37930-37940
HEALTH AND SAFETY CODE
SECTION 37930-37940
37930. (a) A local agency may, from time to time, issue its
negotiable bonds or notes for the purpose of financing residential
rehabilitation, including the rehabilitation, construction, or
acquisition of (1) single residences for single participating
parties, (2) a series of residences for a single participating party,
(3) single residences for several participating parties, or (4)
several residences for several participating parties. In anticipation
of the sale of such bonds, the local agency may issue negotiable
bond anticipation notes and may renew such notes from time to time.
Bond anticipation notes may be paid from the proceeds of sale of the
bonds of the local agency in anticipation of which they were issued.
Bond anticipation notes and agreements relating thereto and the
resolution or resolutions authorizing such notes and agreements may
contain any provisions, conditions, or limitations which a bond,
agreement relating thereto, or bond resolution of the local agency
may contain except that any such note or renewal thereof shall mature
at a time not later than two years from the date of the issuance of
the original note.
(b) Every issue of its bonds shall be a special obligation of the
local agency payable from all or any part of the revenues specified
in this part. The bonds shall be negotiable instruments for all
purposes, subject only to the provisions of such bonds for
registration.
37930.5. In determining the amount of bonds to be issued, the local
agency may include all costs of the issuance of such revenue bonds,
bond reserve funds, and bond interest estimated to accrue for a
period not exceeding 12 months from the date of the bonds.
37931. The bonds may be issued as serial bonds or as term bonds, or
the local agency, in its discretion, may issue bonds of both types.
The bonds shall be authorized by resolution of the local agency and
shall bear such date or dates, mature at such time or times, not
exceeding 50 years from their respective dates of issuance, bear
interest at such fixed or variable rate or rates, be payable at such
time or times, be in such denominations, be in such form, either
coupon or registered, carry such registration privileges, be executed
in such manner, be payable in lawful money of the United States of
America, at such place or places, and be subject to such terms of
redemption as the resolution or resolutions of the local agency may
provide. The bonds may be sold at either a public or private sale and
for such prices as the local agency shall determine. Pending
preparation of the definitive bonds, the local agency may issue
interim receipts, certificates, or temporary bonds, which shall be
exchanged for such definitive bonds. The local agency may sell any
bonds, notes, or other evidence of indebtedness at a price below the
par value thereof, but the discount on any bond so sold shall not
exceed 6 percent of the par value thereof.
37932. Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions respecting any of the following
terms and conditions, which shall be a part of the contract with the
holders of the bonds:
(a) The pledge of all or any part of the revenues, as defined in
this part, subject to such agreements with bondholders as may then
exist.
(b) The interest and principal to be received and other charges to
be charged and the amounts to be raised 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 purposes to which the proceeds of a sale of
any issue of bonds, then or thereafter issued, may be applied, and
pledging such proceeds to secure the payment of the bonds or any
issue of bonds.
(e) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured, and the
refunding of outstanding bonds.
(f) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which such
consent may be given.
(g) Limitation on expenditures for operating, administration, or
other expenses of the local agency.
(h) Specification of the acts or omissions to act which shall
constitute a default in the duties of the local agency to holders of
its obligations, and providing the rights and remedies of such
holders in the event of default.
(i) The mortgaging of any residence and the site thereof for the
purpose of securing the bondholders.
(j) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
37933. Neither the members of the governing board of the local
agency 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.
37934. The local agency shall have the power out of any funds
available therefor to purchase its bonds or notes. The local agency
may hold, pledge, cancel, or resell such bonds, subject to and in
accordance with agreements with the bondholders.
37935. In the discretion of the local agency, any bonds issued
under the provisions of this part may be secured by a trust agreement
by and between the local agency and a corporate trustee or trustees,
which may be any trust company or bank having the powers of a trust
company within or without this state. Such trust agreement or the
resolution providing for the issuance of such bonds may pledge or
assign the revenues to be received or proceeds of any contract or
contracts pledged, and may convey or mortgage any residence the
rehabilitation, construction, or acquisition of which is to be
financed out of the proceeds of such bonds. Such trust agreement or
the resolution providing for the issuance of the bonds may provide
for the assignment to such corporate trustee or trustees of loans,
deeds of trust, or mortgages, to be held by such trustee or trustees
on behalf of the local agency for the benefit of the bondholders.
Such trust agreement or resolution providing for the issuance of
bonds may contain such 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 such provisions as may
be included in any resolution or resolutions of the local agency
authorizing the issuance of bonds pursuant to Section 37932. Any bank
or trust company doing business under the laws of this state which
may act as depositary of the proceeds of bonds or of revenues or
other moneys may furnish such indemnity bonds or pledge such
securities as may be required by the local agency. Any such 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 to the foregoing, any such
trust agreement or resolution may contain such other provisions as
the local agency may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions
of such trust agreement or resolution may be treated as a part of
the cost of residential rehabilitation.
37936. Any holder of bonds issued under the provisions of this part
or any of the coupons appertaining thereto, and the trustee or
trustees appointed pursuant to any resolution authorizing the
issuance of such bonds, except to the extent the rights thereof may
be restricted by the resolution authorizing the issuance of the
bonds, may, either at law or in equity, by suit, action, mandamus, or
other proceedings, protect or enforce any and all rights specified
in the laws of the state or in such resolution, and may enforce and
compel the performance of all duties required by this part or by such
resolution to be performed by the local agency or by any officer,
employee, or agent thereof, including the fixing, charging, and
collecting of rates, fees, interest, and charges authorized and
required by the provisions of such resolution to be fixed,
established, and collected.
37937. Bonds issued under the provisions of this part shall not be
deemed to constitute a debt or liability of the local agency or a
pledge of the faith and credit of the local agency, but shall be
payable solely from the funds specified in this part. All such bonds
shall contain on the face thereof a statement to the following
effect:
Neither the faith and credit nor the taxing power of the