For purposes of this division, the authority may incur indebtedness and issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same,
if all such indebtedness, howsoever evidenced, shall be payable solely from revenues.
Chapter 5Bonds
Section § 3380.1
This section allows an authority to borrow money and issue financial instruments, like bonds, which the Treasurer can sell either publicly or privately.
Importantly, any debt incurred must be paid back using only the revenues generated by the authority.
incur indebtedness issue securities public sale private sale Treasurer revenue repayment financial instruments debt management bond issuance revenue generation financial authority debt renewal public finance financial obligations securities sale
Section § 3380.2
This law outlines the powers related to issuing bonds for financing various projects. The authority can issue bonds secured by pledged revenues for different projects, whether for single or multiple parties. These bonds can be sold publicly or privately, with the Treasurer handling the sale approval. The authority can also pledge revenues to secure these bonds. They are allowed to hire necessary financial and legal advisors to assist with the bond issuance process. Bonds can be reissued to manage debt efficiently, and the authority can take other actions that serve its purpose under this division. Additionally, they can seek financial assistance from specific funds.
In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:
(a)CA Public Utilities Code § 3380.2(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.
(b)CA Public Utilities Code § 3380.2(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.
(c)CA Public Utilities Code § 3380.2(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.
(d)CA Public Utilities Code § 3380.2(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.
(e)CA Public Utilities Code § 3380.2(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this
chapter.
(f)CA Public Utilities Code § 3380.2(f) Seek financial assistance from any entity eligible to access the California Transmission Accelerator Revolving Fund pursuant to Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7 of the Government Code.
bond issuance pledged revenues public or private sale Treasurer approval financial advisors refunding bonds project financing multiple enterprise financing single project financing debenture security liquidity facilities credit guarantees California Transmission Accelerator Revolving Fund financial assistance insurance obligations
Section § 3381
This law states that bonds issued by the authority are valid investments for a variety of financial entities and funds, such as insurance companies, banks, and pension funds. These bonds can be used for the same purposes as other authorized state bonds, like being deposited with state or local agencies to secure public funds.
Bonds issued by the authority are legal investments for all trust funds, the funds of all insurance companies, banks, both commercial and savings, trust companies, executors, administrators, trustees, and other fiduciaries, for state school funds, pension funds, and for any funds that may be invested in county, school, or municipal bonds. The bonds issued under this division are securities that may legally be deposited with, and received by, any state or municipal officer or agency or political subdivision of the state, including, without limitation, local agencies, schools, and pension funds, for any purpose for which the deposit of bonds or obligations of the state is now, or may hereafter be, authorized by law, including deposits to secure public funds.
legal investments authority bonds trust funds insurance companies investments bank investments pension funds fiduciaries state school funds municipal bonds security deposits state bonds local agencies public funds securities deposit
Section § 3382
This law allows the authority to take out loans from the Pooled Money Investment Account. The conditions of these loans are negotiated with the Pooled Money Investment Board and may involve using bond proceeds or revenue as collateral.
The authority is authorized to obtain loans from the Pooled Money Investment Account pursuant to Sections 16312 and 16313 of the Government Code. These loans shall be subject to the terms negotiated with the Pooled Money Investment Board, including, but not limited to, a pledge of authority bond proceeds or revenues.
Pooled Money Investment Account loans Pooled Money Investment Board bond proceeds revenue pledge loan terms collateral government loans financing authority investment funds public authority loans financial agreements loan negotiation
Section § 3383
This law says that bonds issued under this specific division are not considered a debt of the state or any local government, except for the authority issuing them. These bonds are only payable from specific funds set aside for this purpose. The bonds will clearly state that neither the state nor any local agency is backing them with their credit or tax power. This means the state or local governments are not responsible for paying these bonds with taxes or other money unless the authority itself decides to guarantee them.
Bonds issued under this division shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the authority, or a pledge of the faith and credit of the state or of any political subdivision, other than the authority, but shall be payable solely from the funds herein provided therefor. All bonds issued under this division shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California or any local agency is pledged to the payment of the principal of or interest on this bond.” The issuance of bonds under this division shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing in this section shall prevent nor be construed to prevent the authority from pledging its full faith and credit to the payment of bonds or issue of bonds authorized pursuant to this division.
bonds state debt political subdivision funding debt obligation state liability local government taxing power authority issued bonds financial responsibility bond payment credit pledge full faith and credit bond issuance taxation pledge
