SECTIONS 90500-90508 - California Statutes

PUBLIC UTILITIES CODE

SECTION 90500-90508

90500. The district may borrow money and incur indebtedness, and
may issue bonds or other evidences of indebtedness. No indebtedness
shall be incurred exceeding the ordinary annual income and revenue of
the district without the approval of 60 percent of the voters voting
on the proposition to incur such indebtedness, except that a further
vote of the voters is not required for any indebtedness incurred
within the purposes and not exceeding the available amount of any
previously authorized bond issue, and as to such indebtedness the
proceeds of any of the bonds unexpended in the treasury of the
district, or the par value of any of the bonds which are unsold shall
be deemed a part of the ordinary annual income and revenue of the
district.

90501. The district may borrow money for the purpose of defraying
the expenses of the district lawfully incurred after the commencement
of the fiscal year, but prior to the time moneys from the tax levy
for the fiscal year are received by the district, in a sum which
shall not exceed five cents ($0.05) on each one hundred dollars
($100) of assessed valuation of taxable property in the district at
the time the moneys are borrowed, and may evidence such borrowing by
notes bearing interest at a rate not to exceed six (6) percent per
annum. The notes shall be payable from the tax levy from the then
current fiscal year, which levy shall contain a sum sufficient to
provide for the payment of the notes and the interest thereon. The
form of said notes and the proceedings relating to their issuance and
sale, will be governed by the applicable provisions contained in
Article 7 (commencing with Section 53820) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code.

90501.5. The board of directors of the district may, within a
period of two years from and after the formation of the district,
pursuant to a resolution adopted by it for the purpose, borrow money
on certificates of indebtedness, promissory notes, or other evidences
of indebtedness, in anticipation of the estimated tax revenue for
the following fiscal year, to be repaid within four years from the
date of borrowing with interest at a rate not to exceed 6 percent per
annum, in order to enable the district to meet all of its necessary
initial expenses of organization, construction, acquisition,
maintenance, and operation. The total amount of money borrowed and
indebtedness incurred under this section during this two-year period
shall not exceed 50 percent of the total amount of estimated tax
revenue as estimated by the county auditor of the county in which the
district lies for the following fiscal year.
The form of said notes and the proceedings relating to their
issuance and sale, will be governed by the applicable provisions
contained in Article 7 (commencing with Section 53820) of Chapter 4
of Part 1 of Division 2 of Title 5 of the Government Code.

90502. The district shall not incur an indebtedness for public
works which in the aggregate exceeds 15 percent of the assessed value
of all the real and personal property within the district.

90503. Indebtedness which has been incurred for the acquisition,
construction, and operation of transit facilities, where the revenue
from the transit facilities for three years or more next preceding
has been sufficient to pay the interest and principal due on any
bonds issued for its construction or acquisition, in addition to the
cost of operation and maintenance, shall not be counted and included
in ascertaining the limit of indebtedness.

90504. The district may accept, without limitation by any other
provisions of this act requiring approval of indebtedness,
contributions or loans from the United States, this state, or any
department, instrumentality, or agency of either thereof, for the
purpose of financing the acquisition, construction, maintenance, and
operation of transit facilities, and may enter into contracts and
cooperate with, and accept cooperation from, the United States, this
state, or any department, instrumentality, or agency of either
thereof, in the acquisition, construction, maintenance, and
operation, and in financing the acquisition, construction,
maintenance, and operation, of any such transit facilities in
accordance with any legislation which Congress or the Legislature of
the State of California may have heretofore adopted or may hereafter
adopt, under which aid, assistance, and cooperation may be furnished
by the United States or this state in the acquisition, construction,
maintenance, and operation of any such transit facilities. The
district may do any and all things necessary in order to avail itself
of such aid, assistance, and cooperation under any federal or state
legislation now or hereafter enacted. Any evidence of indebtedness
issued under this section shall constitute a negotiable instrument.

90505. The district may purchase equipment such as cars, trolley
buses and motorbuses, and 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 rolling
equipment and may dispose of the equipment trust certificates upon
the terms and conditions as the board may deem appropriate. All money
required to be paid by the district pursuant to the agreements,
leases and equipment trust certificates provided for in this section
shall be payable solely from the revenues or income to be derived
from the transit facilities and from grants and loans as provided in
Section 90504. Payment for equipment, or the rental of equipment, may
be made in installments and the deferred installments may be
evidenced by equipment trust certificates payable solely from revenue
or income as provided in this section, and title to the equipment
shall not vest in the district until the equipment trust certificates
are paid.

90506. The agreement to purchase or lease may direct the vendor or
lessor to sell and assign or lease the rolling equipment to a bank or
trust company, duly authorized to transact business in the State of
California, as trustee, for the benefit and security of the equipment
trust certificates and may direct the trustee to deliver the rolling
equipment to one or more designated officers of the district and may
authorize the district to simultaneously execute and deliver an
installment purchase agreement or a lease of the equipment to the
district.

90507. 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. The agreements,
leases, and equipment trust certificates shall be authorized by
resolution of the district and shall contain such covenants,
conditions and provisions as may be deemed necessary or appropriate
to insure the payment of the equipment trust certificates from the
revenue or income to be derived from the transit system.

90508. The covenants, conditions and provisions of the agreements,
leases, and equipment trust certificates shall not conflict with any
of the provisions of any trust agreements securing the payment of
bonds, notes or certificates of the district.