130530-130545
PUBLIC UTILITIES CODE
SECTION 130530-130545
130530. The commission may issue bonds for purposes authorized by
this chapter, and to fund or refund them, pursuant to this chapter.
130531. Notwithstanding any other provision of law:
(a) The commission and its revenues are exempt from all taxes on,
or measured by, income.
(b) Bonds issued by the commission are exempt from all property
taxation, and the interest on the bonds are exempt from all taxes on
income.
(c) All property owned by the commission is exempt from property
taxes, assessments, and other public charges secured by liens.
130532. The commission may from time to time issue or renew notes
in anticipation of the sale of bonds or otherwise. The commission may
also issue notes partly to renew notes or to discharge any other
outstanding obligation and partly for any other purpose. Notes may be
authorized, sold, and delivered in the same manner as bonds. Any
resolution of the commission authorizing notes may contain any
provision which the commission may include in any resolution
authorizing bonds, and the commission may include in the notes any
terms, covenants, or conditions which it may include in bonds. Notes
shall be paid from any revenues of the commission or other money
available therefor and not otherwise pledged, or from the proceeds of
the sale of the bonds in anticipation of which the notes were
issued, subject to any contractual rights of the holders of any
outstanding notes or other obligations.
130533. (a) Except as provided in this subdivision and as may be
otherwise expressly provided by the commission, all issues of its
bonds are special obligations of the commission payable from any
revenues or money of the commission available therefor and not
otherwise pledged, subject only to any agreement with the holders of
particular bonds pledging any particular revenues or money. However,
the commission may not pledge revenues or money from the following
sources: federal funds provided under Sections 1602 and 1607a of
Title 49 of the United States Code, funds allocated pursuant to
subdivisions (a) and (b) of Section 99312 from a state transit
assistance fund created pursuant to Section 99313.6, funds allocated
from the Transportation Planning and Development Account in the State
Transportation Fund, funds subject to Article XIX of the California
Constitution, and funds provided pursuant to the Mills-Alquist-Deddeh
Act (Chapter 4 (commencing with Section 99200) of Part 11 of
Division 10).
(b) The commission may not pledge any of its revenue derived from
the retail transactions and use tax which have been allocated to a
city pursuant to the ordinance adopted pursuant to Section 130350,
unless the city has authorized the pledging of its allocation.
(c) Notwithstanding that the bonds may be payable from a special
fund, they are for all purposes negotiable instruments, subject only
to the provisions of the bonds for registration.
130534. (a) The bonds may be issued as serial bonds or as term
bonds, or the commission, in its discretion, may issue bonds of both
types.
(b) The bonds shall be authorized by resolution of the commission
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
rate or rates, be payable at the time or times, be in the
denominations, be in registered form, carry the registration
privileges, 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, as the resolution or resolutions may
provide.
(c) The bonds may be sold at public or private sale, and for the
price or prices and on the terms and conditions as determined by the
commission.
(d) Pending preparation of the bonds, the commission may issue
interim receipts, certificates, or temporary bonds which shall be
exchanged for the bonds. The commission may sell any bonds at a price
below the par value thereof without any limitation on price.
130535. (a) At times that the commission desires to issue bonds, it
shall adopt a resolution specifying the total amount of bonds
proposed to be issued.
(b) Any resolution authorizing any bonds, or any issue of bonds,
shall, to the extent applicable, contain provisions, which are a part
of the contract with the holders of the bonds to be authorized, as
to the following:
(1) Pledging all or any part of the revenues of any project or any
revenue-producing contract or contracts made by the commission with
any individual, partnership, corporation, or association or other
body, public or private, or other money of the commission, to secure
the payment of the bonds or of any particular issue of bonds, subject
to any agreement with bondholders that may then exist.
(2) The rentals, fees, fares, purchase 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 purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
(5) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(6) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds that
the holders of which are required to consent thereto, and the manner
in which the consent may be given.
(7) Limitations on expenditures for operating, administrative, or
other expenses of the commission.
(8) Defining the acts or omissions to act which constitute a
default in the duties of the commission to bondholders of the
commission's obligations, and providing the rights and remedies of
the bondholders in the event of a default.
(9) The mortgaging of any project, or any part thereof, for the
purpose of securing the bondholders.
(10) The terms and conditions of the sale, whether public or
private, including, but not limited to, the price, interest rates,
terms to maturity, security arrangements, and any other terms and
conditions which the commission deems necessary under the
circumstances.
130536. Neither the members of the commission, nor any person
executing the bonds, are liable personally on the bonds, or are
subject to any personal liability or accountability by reason of the
issuance thereof.
130537. The commission may, from any funds available therefor,
purchase its bonds. The commission may hold, pledge, cancel, or
resell the bonds, subject to, and in accordance with, agreements with
the bondholders.
130538. (a) At the discretion of the commission, any bonds issued
under this chapter may be secured by a trust agreement by and between
the commission and a trustee, which may be any trust company or bank
having the powers of a trust company within or without the state.
(b) The trust agreement, or the resolution providing for the
issuance of the bonds, may pledge or assign the revenues to be
received or the proceeds of any contract pledged and may convey or
mortgage the project, or any portion thereof, to be financed out of
the proceeds of the bonds. The trust agreement, or resolution
providing for the issuance of the bonds, may contain 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 particularly provisions specifically authorized to be
included in any resolution of the commission authorizing bonds.
(c) Any bank or trust company which does business under the laws
of the United States or of this state, which has its principal place
of business in this state, and which may act as depository of the
proceeds of bonds or of revenues or other moneys may furnish
indemnifying bonds or pledge securities as may be required by the
commission.
(d) Any trust agreement may set forth the rights and remedies of
the bondholders and of the trustee, and may restrict the individual
right of action by bondholders. In addition, any trust agreement or
resolution may contain other provisions that the commission may deem
reasonable and proper for the security of the bondholders.
130538.5. The commission shall take no action which will materially
impair the security pledged for any bonds which it has previously
issued.
130539. All expenses incurred in carrying out the provisions of the
trust agreement or resolution may be treated as a part of the cost
of the operation of a project.
130540. (a) Bonds issued under this chapter do not constitute a
debt or liability of the state or of any other public agency, other
than the commission, or a pledge of the faith and credit of the state
or of any other public agency, other than the commission, but shall
be payable solely from the funds provided therefor. All the 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 public agency, other than the Los Angeles County
Transportation Commission, is pledged to the payment of the principal
of, or interest on, this bond."
(b) The issuance of bonds under this chapter does not in any
manner obligate the state or any other public agency thereof to levy,
or to pledge any form of, taxation therefor or to make any
appropriation for their payment.
130541. The commission may provide for the issuance of bonds of the
commission for the purpose of refunding any bond 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 the bonds and, if deemed
advisable by the commission, 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. The commission may issue refunding bonds to refinance its
indebtedness only if the commission finds that the refunding is in
the public interest due to the terms or conditions of the refunding,
including, without limitation, lower net interest cost, maturity or
maturities, call provisions, or similar terms and conditions.
130542. (a) The proceeds of any bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the commission,
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 such application, be placed in escrow to be
applied to the purchase or retirement at maturity or redemption on
the date as may be determined by the commission.
(b) Pending that use, the escrowed proceeds may be invested and
reinvested by the commission or its trustee in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing at a time or times
appropriate to ensure the prompt payment of 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 the 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 the
proceeds and interest, income, and profits, if any, earned or
realized on the investments thereof may be returned to the commission
for use by it in any lawful manner.
130543. The proceeds of any bonds issued 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 may
be invested and reinvested by the commission or its trustee in
obligations of, or guaranteed by, the United States of America, or in
certificates of deposit or time deposits secured by obligations of,
or guaranteed by, the United States of America, maturing not later
than the time or times when the proceeds will be needed for the
purpose of paying all or any part of the cost. The interest, income,
and profits, if any, earned or realized on the investment may be
applied to the payment of all or any part of the cost or may be used
by the commission in any lawful manner.
130544. Bonds issued pursuant to Section 130542 are subject to this
chapter in the same manner and to the same extent as other bonds
issued pursuant to this chapter.
130545. The bonds issued pursuant to this chapter are legal
investments for all trust funds, the funds of all insurance
companies, commercial or savings banks, trust companies, savings and
loan associations, and investment companies, for executors,
administrators, guardians, conservators, trustees, and other
fiduciaries, for state school funds, and for any funds which may be
invested in county, municipal, or school district bonds. The bonds
are securities which may properly and legally be deposited with, and
received by, any state or municipal officer or any public agency for
any purpose for which the deposit of bonds or obligations of the
state is now, or may hereafter be, authorized by law, including
deposits to secure public funds.