<< Return to main menu

HEALTH AND SAFETY CODE
SECTION 33775-33784

33775. (a) An agency may, from time to time, issue its negotiable
revenue bonds for the purpose of making or purchasing mortgage or
construction loans, or making loans to qualified mortgage lenders, to
finance residential construction. In anticipation of the sale of
bonds, the agency may issue negotiable bond anticipation notes and
may renew the notes from time to time. Bond anticipation notes may be
paid from the proceeds of sale of the bonds of the agency in
anticipation of which they were issued. Bond anticipation notes and
agreements relating thereto and the resolution or resolutions
authorizing the notes and agreements may contain any provisions,
conditions, or limitations which a bond, agreement relating thereto,
or bond resolution of the agency may contain except that any note or
renewal thereof shall mature at a time not later than five years from
the date of the issuance of the original note.
(b) Every issue of its revenue bonds shall be a special obligation
of the redevelopment agency payable from all or any part of the
revenues specified in this chapter. The revenue bonds shall be
negotiable instruments for all purposes, subject only to the
provisions of the bonds for registration.

33775.5. In determining the amount of bonds to be issued, the
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 issuance of the
bonds.

33776. The revenue bonds may be issued as serial bonds or as term
bonds, or the redevelopment agency, in its discretion, may issue
revenue bonds of both types. The revenue bonds shall be authorized
by resolution of the 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
redevelopment agency may provide. The bonds may be sold at either a
public or private sale and for such prices as the agency shall
determine. Pending preparation of the definitive bonds, the agency
may issue interim receipts, certificates, or temporary bonds, which
shall be exchanged for such definitive bonds.

33777. Any resolution or resolutions authorizing any revenue bonds
or any issue of revenue 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 revenue bonds:
(a) The pledge of all or any part of the revenues, 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 revenue bonds, then or thereafter issued, may be
applied, and pledging such proceeds to secure the payment of the
revenue bonds or any issue of revenue bonds.
(e) Limitations on the issuance of additional revenue bonds, the
terms upon which additional revenue bonds may be issued and secured,
and the refunding of outstanding revenue bonds.
(f) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of revenue 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 agency.
(h) Specification of the acts or omissions to act which shall
constitute a default in the duties of the redevelopment agency to
holders of its revenue bonds, 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.

33777.5. When not immediately required to provide financing under
this chapter, revenues and the proceeds of revenue bonds may be
invested in any securities or obligations authorized by the
resolution providing for issuance of the bonds or authorized by its
trust indenture. Such investments may include mortgage obligations
on single-family dwellings purchased from a state or federally
chartered bank or savings and loan association pursuant to a
repurchase agreement under which the bank or savings and loan
association will repurchase the mortgage obligation on or before a
specified date and for a specified amount, provided that the mortgage
or the repurchase agreement shall be insured by a mortgage insurance
company licensed to insure mortgages in the State of California and
qualified to provide insurance on mortgages purchased by the Federal
Home Loan Mortgage Corporation or the Federal National Mortgage
Association.
The authority provided in this section is additional and
alternative to any other authorization for investments contained in
this part, including Section 33782, or in other provisions of law.


33778. Neither the members of the agency nor any person executing
the revenue bonds shall be liable personally on the revenue bonds or
be subject to any personal liability or accountability by reason of
the issuance thereof.


33779. The agency shall have the power out of any funds available
therefor to purchase its revenue bonds. The agency may hold, pledge,
cancel, or resell such revenue bonds, subject to and in accordance
with agreements with the bondholders.

33780. In the discretion of the agency, any revenue bonds issued
under the provisions of this chapter may be secured by a trust
agreement by and between the 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 a trust
agreement or the resolution providing for the issuance of revenue
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 construction of which is to be financed out of the
proceeds of such revenue bonds. Such trust agreement or the
resolution providing for the issuance of bonds may provide for the
assignment to such corporate trustee or trustees of mortgage or
construction loans or loans to qualified mortgage lenders, to be held
by such trustee or trustees on behalf of the agency for the benefit
of the bondholders. Such trust agreement or resolution providing for
the issuance of revenue 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 agency authorizing the issuance of the revenue
bonds. Any bank or trust company doing business under the laws of
this state which may act as depositary of the proceeds of revenue
bonds or of revenues or other moneys may furnish such indemnity bonds
or pledge such securities as may be required by the 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 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 construction.

33781. Any holder of revenue bonds issued under the provisions of
this chapter or any of the coupons appertaining thereto, and the
trustee or trustees appointed pursuant to any resolution authorizing
the issuance of such revenue bonds, except to the extent the rights
thereof may be restricted by the resolution authorizing the issuance
of the revenue 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 this state or in such resolution,
and may enforce and compel the performance of all duties required by
this chapter or by such resolution to be performed by the 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.

33782. Any agency may provide for the issuance of the revenue bonds
of the agency for the purpose of refunding any revenue bonds of the
agency then outstanding, or for the purpose of refunding any revenue
bonds of another political subdivision of the state then outstanding
pursuant to Section 33761, including the payment of any redemption
premiums thereof and any interest accrued or to accrue to the
earliest or subsequent date of redemption, purchase, or maturity of
the bonds, and, if both (a) deemed advisable by the agency, and (b)
projects financed with the bonds fall within the jurisdiction of the
agency, for the additional purpose of paying all or any part of the
cost of additional residential construction.
The proceeds of revenue bonds issued pursuant to this section may,
in the discretion of the agency, be applied to the purchase or
retirement at maturity or redemption of outstanding revenue bonds,
either at their earliest or any subsequent redemption date or upon
the purchase or retirement at the maturity thereof and, pending that
application, the portion of the proceeds allocated for that
purpose may be placed in escrow, to be applied to the purchase or
retirement at maturity or redemption on that date, as may be
determined by the agency. Pending use for purchase, retirement at
maturity, or redemption of outstanding revenue bonds, any proceeds
held in such an escrow may be invested and reinvested as provided in
the resolution authorizing the issuance of the refunding bonds. Any
interest or other increment earned or realized on any such investment
may also be applied to the payment of the outstanding revenue bonds
to be refunded. After the terms of the escrow have been fully
satisfied and carried out, any balance of the proceeds and any
interest or increment earned or realized from the investment thereof
may be returned to the agency to be used by it for any lawful purpose
under this chapter. That portion of the proceeds of any revenue
bonds issued pursuant to this section which is designated for the
purpose of paying all or any part of the cost of additional
residential construction may be invested and reinvested in
obligations of, or guaranteed by, the United States of America or in
certificates of deposit or time deposits secured by obligation 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.
All revenue bonds issued pursuant to this section shall be subject
to this chapter in the same manner and to the same extent as other
bonds issued pursuant to this chapter.

33783. Notwithstanding any other provision of law, revenue bonds
issued pursuant to this chapter shall be legal investments for all
trust funds, insurance companies, savings and loan associations,
investment companies and banks, both savings and commercial, and
shall be legal investments for executors, administrators, guardians,
conservators, trustees, and all other fiduciaries. Such bonds shall
be legal investments for state school funds and for any funds which
may be invested in county, municipal, or school district bonds, and
such bonds shall be deemed to be securities which may properly and
legally be deposited with, and received by, any state or municipal
officer or by any agency or political subdivision of the state 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.

33784. The exercise of the powers granted by this chapter shall be
in all respects for the benefit of the people of this state and for
their health and welfare. Any revenue bonds issued under the
provisions of this chapter, their transfer and the income therefrom,
shall at all times be free from taxation of every kind by the state
and by the municipalities and other political subdivisions of the
state, except inheritance and gift taxes.


--------------------------------------------------------------------------------


<< Return to main menu