SECTIONS 10700-10706 - California Statutes

STREETS AND HIGHWAYS CODE

SECTION 10700-10706

10700. Notwithstanding any other law, the legislative body may
determine, by resolution, to allow landowners to defer payment of
their assessments pursuant to this chapter. This chapter may be used
only if 80 percent or more of the area of the assessment district is
developed for residential, commercial, or industrial use.

10701. The legislative body may determine criteria that property
owners must meet to qualify for deferral, and may determine
procedures to ensure that the criteria are satisfied.

10702. No deferral arrangement may restrict, reduce, or eliminate
any remedy of a bondholder provided by this division in the event of
a default.

10703. Deferral may be provided through a year-to-year agreement
between the city and an eligible property owner, which provides that
the city will make assessment payments on behalf of the property
owner for that year. No agreement shall commit the city to make
deferral payments beyond one year. No agreement of this type shall be
construed as a debt of the city.

10704. Alternatively, the city may create a deferral fund for the
assessment district, and deposit into the deferral fund an amount
sufficient to pay the asessments being deferred for a specified
period of time. Funds in the deferral fund may be invested as other
city funds are invested, or in more restricted ways as determined by
the legislative body. Any investment of the funds in the deferral
fund shall comply with federal arbitrage rules.

10705. A city may increase the principal amount of bonds issued
under this division by an amount sufficient to fund a program
pursuant to this chapter. The proceeds of bonds issued for this
purpose shall be placed in the deferral fund created pursuant to
Section 10704, and may be used for no other purpose than financing
deferrals. The proceeds may be invested in interest-bearing
securities of the federal government with maturities occurring on or
before the maturity of the bonds issued pursuant to this section. Any
investment of those bond proceeds shall comply with federal
arbitrage rules (26 U.S.C. Sec. 103 and the rules adopted pursuant
thereto).

10706. The amount of any deferred assessments, including interest
at a rate determined by the legislative body, shall be due and
payable whenever the parcel of property upon which the assessment was
levied is transferred, or at the time of last maturity of the bonds
issued for the improvement pursuant to this division, or at other
times as determined by the legislative body.