SECTIONS 32100-32116 - California Statutes

PUBLIC RESOURCES CODE

SECTION 32100-32116

32100. The total amount of bonds which may be outstanding at any
one time under this division shall not exceed six hundred fifty
million dollars ($650,000,000). Bonds for which moneys or securities
in amounts necessary to pay or redeem the principal, interest, and
any redemption premium thereon have been deposited in trust shall not
be deemed outstanding for purposes of this section.

32101. The Legislature may, by statute, authorize the authority to
issue bonds in excess of the amount specified in Section 32100.

32102. (a) The authority is authorized from time to time to issue
its negotiable bonds to provide funds to achieve its purposes.
(b) Bonds may be authorized to finance a single project for a
single participating party, a series of projects for a single
participating party, a single project for several participating
parties, or several projects for several participating parties.

32103. Except as otherwise expressly provided by the authority,
every issue of its bonds shall be general obligations of the
authority payable from any revenues or moneys of the authority
available therefor and not otherwise pledged, including the proceeds
of additional bonds, subject only to any agreements with the holders
of particular bonds, notes, or other obligations pledging any
particular revenues or moneys and subject to any agreements with
holders of particular bonds pledging any particular revenues.
Notwithstanding that the bonds may be payable from a special fund,
they shall be deemed to be negotiable instruments for all purposes,
subject only to the bond registration provisions.

32104. Subject to the limitations in Sections 32100 and 32101, the
bonds may be issued as serial bonds or as term bonds, or the
authority may, in its discretion, issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the rate or
rates, be payable at the time or times, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in the manner, be payable in lawful money of
the United States of America at the place or places, and be subject
to the terms of redemption, as the resolution or resolutions provide.

32105. The bonds or notes shall be sold by the Treasurer within 60
days after receipt of a certified copy of the authority's resolution
authorizing the sale of the bonds, except that the authority may, at
its discretion, adopt a resolution extending the 60-day period. The
sale may be a public or private sale, and for such price or prices
and on such terms and conditions, as the authority determines, after
giving due consideration to the recommendations of any participating
party to be assisted from the proceeds of the bonds. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds which shall be exchanged
for definitive bonds. The Treasurer may sell any bonds at a price
below the par value if the discount on any bonds sold does not exceed
6 percent of the par value.

32106. Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain the following provisions, which shall be a
part of the contract with the holders of the bonds to be authorized:
(a) Pledging the full faith and credit of the authority, or
pledging all or any part of the revenues of any urban waterfront
restoration project or any revenue-producing contract or contracts
made by the authority with any individual, partnership, corporation,
or association or other body, public or private, or other moneys of
the authority, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders as may then exist.
(b) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year thereby, and the use and disposition of the revenues.
(c) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(d) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
(e) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
(f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(g) 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.
(h) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
(i) Defining the acts or omissions to act which constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
a default.
(j) The mortgaging of any project and the site thereof for the
purpose of securing the bondholders.
(k) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
(l) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and the
participating parties to receive the financing.

32107. Neither the members of the authority nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes or be subject to any personal liability or accountability by
reason of the issuance thereof.

32108. The authority may, out of any funds available therefor,
purchase its bonds or notes. The authority may hold, pledge, cancel,
or resell the bonds, subject to and in accordance with agreements
with bondholders.

32109. In the discretion of the authority, any bonds issued under
this division may be secured by a trust agreement by and between the
authority and a corporate trustee or trustees, which may be the
Treasurer or any trust company or bank having the powers of a trust
company within or without the state.

32110. (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledge 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 the
provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation
of law, including particularly provisions specifically authorized to
be included in any resolution or resolutions of the authority
authorizing bonds thereof.
(b) Any bank or trust company doing business under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues or other moneys may furnish indemnifying bonds or pledge
securities as may be required by the authority.
(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
authority may deem reasonable and proper for the security of the
bondholders.

32111. Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this division.

32112. All expenses incurred in carrying out the provisions of this
trust agreement or resolution may be treated as a part of the cost
of the operation of a project.

32113. Bonds issued under this division do not constitute a debt or
liability of the state or of any political subdivision thereof,
other than the authority, or a pledge of the full faith and credit of
the state or any of its political subdivisions, other than the
authority, but are payable solely from the funds provided therefor
under this division. 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."
The issuance of bonds under this division shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
whatever therefor or to make any appropriation for their payment.
Nothing in this section shall prevent, or be construed to prevent,
the authority from pledging its full faith and credit to the payment
of bonds or issue of bonds authorized pursuant to this division.

32114. (a) The authority may provide for the issuance of bonds of
the authority for the purpose of refunding any bonds, notes, or other
securities of the authority then outstanding, including the payment
of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of these bonds and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of an urban waterfront restoration project or any
portion thereof.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds, notes, or other securities may, in the discretion
of the authority, be applied to the purchase or retirement at
maturity or redemption of these outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending the application,
be placed in escrow to be applied to the purchase or retirement at
maturity or redemption on the date as may be determined by the
authority.
(c) Pending this use, the escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at time or times appropriate to assure
the prompt payment, as to principal, interest, and redemption
premium, if any, of the outstanding bonds to be so 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 so 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 authority and the
conservancy for use in carrying out 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
constructing and acquiring additions, improvements, extensions, or
enlargements of an urban waterfront restoration project may be
invested and reinvested by the Treasurer in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, 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 authority and
the conservancy in carrying out this division.
(e) All these bonds are subject to this division in the same
manner and to the same extent as other bonds issued pursuant to the
provisions of this division.

32115. Bonds issued by the authority are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds which may be invested in county, municipal,
or school district bonds, and these bonds are securities which may
properly and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state
for any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of these bonds which
qualify or are eligible for these purposes and uses.

32116. No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division, except
that, for the purposes of meeting the necessary expenses of initial
organization and operation until the date that the authority derives
revenues or proceeds from bonds or notes as provided under this
division, the authority may borrow money as needed for these expenses
from the General Fund in the State Treasury. The borrowed money
shall be repaid with interest within a reasonable time after the
authority receives revenues or proceeds from bonds or notes as
provided under this division.