either all or part of the outstanding revenue bonds, or of
one or more series thereof, as it deems advisable. Such refunding
bonds may be issued and delivered as outstanding revenue bonds to be
refunded thereby mature or are about to mature or are subject to call
or redemption, or if the retirement thereof has been assured by
consent of the holders thereof. Refunding bonds may be delivered in
whole or in part in exchange for outstanding revenue bonds with the
consent of such holders.