BondsRevenue Bonds

Section § 22850

Explanation

This section allows airport districts in California to borrow money and issue revenue bonds to fund public improvements. The revenue bonds are unique in that they are not backed by the general funds of the district or any other public agency, but instead, are paid back through specific revenues and funds linked to the airport improvements. In plain terms, the district can't dip into its regular budget or other agencies' budgets to pay these bonds. Instead, the repayment is tied to the money they make from the improvements financed by the bonds. Each bond must clearly state that it's issued under this specific law.

In addition to any other powers of the district to finance improvements and to provide an independent method of financing from that contained in any other sections of the California Airport District Act, subject to the provisions of this article a district may borrow money to provide funds to pay all costs of any public improvement authorized by this part and may issue revenue bonds to evidence the indebtedness created by such borrowing.
Such revenue bonds shall constitute special obligations and evidence a special indebtedness of the district which shall be a charge upon and payable as to the principal thereof, interest thereon, and any premiums upon the redemption of any thereof, solely from such revenues and funds as are specified therein and in the proceeding for their issuance. They shall not constitute general obligations of the district, and they shall neither constitute obligations nor evidence any indebtedness of any other public agency of which the district may be a part or of the State.
All such bonds shall recite upon their face the substance of the preceding portions of this section and shall also recite upon their face that they are issued under this article.
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Section § 22851

Explanation

This law states that revenue bonds must be approved, created, and sold according to the rules set out in the Revenue Bond Law of 1941. This means there is a specific procedure for handling these bonds that must be followed.

Revenue bonds under this article shall be authorized, issued and sold under the provisions of the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300), Part 1, Division 2, Title 5, Government Code).
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