ARTICLE 4. Limited Obligation Bonds

Article 4 added by Stats. 1985, Ch. 320, Sec. 2.

§§ 50665.1–50670.4 · 57 sections

§ 50665.1 As used in this article: (a) “Local agency” means any county, city, or city and county, including a chartered city, or special district, including a school…
§ 50665.2 Limited obligation bonds may be issued for the acquisition, installation, construction, or improving of any or all public works or improvements which the local…
§ 50665.3 In determining the amount of bonds to be issued, the legislative body may include: (a) All costs and estimated costs incidental to or connected with the…
§ 50665.4 Proceedings are initiated when the legislative body passes an initiating resolution by a majority vote of all its members.
§ 50665.5 For all local agencies, the initiating resolution shall recite each of the following: (a) That the initiating resolution is being adopted pursuant to the…
§ 50665.6 The initiating resolution shall be published once in a newspaper of general circulation in the local agency. If there is no such newspaper, it shall be posted…
§ 50665.7 The bonds and the resolution providing for their issuance shall state that the bonds are limited obligation bonds payable solely from revenues of the local…
§ 50665.8 The proposition for incurring a bonded debt shall be submitted to the qualified voters of the local agency at an election held for that purpose. The election…
§ 50665.9 A proposition to be submitted to the voters of a local agency for approval of the issuance of limited obligation bonds shall state that the bonds are limited…
§ 50665.10 Except as otherwise provided in the initiating resolution, any election required under this article shall be conducted as other elections of the local agency.
§ 50665.11 When two or more propositions for incurring indebtedness are submitted at the same election, the votes cast for and against each proposition shall be counted…
§ 50665.12 If two-thirds of the voters voting on a proposition initiated pursuant to this article vote for it, the legislative body may, by majority vote, adopt a…
§ 50665.13 The bonds shall bear interest at a rate or rates not exceeding the maximum rate authorized by Section 53531, may be payable at the time or times, may be in one…
§ 50665.14 The bonds are special obligations of the local agency and shall be a charge against and are secured by a lien upon and shall be payable, as to the principal…
§ 50666 By resolution, the legislative body may pledge, place a charge upon, and assign all or any part of the revenues for the security of the bonds.
§ 50666.1 The payment of interest on and principal of the bonds and any premiums upon the redemption of any thereof are secured by an exclusive pledge, charge, and lien…
§ 50666.2 The revenues and any interest earned on the revenues constitute a trust fund for the security and payment of the interest on and principal of the bonds.
§ 50666.3 So long as any bonds or interest thereon are unpaid following their maturity, the revenues and interest thereon shall not be used for any other purpose.
§ 50666.4 If the interest and principal of the bonds and all charges to protect or secure them are paid when due, an amount or amounts for other purposes may be…
§ 50666.5 Bonds of the same issue shall be equally secured by a pledge, charge, and lien upon the revenues specified in the resolution authorizing the issuance of the…
§ 50666.6 The general fund of a local agency is not liable for the payment of the bonds or their interest.
§ 50666.7 The general credit or taxing power of the local agency, other than the revenues pledged, is not liable for the payment of the bonds or their interest.
§ 50666.8 The holder of the bonds shall not compel the exercise of the taxing power by the local agency, other than the revenues pledged, or the forfeiture of its…
§ 50666.9 The principal of, and interest on, the bonds and any premiums upon the redemption of any thereof are not a debt of the local agency, nor a legal or equitable…
§ 50667 Every bond shall recite in substance that the principal of, and interest on, the bond are payable solely from the revenues pledged to the payment of the…
§ 50667.1 The bonds and, any interest on, or income from, the bonds are exempt from taxation in this state, except from bank and corporation franchise, gift,…
§ 50667.2 In the resolution authorizing the bonds, the legislative body may insert any of the provisions authorized by this article, which shall become a part of the…
§ 50667.3 The legislative body may provide limitations on: (a) The purpose to which the proceeds of sale of any issue of bonds may be applied. (b) The issuance of…
§ 50667.4 The legislative body may provide for events of default and terms upon which the bonds may be declared due before maturity and the terms upon which the…
§ 50667.5 The legislative body may provide for the rights, liabilities, powers, and duties arising upon the local agency’s breach of any covenants, conditions, or…
§ 50667.6 The legislative body may provide for the vesting in a trustee of the right to enforce covenants to secure payment of, or in relation to, the bonds and the…
§ 50667.7 The legislative body may provide for the terms upon which the bondholders or any percentage of the bondholders may enforce covenants or duties imposed by this…
§ 50667.8 The legislative body may provide in the resolution authorizing issuance of the bonds for a procedure for amending or abrogating the terms of the resolution…
§ 50667.9 Any resolution containing a procedure specified in Section 50667.8 may also provide for meetings of bondholders or for their written assent without a meeting…
§ 50668 The resolution shall specifically state the effect of amendment upon the rights of the holders of all of the bonds and shall be binding upon the holders of all…
§ 50668.1 The legislative body may provide for any other acts and things necessary, convenient, or desirable to secure the bonds or tending to make them more marketable.
§ 50668.2 The local agency shall pay or cause to be paid the principal and interest of the bonds on the date, at the place, and in the manner mentioned in the bonds and…
§ 50668.3 A separate, distinct, and special fund shall be created at or before the issuance of the bonds, which shall be maintained continuously during the time that any…
§ 50668.4 All pledged revenue shall be deposited in the special fund and payments shall be made therefrom in the order specified in subdivisions (a) to (c), inclusive,…
§ 50668.5 The local agency shall preserve and protect the security of the bonds and the rights of the bondholders and shall warrant and defend the rights of the…
§ 50668.6 In order to fully preserve and protect the priority and security of the bonds the local agency shall pay and discharge all lawful claims for labor, materials,…
§ 50668.7 The local agency shall hold in trust the revenues pledged to the payment of the principal of and interest on the bonds for the benefit of the bondholders and…
§ 50668.8 The local agency may invest funds held in reserve, or in any sinking fund, or funds not required for immediate disbursement, in property or securities in which…
§ 50668.9 The local agency shall keep proper books of record and accounts of the revenues, separate from all other records and accounts, in which complete and correct…
§ 50669 At all times, the books shall be subject to the inspection of the holders of not less than 10 percent of the outstanding bonds or their representatives…
§ 50669.1 The local agency shall cause to be published a summary statement showing the amount of revenues collected which are required as security for payment of the…
§ 50669.2 The statement shall be published annually, not more than 120 days after the close of each fiscal year. The local agency shall furnish a copy of the statement…
§ 50669.3 In the resolution authorizing the bonds, the local agency may agree that the statement shall be prepared or audited by an independent certified public…
§ 50669.4 The duties set forth in this article do not require the local agency to expend any funds other than revenues pledged to secure payment of the principal of or…
§ 50669.5 A fiscal or paying agent may be appointed as now, or hereafter, provided in Article 7 (commencing with Section 54550) of Chapter 6 of Division 2 of Title 5.
§ 50669.6 A validating proceeding may be conducted as now, or hereafter, provided in Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil…
§ 50669.7 Bondholders shall have the remedies as now, or hereafter, provided in Article 10 (commencing with Section 54640) of Chapter 6 of Division 2 of Title 5.
§ 50669.8 The bonds may be refunded in the manner now, or hereafter, provided in Article 11 (commencing with Section 54660) of Chapter 6 of Division 2 of Title 5.
§ 50670 All bonds issued in pursuance of the provisions of this article shall by their issuance be conclusive evidence of the regularity, validity, and legal…
§ 50670.1 Any action, suit, or proceeding of any kind or nature in which the validity of any of the proceedings taken under the provisions of this article is questioned…
§ 50670.3 This article provides an alternative authority and procedure for the subject to which it relates but does not affect any other law relating to the same or a…
§ 50670.4 This article and all of its provisions shall be liberally construed to the end that the purposes of this article may be effective. If any section, subdivision,…