This section defines key terms related to bonds and pledges. ‘Bonds’ refer to various forms of debt instruments not specifically governed by other laws. ‘Collateral’ includes any type of revenue or rights to payment that are pledged. A ‘pledge document’ is any agreement that outlines the provision or creation of a pledge. A ‘pledge’ itself creates a security interest or lien on the collateral mentioned in the document. ‘Public body’ refers to state entities like cities and counties that can issue bonds, excluding private or nonprofit entities. ‘Security interest’ means having a first claim on the pledged revenues and rights unless stated otherwise in the document.

This law explains that when a public body, like a city or county, uses assets as collateral to secure bonds or agreements related to bonds, the pledge is valid right from when it is made. This pledge is legally binding and protects those who are supposed to benefit from it, according to the terms laid out in the pledge document.

Furthermore, the assets pledged become subject to the pledge immediately, creating a legal claim or lien on them. This lien is effective, enforceable, and applies to everyone, including future owners of the collateral or creditors, without any need for physical steps like delivering or recording the document.

This law secures the West Contra Costa Healthcare District's debts linked to certificates of participation issued between June 8, 2004, and December 31, 2012, by a statutory lien on revenues from parcel taxes approved by Measure D in 2004. The lien happens automatically without any district actions and is valid from the time the certificates are issued. The parcel tax revenue is immediately bound by the lien, making it enforceable against the district, successors, purchasers, and creditors without any physical acts like filing or notification.

This law explains that the Palm Drive Health Care District's debts from certificates of participation or revenue bonds issued between 2005 and 2014 are backed by a statutory lien on revenues generated from parcel taxes. The voters approved these taxes through Measure W in 2004.

The lien on the parcel tax revenue is automatic, requiring no additional action from the district or its directors. It becomes valid and binding as soon as the debt instruments are issued.

Once the lien is in place, it attaches to the tax revenue and is enforceable against the district, its future entities, buyers of the revenue, creditors, and anyone else. This applies even if they aren't aware of the lien, and no further filing or documentation is needed to enforce it.

This law explains that the City of Alameda Health Care District must use revenue from parcel taxes, approved by Measure A in 2002, to secure any financial agreements called certificates of participation made between 2024 and 2034. These agreements are mainly for funding construction projects, not daily operations. The law automatically creates a lien, or claim, on the parcel tax revenue as soon as the agreements are made. This lien is immediately valid and enforceable against anyone, without needing any paperwork or other formalities.

This section clarifies that no part of the chapter it's in gives permission to create new bonds or raise the amount of authority to issue existing bonds.