44540-44549
HEALTH AND SAFETY CODE
SECTION 44540-44549
44540. The authority is authorized to incur indebtedness and to
issue securities of any kind or class, and to renew the same,
provided that all such indebtedness, howsoever evidenced, shall be
payable solely from revenues of the authority.
44541. At such times as the authority desires to issue bonds, as
defined in Section 44542, it shall adopt a resolution specifying the
total amount of such bonds proposed to be issued.
44542. (a) (1) The authority is authorized from time to time to
issue its negotiable bonds, notes, debentures, or other securities
(hereinafter collectively called "bonds") for any corporate purpose.
These bonds may be authorized, without limiting the generality of the
foregoing, to finance a single project for a single participating
party, a series of projects for a single participating party, a
single project for several participating parties, or several projects
for several participating parties.
(2) In anticipation of the sale of the bonds as authorized by
Section 44540, or as may be authorized pursuant to Section 44541, the
authority may issue negotiable bond anticipation notes and may renew
the same from time to time. These bond anticipation notes may be
paid from the proceeds of sale of the bonds of the authority in
anticipation of which they were issued. Notes and agreements relating
thereto and bond anticipation notes, hereinafter collectively called
notes, and the resolution or resolutions authorizing the same may
contain any provisions, conditions, or limitations that a bond,
agreement relating thereto, and bond resolution of the authority may
contain, except that the note or renewal thereof shall mature at a
time not exceeding three years from the date of issue of the original
note.
(b) Except as may otherwise be expressly provided by the
authority, every issue of its bonds, notes, or other obligation shall
be general obligations of the authority payable from any revenues or
moneys of the authority available therefor and not otherwise
pledged, subject only to any agreements with the holders of
particular bonds, notes, or other obligations pledging any particular
revenues or moneys and subject to any agreements with any
participating party. Notwithstanding that bonds, notes, or other
obligations may be payable from a special fund, they shall be and be
deemed to be for all purposes negotiable instruments, subject only to
the provisions of the bonds, notes, or other obligations for
registration.
(c) The bonds may be issued as serial bonds or as term bonds, or
the authority in its discretion, may issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the fixed rate
or rates, or at the variable rates, including multiple methods of
setting rates from time to time while the bonds are outstanding, be
payable at the time or times, be in the denominations, be executed in
the manner, be payable in lawful money of the United States of
America at the place or places, and be subject to the terms of
redemption or tender, as resolution or resolutions may provide. The
bonds or notes shall be sold by the Treasurer as agent for sale. The
bond or notes may be sold at a public or private sale, and for the
price or prices and on terms and conditions, as the authority shall
determine after giving due consideration to the recommendations of
any participating party to be assisted from the proceeds of the bonds
or notes. Pending preparation of the definitive bonds, the Treasurer
may issue interim receipts, certificates, or temporary bonds which
shall be exchanged for definitive bonds. The Treasurer may sell any
bonds, notes, or other evidence of indebtedness at a price below the
par value thereof.
(d) Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain provisions, which shall be a part of the
contract with the holders of the bonds or any provider of credit
enhancement to be authorized, as to all of the following:
(1) Pledging the full faith and credit of the authority or
pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the authority with
any individual, partnership, corporation, or association or other
body, public or private, or other moneys of the authority, to secure
the payment of the bonds or of any particular issue of bonds, subject
to agreements with bondholders or any providers of credit
enhancement as may then exist.
(2) The rentals, fees, purchase payments, loan payments, and other
charges to be charged, and the amounts to be raised in each year
thereby, and the use and disposition of the revenues.
(3) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(4) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
bonds.
(5) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied and
pledging these proceeds to secure the payment of the bonds or any
issue of the bonds.
(6) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(7) 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
consent may be given.
(8) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
(9) Defining the acts or omissions to act that constitute a
default in the duties of the authority to holders of its obligations
and providing the rights and remedies of these holders in the event
of a default.
(10) The mortgaging of any project and the site thereof for the
purpose of securing the bondholders.
(11) The mortgaging of land, improvements, or other assets owned
by a participating party for the purpose of securing the bondholders.
(12) Provisions for the security of any provider of credit
enhancement supporting payment on the bonds, but only in a manner
subordinate to the rights of bondholders.
(e) Neither the members of the authority 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.
(f) The authority shall have power out of any funds available
therefor to purchase its bonds or notes without the cancellation
thereof. The authority may hold, pledge, cancel, or resell bonds,
subject to, and in accordance with, agreements with bondholders.
44543. (a) In the discretion of the authority, any bonds issued
under the provisions of this division may be secured by a trust
agreement by and between the authority and a trustee or trustees,
which may be any trust company or bank having the powers of a trust
company within or without the state. The trust agreement or the
resolution providing for the issuance of bonds may pledge or assign
the revenues to be received or proceeds of any contract or contracts
pledged and may convey or mortgage the project or projects, or any
portion thereof, to be financed out of the proceeds of bonds. The
trust agreement or resolution providing for the issuance of bonds may
contain provisions for protecting and enforcing the rights and
remedies of the bondholders, or any provider of credit enhancement,
as may be reasonable and proper and not in violation of law,
including particular provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof. Any bank or trust company doing
business under the laws of this state that may act as depository of
the proceeds of bonds or of revenues or other moneys may furnish
these indemnifying bonds or pledge securities as may be required by
the authority. Any 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 or any
provider of credit enhancement. In addition to the foregoing, any
trust agreement or resolution may contain other provisions as the
authority may deem reasonable and proper for the security of the
bondholders. Notwithstanding any other law, the Treasurer shall not
be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division.
(b) All expenses incurred in carrying out the provisions of a
trust agreement or resolution may be treated as a part of the cost of
the operation of a project.
44544. Bonds issued under the provisions of this division shall not
be deemed to constitute a debt or liability of the state or of any
political subdivision thereof, other than the authority, or a pledge
of the faith and credit of the state or of any such political
subdivision, other than the authority, but shall be payable solely
from the funds herein provided therefor. 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 State
of California or any local agency is pledged to the payment of the
principal of or interest on this bond."
The issuance of bonds under the provisions of this division shall
not directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing in this section contained shall prevent nor be
construed to prevent the authority from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this division.
44545. (a) The authority may provide for the issuance of bonds of
the authority for the purpose of refunding, directly or indirectly,
any bonds, notes, or other evidences of indebtedness of the authority
or a public agency then outstanding, including the payment of any
redemption premium thereon and any interest accrued or to accrue to
the earliest or subsequent date of redemption, purchase, or maturity
of these bonds, and, if deemed advisable by the authority, for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion thereof.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds, notes, or other securities may, in the discretion
of the authority, be applied to the purchase or retirement at
maturity or redemption of outstanding bonds either on their earliest
or any subsequent redemption date or upon the purchase or retirement
at the maturity thereof and may, pending application, be placed in
escrow to be applied to purchase or retirement at maturity or
redemption on a date as may be determined by the authority.
(c) Pending this use, any of these escrowed proceeds may be
invested and reinvested by the Treasurer or any trustee in
instruments as may be specified in the resolution or indenture
governing the bonds to be refunded, maturing at the time or times as
shall be appropriate to ensure the prompt payment, as to principal,
interest and redemption premium, if any, of the outstanding bonds to
be so refunded. The interest, income, and profits, if any, earned or
realized on this type of investment may also be applied to the
payment of the outstanding bonds to be so refunded. After the terms
of the escrow have been fully satisfied and carried out, any balance
of these proceeds and interest, income, and profits, if any, earned
or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.
(d) All of these bonds shall be subject to the provisions of this
division in the same manner and to the same extent as other bonds
issued pursuant to this division. If the authority refunds bonds or
evidences of indebtedness not originally issued by the authority, the
authority shall make findings that the project being refinanced
qualifies as a project under this division.
44548. (a) (1) Subject to any prior contractual obligations to any
of its bondholders, the authority may establish one or more small
business assistance funds in order to do any of the following:
(A) Assist small businesses to achieve financing of pollution
control facilities.
(B) Assist with the financing of the costs of, among other things,
assessment, remedial planning and reporting, technical assistance,
cleanup, remediation, and development of brownfield sites, and with
other similar or related costs, by providing loans pursuant to
subdivision (h) of Section 44526.
(C) Fund a capital access program for small businesses pursuant to
Article 8 (commencing with Section 44559).
(2) For the purpose of establishing and maintaining small business
assistance funds as it determines to be necessary or desirable to
secure its bonds or any issuance thereof or for other authorized
purposes, the authority, pursuant to its contracts with participating
parties, may levy fees or other charges on, or require deposits
from, participating parties receiving financing for a project under
this division. The total amount of these fees, charges, and deposits
with respect to a single issue of bonds shall not exceed 3 percent of
the principal amount of that issue of bonds.
(3) Prior to levying any fees or charges or requiring deposits,
the authority shall adopt regulations for the operation of the small
business assistance funds, the amounts and any payment schedule for
the fees, charges, or deposits, eligibility standards for small
businesses desiring to use or benefit from the small business
assistance funds, and any other matters the authority determines to
be necessary for the establishment and maintenance of small business
assistance funds. The regulations may provide for differential fees
from participating parties based upon the size of a project financed
by the authority or other factors determined to be relevant by the
authority, and the regulations may restrict any benefits to those
eligible small businesses specified in the regulations.
(4) The authority may transfer any funds available to it or set
aside for its administrative expenses to any small business
assistance fund established under this section.
(b) (1) The forms of financial assistance that the authority may
provide under this section include, but are not limited to all of the
following:
(A) Payments to reduce, but not eliminate, the interest rate on
loans.
(B) Payments of part or all of the cost of acquiring letters of
credit.
(C) Payments of part or all of the cost of acquiring insurance.
(D) Payments of part or all of the cost of acquiring guarantees.
(E) Payments of part or all of the cost of acquiring other forms
of credit support.
(F) Payments of part or all of the authority's expenses in issuing
revenue bonds or providing other assistance.
(2) The authority may also pledge any small business assistance
fund, on an individual or pooled basis, to repay, directly or
indirectly, the principal of, or interest or premium on, any issue of
bonds of the authority or any loan made or acquired pursuant to this
section.
(3) The authority may also use moneys in a small business
assistance fund to assist in the financing of the costs of assessment
of, remedial planning and reporting for, technical assistance for,
and the cleanup, remediation or development of, brownfield sites, and
of other similar or related costs, by providing loans, pursuant to,
and under the terms permitted by, subdivision (h) of Section 44526.
(4) In addition to other purposes set forth in this section, the
authority may use moneys in a small business assistance fund to make
or acquire loans or guarantee commercial loans to participating
parties eligible for assistance from those funds.
(5) Any moneys repaid or returned to the authority in connection
with or as a result of any loan or financial assistance made pursuant
to this section shall be deposited in the small business assistance
fund from which the loan or assistance was originally provided.
(6) The authority may contract with qualified financial
institutions, including, but not limited to, banks, investment and
mortgage bankers, insurance companies, sureties, and guarantors, to
provide any necessary assistance in the granting of credit for these
purposes.
(c) Each small business assistance fund established pursuant to
this section shall be deposited in a special account that the
Controller shall create. Notwithstanding any other provision of law,
and subject to any requirements of federal tax law or regulations
relative to maintaining the tax-exempt status of the obligations of
the authority, all interest or other gains earned by investment or
deposit of money in the special account pursuant to any provision of
Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code or pursuant to any other provision of law shall
be credited to, and deposited in, the account.
(d) In carrying out this section, the authority shall participate
with the air pollution control districts and air quality management
districts in providing financial assistance in its lending programs.
44549. Any funds of the authority, including proceeds from the sale
of bonds or notes issued after the effective date of this section,
money set aside for the authority's administrative expenses, and
small business assistance funds created under Section 44548, may be
invested in any obligations of any state or local government meeting
the requirements of subdivision (a) of Section 103 of the Internal
Revenue Code of 1954 (26 U.S.C. Sec. 103 (a)) including mutual funds,
trusts, and similar instruments representing a pool of obligations.
The Treasurer may adopt regulations providing appropriate investment
standards for these investments. If the Treasurer determines it to be
necessary to assure compliance with federal tax laws or regulations,
the authority may, notwithstanding any other provision of law,
deposit funds received as fees from the issuance of its obligations,
including small business assistance funds, with a bank or trust
company acting on behalf of the authority. Notwithstanding any other
provision of law, the authority may also make investments of moneys
set aside for the authority's administrative expenses or in any small
business assistance funds by making or purchasing interest-bearing
loans to qualified small businesses which are to be assisted pursuant
to Section 44548, or under terms and with such security as the
authority determines to be appropriate.