SECTIONS 132370-132372.4 - California Statutes

PUBLIC UTILITIES CODE

SECTION 132370-132372.4

132370. The consolidated agency may issue bonds, payable from
revenue of any facility or enterprise to be acquired or constructed
by the consolidated agency, in the manner provided by the Revenue
Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1
of Division 2 of Title 5 of the Government Code), and all of the
provisions of that law are applicable to the consolidated agency.

132370.1. (a) The consolidated agency may issue revenue bonds under
the Revenue Bond Law of 1941 for any one or more transit facilities
authorized to be acquired, constructed, or completed by the
consolidated agency or for transit equipment described in Section
132372 below authorized to be acquired by the consolidated agency or,
in the alternative, the consolidated agency may issue revenue bonds
under the Revenue Bond Law of 1941 for the acquisition, construction,
and completion of any one of those transit facilities or for transit
equipment described in Section 132372 below authorized to be
acquired by the consolidated agency.
(b) Nothing in this article prohibits the consolidated agency from
availing itself of, or making use of, any procedure provided in this
chapter for the issuance of bonds of any type or character for any
of the transit facilities authorized hereunder, and all proceedings
may be carried on simultaneously or, in the alternative, as the
consolidated agency may determine.
(c) Article 3 (commencing with Section 54380) of Chapter 6 of Part
1 of Division 2 of Title 5 of the Government Code does not apply to
the issuance and sale of bonds pursuant to this chapter and the
consolidated agency shall authorize the issuance of such bonds by
resolution of its governing board.

132370.2. The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code), the Improvement Bond
Act of 1915 (Division 10 (commencing with Section 8500) of the
Streets and Highways Code), and the Municipal Improvement Act of 1913
(Division 12 (commencing with Section 10000) of the Streets and
Highways Code), are applicable to the consolidated agency.

132370.3. Chapter 1 (commencing with Section 99000) of Part 11 of
Division 10 of the Public Utilities Code is applicable to the
consolidated agency.

132370.4. The consolidated agency shall be considered to be a
"local agency" as defined in subdivision (h) of Section 53317 of the
Government Code and the provisions of Chapter 2.5 (commencing with
Section 53311) of Part 1 of Division 2 of Title 5 of the Government
Code are applicable to the consolidated agency.

132370.5. The consolidated agency shall be considered to be a
"local agency" as defined in subdivision (f) of Section 6585 of the
Government Code and the provisions of Article 4 (commencing with
Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government
Code are applicable to the consolidated agency.

132370.6. The consolidated agency may borrow money in accordance
with Article 7 (commencing with Section 53820), Article 7.6
(commencing with Section 53850), or Article 7.7 (commencing with
Section 53859) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
Government Code.

132370.7. (a) The consolidated agency may borrow money in
anticipation of the sale of bonds which have been authorized to be
issued, but which have not been sold and delivered, and may issue
negotiable bond anticipation notes therefor and may renew the bond
anticipation notes from time to time, but the maximum maturity of any
bond application notes, including the renewals thereof, shall not
exceed five years from the date of delivery of the original bond
anticipation notes.
(b) The bond anticipation notes may be paid from any money of the
consolidated agency available therefor and not otherwise pledged. If
not previously otherwise paid, the bond anticipation notes shall be
paid from the proceeds of the next sale of the bonds of the
consolidated agency in anticipation of which they were issued. The
bond anticipation notes shall not be issued in any amount in excess
of the aggregate amount of bonds which the consolidated agency has
not been authorized to issue, less the amount of any bonds of the
authorized issue previously sold, and also less the amount of other
bond anticipation notes therefor issued and then outstanding.
(c) The bond anticipation notes shall be issued and sold in the
same manner as the bonds. The bond anticipation notes and the
resolution or resolutions authorizing them may contain any
provisions, conditions, or limitations which a resolution of the
consolidated agency authorizing the issuance of bonds may contain.

132370.8. The consolidated agency 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.

132370.9. All bonds and other evidences of indebtedness issued by
the consolidated agency 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.

132370.10. (a) Notwithstanding any other provisions of this article
or any other law, the provisions of all ordinances, resolutions, and
other proceedings in the issuance by the consolidated agency of any
bonds, bonds with a pledge of revenues, bonds for any and all
evidences of indebtedness or liability constitute a contract between
the consolidated agency and the holders of the bonds, equipment trust
certificates, notes, or evidences of indebtedness or liability, and
the provisions thereof are enforceable against the consolidated
agency or any or all of its successors or assigns, by mandamus or any
other appropriate suit, action, proceeding in law or in equity in
any court of competent jurisdiction.
(b) Nothing in this article or in any other law shall be held to
relieve the consolidated agency or the territory included within it
from any bonded or other debt or liability contracted by the
consolidated agency. Upon dissolution of the consolidated agency or
upon withdrawal of territory therefrom, that territory formerly
included within the consolidated agency, 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 consolidated agency 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.
(c) 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 consolidated agency
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 changes 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, and property as long as bonds are
outstanding.

132372. (a) The consolidated agency may purchase transit equipment
such as cars, trolley buses, motorbuses, light rail vehicles, or
rolling equipment, and may execute agreements, leases, and equipment
trust certificates in the forms customarily used by private
corporations engaged in the transit business appropriate to effect
the purchase and leasing of transit equipment, and may dispose of the
equipment trust certificates upon the terms and conditions that the
consolidated agency may deem appropriate.
(b) Payment for transit equipment, or rentals therefor, may be
made in installments, and the deferred installments may be evidenced
by equipment trust certificates that are or will be legally available
to the consolidated agency. Title to the equipment shall not vest in
the consolidated agency until the equipment trust certificates are
paid.

132372.1. The agreement to purchase or lease transit equipment may
direct the vendor or lessor to sell and assign or lease the transit
equipment to a bank or trust company duly authorized to transact
business in the state as trustee for the benefit and security of the
equipment trust certificates, and may direct the trustee to deliver
the transit equipment to one or more designated officers of the
consolidated agency and may authorize the consolidated agency to
simultaneously therewith execute and deliver an installment purchase
agreement or a lease of such equipment to the consolidated agency.

132372.2. (a) The agreements and leases shall be duly acknowledged
before a person authorized by law to take acknowledgments of deeds
and in the form required for acknowledgment of deeds.
(b) The agreements, leases and equipment trust certificates shall
be authorized by resolution of the consolidated agency and shall
contain covenants, conditions, and provisions which may be deemed
necessary or appropriate to ensure the payment of the equipment trust
certificates from such legally available source or sources of funds
as may be specified in the certificates.

132372.3. The covenants, conditions, and provisions of the
agreements, leases and equipment trust certificates shall not
conflict with any of the provisions of any trust agreement or similar
document securing the payment of bonds, notes, or certificates of
the consolidated agency.

132372.4. (a) An executed copy of each agreement and lease shall be
filed in the office of the Secretary of State, who shall be entitled
to receive one dollar ($1) for each copy filed.
(b) The filing constitutes notice to any subsequent judgment
creditor or any subsequent purchaser.