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SECTION 33790-33799

33790. An agency may not finance mortgage or construction loans
which have not been authorized by prior written agreement between the
agency and the participating party. All agreements for such loans
shall provide that the architectural and engineering design of the
residential construction shall be subject to such standards as may be
established by the agency and that the work of such residential
construction shall be subject to such supervision as the agency deems

33791. An agency may enter into loan agreements with any
participating party relating to residential construction of any kind
or character. The terms and conditions of such loan agreements may
be as mutually agreed upon, but such terms and conditions shall not
be inconsistent with the provisions of this chapter or regulations
adopted pursuant thereto. Any such loan agreement may provide the
means or methods by which any mortgage taken by the agency shall be
discharged, and it shall contain such other terms and conditions as
the agency may require. An agency may fix, revise, charge and
collect interest and principal and all other rates, fees, and charges
with respect to financing of residential construction. Such rates,
fees, charges and interest shall be fixed and adjusted so that the
aggregate of such rates, fees, charges and interest will provide
funds sufficient with other revenues and moneys which it is
anticipated will be available therefor, if any, to all of the
(a) Pay the principal of, and interest on, outstanding revenue
bonds of the agency issued to finance such residential construction
as the same shall become due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing such revenue bonds. A sufficient amount of
the revenues derived from residential construction may be set aside
at such regular intervals as may be provided by the resolution in a
sinking or other similar fund, which is hereby pledged to, and
charged with, the payment of the principal of and interest on such
revenue bonds as the same shall become due, and the redemption price
or the purchase price of revenue bonds retired by call or purchase as
therein provided. Such pledge shall be valid and binding from the
time the pledge is made. The rates, fees, interest, and other
charges, revenues, or moneys so pledged and thereafter received by
the agency shall immediately be subject to the lien of such pledge
without any physical delivery thereof or further act, and the lien of
any such pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the
agency, irrespective of whether such parties have notice thereof.
Neither the resolution nor any loan agreement by which a pledge is
created need be filed or recorded except in the records of the
agency. The use and disposition of moneys to the credit of such
sinking or other similar fund shall be subject to the provisions of
the resolution authorizing the issuance of such revenue bonds.
Except as may otherwise be provided in the resolution, such sinking
or other similar fund may be a fund for all revenue bonds of the
agency issued to finance the construction of the residence of a
particular participating party without distinction or priority. The
agency, however, in any such resolution may provide that such sinking
or other similar fund shall be the fund for particular project or
projects of residential construction and for the bonds issued to
finance such project or projects and may, additionally, authorize and
provide for the issuance of revenue bonds having a lien with respect
to the security authorized by this section which is subordinate to
the lien of other revenue bonds of the agency, and in such case, the
agency may create separate sinking or other similar funds securing
the revenue bonds having the subordinate lien.
(c) Pay operating and administrative costs of the agency incurred
in the administration of the program authorized by this chapter.

33792. All moneys received pursuant to the provisions of this
chapter, whether revenues or proceeds from the sale of revenue bonds
or proceeds of mortgage insurance or guarantee claims, shall be
deemed to be trust funds to be held and applied solely for the
purposes of this chapter. Any bank or trust company in which such
moneys are deposited shall act as trustee of such moneys and shall
hold and apply the same for the purposes specified in this chapter,
subject to the terms of the resolution authorizing the revenue bonds.

33795. This chapter being necessary for the welfare of the state
and its inhabitants, shall be liberally construed to effect its

33796. If the jurisdiction of the agency to order a proposed act is
not affected, an omission of any officer or the agency in
proceedings under this chapter or any other defect in the proceedings
shall not invalidate the proceedings or revenue bonds issued
pursuant to this chapter.

33797. This chapter is full authority for the issuance of bonds by
an agency for the purpose of financing residential construction.

33798. This chapter shall be deemed to provide a complete,
additional, and alternative method for doing the things authorized
thereby, and shall be regarded as supplemental and additional to the
powers conferred by other laws. The issuance of revenue bonds and
refunding revenue bonds under the provisions of this chapter need not
comply with the requirements of any other law applicable to the
issuance of bonds.

33799. An action may be brought pursuant to Chapter 9 (commencing
with Section 860) of Title 10 of Part 2 of the Code of Civil
Procedure to determine the validity of any issuance or proposed
issuance of revenue bonds under this chapter and the legality and
validity of all proceedings previously taken or proposed in a
resolution of an agency to be taken for the authorization, issuance,
sale, and delivery of the revenue bonds and for the payment of the
principal thereof and interest thereon.


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