SECTIONS 120700-120702 - California Statutes

PUBLIC UTILITIES CODE

SECTION 120700-120702

120700. The board may bring an action to determine the validity of
any of its bonds, equipment trust certificates, warrants, notes, or
other evidences of indebtedness pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure.

120701. All bonds and other evidences of indebtedness issued by the
board under this chapter, and the interest thereon, are free and
exempt from all taxation within the state, except for transfer,
franchise, inheritance, and estate taxes.

120702. Notwithstanding any other provisions of this division or
any other law, the provisions of all ordinances, resolutions, and
other proceedings in the issuance by the board of any bonds, bonds
with a pledge of revenues, bonds for improvement districts, revenue
bonds, equipment trust certificates, notes, or any and all evidences
of indebtedness or liability constitute a contract between the board
and the holders of the bonds, equipment trust certificates, notes, or
evidences of indebtedness or liability, and the provisions thereof
are enforceable against the board or any or all of its successors or
assigns, by mandamus or any other appropriate suit, action, or
proceeding in law or in equity in any court of competent
jurisdiction.
Nothing in this division or in any other law shall be held to
relieve the board or the territory included within it from any bonded
or other debt or liability contracted by the board. Upon dissolution
of the board or upon withdrawal of territory therefrom, that
territory formerly included within the board, or withdrawn therefrom,
shall continue to be liable for the payment of all bonded and other
indebtedness or liabilities outstanding at the time of the
dissolution or withdrawal as if the board had not been so dissolved
or the territory withdrawn therefrom, and it shall be the duty of the
successors or assigns to provide for the payment of the bonded and
other indebtedness and liabilities.
Except as may be otherwise provided in the proceedings for the
authorization, issuance, and sale of any revenue bonds, bonds secured
by a pledge of revenues, or bonds for improvement districts secured
by a pledge of revenues, revenues of any kind or nature derived from
any revenue-producing improvements, works, facilities, or property
owned, operated, or controlled by the board shall be pledged,
charged, assigned, and have a lien thereon for the payment of the
bonds as long as they are outstanding, regardless of any change in
ownership, operation, or control of the revenue-producing
improvements, works, facilities, or property and it shall, in any
later event or events, be the duty of the successors or assigns to
continue to maintain and operate the revenue-producing improvements,
works, facilities, or property as long as bonds are outstanding.