2005 California Education Code Sections 92470-92492 Article 3. Revenue Bonds

92470.  The regents shall issue revenue bonds in the name of the
regents and as obligations of the regents, but neither the principal
of, nor interest on, any bond issued or sold pursuant to this chapter
shall be or become a lien, charge, or liability against this state
or against the regents or against the property or funds of either,
except to the extent of the pledge of revenues or part of revenues of
the project, as may be provided by the indenture pursuant to which
revenue bonds are issued, and every such bond issued by the regents
shall contain a recital on its face, substantially as follows: "This
bond is not a lien, charge, or liability, as to either principal or
interest, against the State of California or against the Regents of
the University of California or against the property or funds of
either, except to the extent of the pledge of revenues or part of
revenues, as provided by the indenture pursuant to which it is
issued."
92471.  The regents shall determine the time, form, and manner of
the issuance of revenue bonds.
92472.  The validity of the authorization and issuance of any
revenue bonds by the regents is not dependent on nor affected in any
way by any of the following:
   (a) Proceedings taken by the regents for the acquisition,
construction, or completion of any project or any part of any
project.
   (b) Any contracts made by the regents in connection with the
acquisition, construction, or completion of any project.
   (c) The failure to complete any project for which bonds are
authorized to be issued.
92473.  Before issuing any bond or bonds pursuant to this chapter,
the regents shall by resolution declare the purpose for which the
proceeds of the bonds proposed to be issued shall be expended and
shall specify the maximum amount of bonds to be issued or sold for
such purpose.  Bonds shall not be issued or sold for such purpose in
an amount exceeding the maximum specified in such resolution except
with the consent of bondholders, pursuant to amendment or
modification of an indenture, as provided in Sections 92528 and
92529.  Nothing in this section shall be construed to prevent the
regents from amending any such resolution prior to the issuance of
bonds authorized thereby to increase or decrease the maximum amount
of bonds to be issued or sold.  The issuance of bonds for one or more
projects may be included in a single resolution of authorization.
92474.  The regents may provide for one or several issues of bonds
and may issue bonds in series or may divide any issue into one or
more divisions and fix different maturities or dates of such bonds,
different rates of interest, or prescribe different terms and
conditions for the bonds of the several series or divisions.  It is
not necessary that all bonds of the same authorized issue be of the
same kind or character, have the same security, or be of the same
interest rate, but the terms of such bonds shall in each case be
provided for by the regents, at or prior to the issue of the bonds.
92475.  Bonds may be issued as coupon bonds or as registered bonds.
The regents may provide for the interchange of coupon bonds for
registered bonds and registered bonds for coupon bonds, and may
provide that the bonds shall be registered as to principal only, or
as to both principal and interest, or otherwise as the regents may
determine.
92476.  Bonds shall bear interest at a rate of not to exceed 12
percent per annum, payable annually or semiannually, or in part
annually and in part semiannually.
92477.  Bonds may be callable upon such terms, conditions, and upon
such notice as the regents may determine, and upon the payment of
such premium as may be fixed by the regents in the proceedings for
the issuance of the bonds. No bond is subject to call or redemption
prior to its fixed maturity date unless the right to exercise such
call is expressly stated on the face of the bond.
92478.  The regents may provide for the payment of the principal and
interest of bonds at any place within or without the state, and in
specified coin or currency of the United States.
92479.  The regents may provide for the execution and authentication
of bonds by the manual, lithographed, or printed facsimile signature
of officers of the regents and by additional authentication by a
trustee or fiscal agent appointed by the regents.  If any of the
officers whose signatures or countersignatures appear upon the bonds
or coupons cease to be officers before the delivery of the bonds or
coupons, their signatures or countersignatures are nevertheless valid
and of the same force and effect as if the officers had remained in
office until the delivery of the bonds and coupons.
92480.  Bonds shall bear dates prescribed by the regents. Bonds may
be serial bonds or sinking fund bonds with such maturities as the
regents may determine.  No bond by its terms shall mature in more
than 50 years from its own date and, in the event any authorized
issue is divided into two or more series or divisions, the maximum
maturity date authorized in this section shall be calculated from the
date on the face of each bond separately, irrespective of the fact
that different dates may be prescribed for the bonds of each separate
series or division of any authorized issue.
92481.  Bonds may be sold at either public or private sale.  The
regents may fix terms and conditions for the sale or other
disposition of any authorized issue of bonds.  The regents may sell
bonds at less than their par or face value, but no bond may be sold
at a price below the par or face value of the bond which would result
in a sale price yielding to the purchaser an average of more than 12
percent per annum, payable semiannually, according to standard
tables of bond values.
92482.  The regents may provide for the security of bonds.  The
regents may use and expend all or any part of any funds or proceeds
of any property owned by it, whether received by gift, appropriation
or otherwise, if not restricted as to the use of such funds or
proceeds of property by the terms of any gift or trust or provision
of law, for the redemption of bonds issued pursuant to this chapter
and the payment of interest due on the bonds.
92483.  All costs and expenses incident to the issuance and sale of
bonds may be paid out of the proceeds of the sale of the bonds.
Interest on bonds may be paid out of the proceeds of the sale of the
bonds during the actual construction of any project for the
acquisition, construction, or completion of which the bonds have been
issued, and for a period of not to exceed two years after the
completion of the actual construction of the project as provided for
in the indenture.
92484.  The regents may provide that the bonds and the interest on
the bonds shall be secured by all or by part of revenues of a project
upon the basis of which revenue bonds are issued or authorized to be
issued, and shall constitute such lien upon the revenues of such
project as may be provided for in the indenture.
92485.  Pending the actual issuance or delivery of revenue bonds,
the regents may issue temporary or interim bonds, certificates, or
receipts of any denominations whatsoever, and with or without
coupons, to be exchanged for definitive bonds when ready for
delivery.
92486.  The regents may provide for the replacement of lost,
destroyed, or mutilated bonds, or coupons.
92487.  Bonds issued pursuant to this chapter and the interest or
income from such bonds, are exempt from all taxation in this state
other than gift, inheritance, and estate taxes.
92488.  The regents may designate a bank or trust company, qualified
to do business in this state, as a trustee for the regents and the
holders of bonds issued pursuant to this chapter, and may authorize
the trustee to act on behalf of the holders of the bonds, or any
stated percentage of the bonds, and to exercise and prosecute on
behalf of the holders of the bonds such rights and remedies as may be
available to the holders.
92489.  The regents may fix and determine the conditions upon which
any trustee shall receive, hold, or disburse any or all revenues
deposited with it by or by authority of the regents.  The regents
shall prescribe the duties and powers of any such trustee with
respect to the issuance, authentication, sale, and delivery of the
bonds and the payment of principal of, and interest on, the bonds,
the redemption of the bonds, the registration and discharge from
registration of the bonds, and the management of any sinking fund or
other funds provided as security for the bonds.
92490.  All bonds issued pursuant to this chapter are negotiable
instruments, except when registered in the name of a registered
owner.
92491.  Except as provided otherwise in any indenture, the holder of
any bond issued pursuant to this chapter may, by mandamus or other
appropriate proceeding, require and compel the performance of any of
the duties imposed upon the regents or upon any official or employee
or assumed by the regents or any official or employee, in connection
with the acquisition, construction, operation, maintenance, repair,
reconstruction, or insurance of any project, or the collection,
deposit, investment, application, and disbursement of rents, rates,
charges, fees, and all other revenues derived from the operation and
use of any project or in connection with the deposit, investment, and
disbursement of the proceeds received from the sale of bonds
pursuant to this chapter.  The enumeration of such rights and
remedies does not, however, exclude the exercise or prosecution of
any other rights or remedies available to the holders of bonds issued
pursuant to this chapter.
92492.  Notwithstanding any other provision of law, all bonds sold
and delivered pursuant to this chapter are legal investments for all
trust funds and for the funds of all insurance companies, banks, both
commercial and savings, trust companies, the state school funds, and
any public or private funds which may be invested in county,
municipal, or school district bonds, and may be deposited as security
for the performance of any act whenever the bonds of any county,
municipality, or school district may be so deposited, and may also be
used as security for the deposit of public moneys in banks and
savings and loan associations of this state.