§ 91535. — 91535. (Amended by Stats. 1987, Ch. 1109, Sec. 8.)

California § 91535.

• Jurisdiction: California
• Code GOV: Government Code - GOV
• Title 10.: TITLE 10. CALIFORNIA INDUSTRIAL DEVELOPMENT FINANCING ACT
• Ch. 1.: CHAPTER 1. California Industrial Development Financing
• Art. 2.: ARTICLE 2. Industrial Development Authorities

Text

(a)
All bonds issued by an authority in connection with a project shall be special obligations, only, of the authority, payable solely out of the revenues or out of the other sources specified in the proceedings.
(b)
The bonds prescribed by subdivision (a) may:
(1)
Be executed and delivered by the authority at any time and from time to time;
(2)
Be in such type and denominations and of such terms and maturities;
(3)
Be in registered or bearer form either as to principal or interest or both and carry such conversion and reconversion privileges;
(4)
Be payable as term bonds or in such installments and at such time or times not exceeding 40 years from the date thereof;
(5)
Be payable in such mediums and at such place or places within or without the state;
(6)
Be sold below par or face value thereof, but the sale price of tax-exempt bonds shall not be less than 95 percent of the par or face value of the bond;
(7)
Be exchangeable for, or issuable in lieu of, such bonds;
(8)
Be issuable in temporary form pending preparation of and exchange for definitive bonds; and
(9)
Be executed by such officers, be authenticated, and contain such provisions not inconsistent with this article; all as shall be provided in the proceedings.
(c)
If deemed advisable by the board, there may be retained in or granted by the proceedings an option to redeem or to cause to be redeemed prior to maturity all or any part of any bonds as may be specified in the proceedings, at the price or prices and after any notice or notices and on any terms and conditions which may be set forth in the proceedings and as may be briefly recited in the bond. Nothing in this title shall be construed to confer on an authority or any bondholder or trustee any right or option to redeem or cause the redemption of any bonds, except as may be provided in the proceedings under which they shall have been issued.
(d)
Issuance by an authority of one or more issues of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same project or any other project, subject to any agreements with bondholders which may then exist.
(e)
Any bonds of an authority at any time outstanding may at any time, and from time to time, be refunded, including the payment of any redemption premium and accrued interest to the date of redemption, by an authority by the issuance of its refunding bonds in any amount which the board may deem necessary or appropriate. Bonds may be issued as one issue for refunding and other authorized purposes. Any refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds to the payment, purchase or redemption of the bonds to be refunded thereby or to the deposit or investment in securities or obligations yielding amounts sufficient to pay or redeem the bonds to be refunded thereby, or by the exchange of the refunding bonds for the bonds to be refunded thereby or bonds and claims with the consent of the holders of the bonds so to be refunded and with such cash or property adjustments as may be agreed, and regardless of whether or not the bonds proposed to be refunded shall be payable at the same date or different dates or shall be due serially or otherwise.
(f)
Each bond shall be deemed to be an investment security under the Uniform Commerical Code and a negotiable instrument, subject only to any provisions thereof for registration or other provisions restricting transfer, and shall be deemed to have been issued for an authorized purpose of the authority in exercise of the powers granted by this article, provided that the board so determines in the proceedings and the determination is recited in the bond.

Legislative History

Amended by Stats. 1987, Ch. 1109, Sec. 8. Effective September 25, 1987.