2007 California Government Code Chapter 4. California Infrastructure Guarantee Trust Fund ... 63060-63067

CA Codes (gov:63060-63067)

GOVERNMENT CODE
SECTION 63060-63067



63060.  (a) There is hereby created in the State Treasury the
California Infrastructure Guarantee Trust Fund.
   Notwithstanding Section 13340 and except as provided in
subdivision (b), all money in the guarantee trust fund is hereby
continuously appropriated to the bank without regard to fiscal years
for the purpose of insuring all or a portion of the accounts and
subaccounts within the infrastructure bank fund, any contracts or
obligations of the bank or a sponsor, and all or a part of any series
of bonds issued by the bank, by a special purpose trust, or by a
sponsor pursuant to this division, and for the purpose of defraying
administrative expenses incurred by the bank in operating the
programs of loan and bond guarantee.  All insurance premiums received
by the bank for insurance, guarantees, or enhancements provided
pursuant to this division shall be deposited in the guarantee trust
fund.  The guarantee trust fund is authorized to guarantee all or a
part of any of the accounts and subaccounts within the infrastructure
bank fund, any contracts or obligations of the bank, a special
purpose trust, or a sponsor, and all or part of any series of bonds
issued by the bank, by a special purpose trust, or by a sponsor and
to authorize payment on any guarantee or enhancement of the guarantee
trust fund.
   (b) Moneys in the infrastructure bank fund shall be available for
expenditure for general administration only upon appropriation by the
Legislature.  This subdivision shall not limit the authority of the
bank to expend funds directly related to the servicing of approved
debt.



63061.  Notwithstanding Chapter 2 (commencing with Section 12850) of
Part 2.5 of Division 3 of Title 2 and Article 2 (commencing with
Section 13320) of Chapter 3 of Part 3 of Division 3 of Title 2,
expenditure of the guarantee trust fund shall not be subject to the
supervision or approval of any other officer or division of state
government, with the exception of the Legislature.  However, the bank'
s budget respecting the guarantee trust fund shall be prepared and
reviewed not later than November 1 of each year and the bank shall
submit to the Legislature a report of its activities for the prior
fiscal year.  However, the bank's budget regarding the infrastructure
bank fund shall be prepared and reviewed in accordance with Section
50913, and, not later than November 1 of each year, the agency shall
submit to the Legislature a report of its activities for the prior
fiscal year.  The bank's operating budget shall be subject to review
and appropriation in the annual Budget Act.



63062.  (a) The bank may, from time to time, direct the Treasurer to
invest moneys in the guarantee trust fund that are not required for
its current needs in any eligible securities specified in Section
16430 that the bank shall designate.  The bank may direct the
Treasurer to invest the moneys by entering into repurchase agreements
or reverse repurchase agreements, which, for purposes of this
section, shall mean agreements for the purchase or sale of eligible
securities pursuant to which the seller or buyer agrees to repurchase
or sell back the securities on or before a specified date and for a
specified amount.  The bank may direct the Treasurer to invest the
moneys in the subordinated securities of the bank, a special purpose
trust, or a sponsor.  The bank may direct the Treasurer to invest the
moneys in investment agreements with corporations, financial
institutions, or national associations within the United States that
are rated by a nationally recognized rating service within the top
three rating categories of the service.  For purposes of this
section, investment agreements shall mean any agreement for the
investment of moneys in the guarantee trust fund whether at fixed or
variable interest rates, and may include, but not be limited to,
repurchase agreements, notes, uncollateralized time deposits,
certificates of deposit, and the subordinated securities of the bank,
a special purpose trust, or a sponsor.  The bank may direct the
Treasurer to deposit moneys in interest-bearing accounts in state or
national banks or other financial institutions having principal
offices in this state.
   (b) In furtherance of Section 51373 of the Health and Safety Code,
and to the extent permitted by law, the bank may also invest moneys
of the guarantee trust fund in obligations of financial institutions
that are permitted by board resolution.  The bank may alternatively
require the transfer of moneys in the guarantee trust fund to the
Surplus Money Investment Fund for investment pursuant to Article 4
(commencing with Section 16470) of Chapter 3 of Part 2 of Division 4
of Title 2.
   (c) All interest or other increment resulting from the investment
or deposit shall be deposited in the guarantee trust fund,
notwithstanding Section 16305.7.
   (d) The bank may create other accounts within the guarantee trust
fund as are necessary or convenient to carry out the purposes of this
article.



63063.  (a) There is a guarantee reserve account in the guarantee
trust fund to secure commitments under contracts to guarantee all or
part of the bonds of the bank, a special purpose trust, or of a
sponsor, any contracts or obligations of the bank, a special purpose
trust, or of a sponsor, and all or part of the accounts or
subaccounts within the infrastructure bank fund.  The bank shall take
all reasonable steps to ensure that the guarantee reserve account is
continuously maintained at not less than the reserve account
requirement established pursuant to subdivision (a) of Section 63064.
  The bank shall pay all of the following into the guarantee reserve
account:
   (1) Moneys appropriated and made available by the Legislature for
deposit in the account.
   (2) Any proceeds of bonds, including general obligation bonds, to
the extent provided in the resolution, trust agreement, resolutions
or trust agreements authorizing the issue thereof.
   (3) Any other moneys that the bank may make available for the
purpose of deposit to the guarantee reserve account.
   (b) The bank shall not cause sums to be withdrawn from the
guarantee reserve account in amounts that would reduce the moneys
therein to less than the reserve account requirement, except as
necessary to satisfy liabilities arising under contracts of
guarantee.  In the event that the loan guarantee reserve account is
reduced to less than the reserve account requirement, the bank shall
cease making commitments for, and contracts of, guarantees and
enhancements until the guarantee reserve account has been restored to
that requirement.



63064.  (a) The Legislature may from time to time appropriate or
transfer to the guarantee reserve account from funds or accounts that
are legally available, an amount or amounts as the Legislature may
determine.  The Legislature may establish, and from time to time
increase, for the guarantee reserve account a requirement that shall
be known as the "reserve account requirement."
   (b) If the bank determines that the amount in the reserve account
is below the reserve account requirement, the executive director
shall immediately certify in writing to the Joint Legislative Budget
Committee, the Speaker of the Assembly, the Senate Committee on
Rules, and the Governor, the sum required to restore the reserve fund
to the reserve account requirement.
   (c) Upon making the certification, the chief executive officer
shall ask the Governor to request an appropriation, and shall use his
or her best efforts to have a sum requested and appropriated.
   (d) Upon receiving notice that the amount in the reserve account
is below the reserve account requirement, the Legislature may, at its
discretion, choose to appropriate and pay to the bank for deposit
into the guarantee reserve account that sum that would restore the
reserve account to an amount equal to the reserve account
requirement.
   (e) The bank may utilize any moneys that may be appropriated to
the guarantee trust fund from time to time by the Legislature for
effectuating its purposes, including, but not limited to, the payment
of the initial expenses of administration and operation and the
restoration of the reserve account to the reserve account
requirement.



63065.  (a) The obligation of the bank and of the state to pay any
guarantee benefit pursuant to contracts of guarantee or any other
contracts or obligations of the bank, a special purpose trust, or
sponsor shall be a limited obligation of the bank payable solely from
amounts deposited in the guarantee trust fund that are made
available therefor under the respective contracts of guarantee.  The
guarantee of loans or 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.
   (b) All contracts of guarantee or any other contracts or
obligations of the bank, special purpose trust, or a sponsor pursuant
to 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 is pledged to the payment of the
principal of or interest on this contract of guarantee."
   (c) Moneys in the guarantee trust fund may not be transferred to
any other fund except for payment on any guarantee or enhancements or
except as necessary to pay the expenses of operating the program of
bond guarantee and enhancement authorized by this division, nor shall
the bank utilize any moneys under the direction and control of the
agency, including, but not limited to, moneys in the California
Housing Loan Insurance Fund and the California Housing Finance Fund,
other than moneys in the guarantee trust fund, to satisfy liabilities
arising from contracts of guarantee authorized by this division.



63066.  The bank may charge and collect insurance guarantee or
enhancement premiums or other fees for the insurance guarantees or
enhancements described in this chapter and impose other reasonable
charges and fees for services performed in connection with approval
and processing of the guarantees or enhancements, or for pool
assembly, loan servicing, or other services the bank may provide to a
special service trust.



63067.  (a) Moneys in the infrastructure bank fund received from the
proceeds of bonds issued pursuant to this division may not be
transferred to any other fund except as necessary to pay the expenses
of operating the program authorized by this division, nor shall the
bank utilize any moneys under the direction and control of the
agency, including, but not limited to, moneys in the California
Housing Loan Insurance Fund and the Housing Finance Fund, other than
moneys in the infrastructure bank fund to satisfy liabilities arising
from projects authorized by this division.
   (b) The infrastructure bank fund, on behalf of the bank or a
special purpose trust, may borrow or receive moneys from any federal,
state, or local agency or private entity, in order to create
reserves in the infrastructure bank fund as provided in this division
and as authorized by resolution of the board.

Disclaimer: These codes may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.