The Economic Recovery Bond ActGeneral Provisions

Section § 99050

Explanation

This law, called the Economic Recovery Bond Act, allows the government to issue bonds as a way to fund important programs like public education and essential health and safety services. The purpose is to provide financial resources during a state budget deficit, ensuring these critical programs continue to operate efficiently and fairly.

(a)CA Government Code § 99050(a) This title shall be known and may be cited as the Economic Recovery Bond Act.
(b)CA Government Code § 99050(b) The Legislature finds and declares that it is essential to the public welfare that an efficient, equitable, and alternative source of funding be established in order to preserve public education and critical health and safety programs that otherwise could not be funded in light of the accumulated state budget deficit, and that securing the availability of the proceeds of the bonds proposed to be issued and sold pursuant to this title is the most efficient, equitable, and economical means available.
Economic Recovery Bond Act public welfare state budget deficit ...

Section § 99051

Explanation

This section defines several important terms used within a specific part of California law. An "accumulated state budget deficit" is a financial shortfall, defined according to the state constitution and confirmed by the Director of Finance. "Ancillary obligations" refer to additional financial commitments related to bonds, such as insurance or investment contracts, aimed at managing bond sales efficiently.

The "Committee" and "Fund" refer to the Economic Recovery Financing Committee and Economic Recovery Fund, respectively, which are established to manage financial aspects of economic recovery. A "Resolution" outlines the rules and assurances for issuing these bonds, while "Trustee" refers to either the state Treasurer or other financial institutions that oversee the bond issues.

As used in this title, the following terms have the following meanings:
(a)Copy CA Government Code § 99051(a)
(1)Copy CA Government Code § 99051(a)(1) “Accumulated state budget deficit” has the same meaning as in Section 1.3 of Article XVI of the California Constitution.
(2)CA Government Code § 99051(a)(2) The amount referred to in paragraph (1) shall be as certified by the Director of Finance.
(b)CA Government Code § 99051(b) “Ancillary obligation” means an obligation of the state entered into in connection with any bonds issued under this title, including the following:
(1)CA Government Code § 99051(b)(1) A credit enhancement or liquidity agreement, including any credit enhancement or liquidity agreement in the form of bond insurance, letter of credit, standby bond purchase agreement, reimbursement agreement, liquidity facility, or other similar arrangement.
(2)CA Government Code § 99051(b)(2) A remarketing agreement.
(3)CA Government Code § 99051(b)(3) An auction agent agreement.
(4)CA Government Code § 99051(b)(4) A broker-dealer agreement or other agreement relating to the marketing of the bonds.
(5)CA Government Code § 99051(b)(5) An interest rate or other type of swap or hedging contract.
(6)CA Government Code § 99051(b)(6) An investment agreement, forward purchase agreement, or similar structured investment contract.
(c)CA Government Code § 99051(c) “Committee” means the Economic Recovery Financing Committee created pursuant to Section 99055.
(d)CA Government Code § 99051(d) “Fund” means the Economic Recovery Fund created pursuant to Section 99060.
(e)CA Government Code § 99051(e) “Resolution” means any resolution, trust agreement, indenture, certificate, or other instrument authorizing the issuance of bonds pursuant to this title and providing for their security and repayment.
(f)CA Government Code § 99051(f) “Trustee” means the Treasurer or a bank or trust company within or without the state acting as trustee for any issue of bonds under this title and, if there is more than one issue of bonds, the term means the trustee for each issue of bonds, respectively. If there are cotrustees for an issue of bonds, “trustee” means those cotrustees collectively.
accumulated state budget deficit Director of Finance ancillary obligation ...