SECTIONS 26030-26037 - California Statutes

PUBLIC RESOURCES CODE

SECTION 26030-26037

26030. The authority may contract with any participating party for
the construction of a project by such participating party. All such
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 such standards for architectural and
engineering design as may be established, and subject to such
supervision as the authority deems necessary. The authority may agree
to pay the cost of such project constructed by any participating
party and to advance such costs from time to time in installments or
otherwise as required by the contract for the construction thereof.
Title to all such projects shall be vested in the authority 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 such project including the payment of the purchase price under
installment sales contracts.

26031. (a) The authority may, as lessor or lessee, enter into
leases and agreements with any participating party relating to the
acquisition, construction, and installation of any project, including
real property, buildings, machinery, furnishings, equipment, and
alternative sources and advanced transportation technology facilities
of any kind or character.
(b) The terms and conditions of those leases may be as mutually
agreed upon. The 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 any other terms and conditions as the
authority may determine.
(c) The authority may fix, revise, charge, and collect rates,
rents, fees, and charges for each project. Those 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:
(1) Pay the principal of and the interest on outstanding bonds,
notes, or other evidences of indebtedness of the authority issued
with respect to the project as they shall become due and payable.
(2) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, those bonds,
notes, or other evidences of indebtedness. A sufficient amount of the
revenues derived from a project may be set aside at regular
intervals as may be provided in that 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 those
bonds, notes, or other evidences of indebtedness as they shall 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. That pledge shall be valid and binding from the
time the pledge is made; the rates, rents, fees, and charges and
other revenues or other moneys so pledged and thereafter received by
the authority shall immediately be subject to the lien of that pledge
without any physical delivery thereof or further act, and the lien
of any such pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the
authority, irrespective of whether the parties have notice thereof.
Neither the resolution nor any trust agreement nor any other
agreement nor any lease by which a pledge is created need be filed or
recorded except in the records of the authority. The use and
disposition of money to the credit of a sinking or other similar fund
shall be subject to the provisions of the resolution authorizing the
issuance of those bonds or of that trust agreement. The sinking or
other similar fund may be a fund for all bonds, notes, or other
evidences of indebtedness of the authority issued to finance projects
of a particular participating party without distinction or priority
of one over another. However, the authority, in the 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 issued to finance a particular project or projects and may,
additionally, permit and provide for the issuance of bonds having a
subordinate lien in respect of the security herein authorized to
other bonds, notes, or other evidences of indebtedness of the
authority, and, in that case, the authority may create separate
sinking or other similar funds in respect of those subordinate lien
bonds, notes, or other evidences of indebtedness.
(3) Pay operating and administrative costs of the authority.

26032. The authority may enter into contracts of sale with any
participating party covering any project financed by the authority.
The purchase price pursuant to the contract of sale shall be treated
in substantially the same manner and shall be at least sufficient to
provide funds for all the purposes provided in Section 26031 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 authority under any
installment sales or conditional sales contract shall be applied by
the authority substantially in the same manner as provided in Section
26031 in the case of lease payments or rental charges received by
the authority.

26032.5. As an alternative to leasing or selling a project to a
participating party, the authority may finance the acquisition,
construction, or installation of a project 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
26031 and may be paid in installments, together with interest on the
unpaid balance, or otherwise as may be mutually agreed by the
authority 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 authority.
The provisions of Section 26030 shall not be applicable to
projects constructed with moneys loaned pursuant to this section.

26033. All moneys received pursuant to the provisions of this
division, 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
division. Any bank or trust company with which such moneys shall be
deposited shall act as trustee of such moneys and shall hold and
apply the same for the purposes hereof, subject to such regulations
as the resolution authorizing the bonds of any issue or the trust
agreements securing such bonds may provide.

26034. Any holder of bonds, notes, or other obligations issued
under the provisions of this division 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 such
trust agreement securing, such 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 such resolution or trust
agreements, and may enforce and compel the performance of all duties
required by this division or by such resolution or trust agreement to
be performed by the authority or by any officer, employee, or agent
thereof, including the fixing, charging, and collecting of the rates,
rents, fees, and charges herein authorized and required by the
provisions of such resolution or trust agreement to be fixed,
established, and collected.

26035. The exercise of the powers granted by this division shall be
in all respects for the benefit of the people of this state, for
their health and welfare, and protection of the state's environment.
Any bonds, notes, or other obligations issued under the provisions of
this division, their transfer and the income therefrom, shall at all
times be free from taxation of every kind by the state and by
municipalities and other political subdivisions of the state.
However, the preceding sentence shall not apply with respect to any
bonds, notes, or other obligations, or the income therefrom, for any
period during which such bonds, notes, or other obligations are held
by (a) any participating party, (b) persons, organizations, trades,
or businesses (whether or not incorporated, organized in this state,
or affiliated with such participating party) owned or controlled,
directly or indirectly, by such participating party, or (c) persons,
organizations, trades or businesses (whether or not incorporated,
organized in this state, or affiliated with such participating party)
which own or control, directly or indirectly, such participating
party.

26036. If the jurisdiction of the authority to order a proposed act
is not affected, an omission of any officer or the authority in the
proceedings under this division or any other defect in the
proceedings shall not invalidate the proceedings for issuance of
bonds pursuant to this division.

26037. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any issuance or proposed
issuance of bonds under this division and the legality and validity
of all proceedings previously taken or proposed in a resolution of
the authority to be taken for the authorization, issuance, sale and
delivery of the bonds and for the payment of the principal thereof
and interest thereon.