2005 California Government Code Sections 63049.67-63049.68 Apportionments

63049.67.  (a) Notwithstanding any other provision of this division,
a financing of emergency apportionments upon the request of a school
district pursuant to Article 2.7 (commencing with Section 41329.50)
of Chapter 3 of Part 24 of the Education Code, is deemed to be in the
public interest and eligible for financing by the bank.  Article 3
(commencing with Section 63041), Article 4 (commencing with Section
63042) and Article 5 (commencing with Section 63043) do not apply to
the financing provided by the bank in connection with an emergency
apportionment.
   (b) The bank may issue bonds pursuant to Chapter 5 (commencing
with Section 63070) and provide the proceeds to a school district
pursuant to a lease agreement.  The proceeds may be used as an
emergency apportionment, to reimburse the interim emergency
apportionment from the General Fund authorized pursuant to
subdivision (b) of Section 41329.52 of the Education Code, or to
refund bonds previously issued under this section.  Bond proceeds may
also be used to fund necessary reserves, capitalized interest,
credit enhancement costs, and costs of issuance.
   (c) Bonds issued under this article are not deemed to constitute a
debt or liability of the state or of any political subdivision of
the state, other than a limited obligation of the bank, or a pledge
of the faith and credit of the state or of any political subdivision.
  All bonds issued under this article shall contain on the face of
the bonds a statement to the same effect.
   (d) Any fund or account established in connection with the bonds
shall be established outside of the centralized treasury system.
Notwithstanding any other law, the bank shall select the financing
team and the trustee for the bonds, and the trustee shall be a
corporation or banking association authorized to exercise corporate
trust powers.
   (e) Pursuant to Section 41329.55 of the Education Code, the school
district shall instruct the Controller to repay the lease from
moneys in the State School Fund designated for apportionment to the
school district.
   (f) Notwithstanding any other law, as long as any bonds issued
pursuant to this section are outstanding, the school district for
which the bonds were issued is not eligible to be a debtor in a case
under Chapter 9 of the United States Bankruptcy Code, as it may be
amended from time to time, and no governmental officer or
organization is or may be empowered to authorize the school district
to be a debtor under that chapter.
   (g) The bank may enter into contracts or agreements with banks,
insurers, or other financial institutions or parties that it
determines are necessary or desirable to improve the security and
marketability of, or to manage interest rates or other risks
associated with, the bonds issued pursuant to this section.  The bank
may pledge apportionments made by the Controller directly to the
bond trustee pursuant to Section 41329.55 of the Education Code as
security for repayment of any obligation owed to a bank, insurer, or
other financial institution pursuant to this subdivision.
63049.68.  The State of California pledges that (a) the state will
not alter the directive to the Controller to make apportionments to
the bond trustee of moneys in the State School Fund from that set
forth in Section 41329.55 of the Education Code, and (b) the state
will not amend or repeal subdivision (f) of Section 63049.67, in each
case in any manner that would materially impair the security or
other interests of holders of any bonds issued pursuant to this
article. The bank is authorized to include this pledge in the bonds,
or other documents entered into in connection with the bonds, as a
covenant for the benefit of the bondholders.