2009 California Government Code - Section 15821-15829.5 :: Chapter 4. Certificates

15821.  Certificates issued pursuant to this part are negotiable
instruments and are transferable between state agencies having
jurisdiction over special or trust funds or between such state
agencies and other persons at a price mutually agreed upon by such
state agencies or by such state agencies and other persons.

15822.  The certificates shall be authorized by resolutions of the
board, and shall bear such dates, mature at such time or times not
exceeding 25 years from their respective dates, bear interest at such
rate or rates agreed upon between the board and the investing agency
with the approval of the Department of Finance, not exceeding 5
percent per year, payable semiannually, be in such denominations and
in such form, be payable in such medium of payment and at such place
or places, and subject to such terms of redemption at such prices not
exceeding 105 percent of the principal amount as the resolutions
provide.
   The certificates shall bear the facsimile signature of the
Governor and the facsimile countersignature of the Controller and
shall be endorsed by the State Treasurer either by original signature
or by a signature stamp, and the certificates shall be signed,
countersigned, and endorsed by the officers who shall be in office on
the date of issuance thereof, and each of said certificates shall
bear an impress of the Great Seal of the State of California.

15823.  The certificates shall be sold by the board at their face
value to state agencies having jurisdiction over special or trust
funds, without advertisement or competitive bidding. Such
certificates are a legal investment for any state special or trust
fund notwithstanding any provision of law limiting the investment
which may be made by such special or trust fund. Payment of the
purchase price may be made in accordance with mutual agreement
between the state agency and the board, which agreement may provide
for such payment in installments as work upon the public building or
buildings progresses and funds necessary therefor are required.

15824.  Any resolutions authorizing any certificates may contain
provisions which are part of the contract with the state agency as
to:
   (a) Pledging all or any of the revenues, rentals, or receipts of
the authority from specific properties.
   (b) The construction or acquisition of any public building and the
duties of the board with reference thereto.
   (c) The terms and provisions of the certificates.
   (d) Limitations on the purposes to which the proceeds of the
certificates, then or thereafter to be issued may be applied.
   (e) The rate of rentals and other charges for use of the public
buildings of, or for the services rendered by, the board, including
limitations upon the power of the board to modify any leases or other
agreements pursuant to which any rentals or other charges are
payable.
   (f) The setting aside of reserves or sinking funds and the
regulation and disposition of them.
   (g) Limitations on the issuance of additional certificates or
revenue bonds.
   (h) Any other agreements with the certificate holders.

15825.  The board may provide, by resolution, for the issuance of
refunding certificates for the purpose of refunding any certificates
of the board issued pursuant to this part and then outstanding,
either by voluntary exchange with the holders of the outstanding
certificates, or to provide funds to redeem and retire the
outstanding certificates, with accrued interest and any redemption
value payable on any call date. The issuance of the refunding
certificates, the maturities and other details of the certificates,
the rights of the certificate holders, and the duties of the board in
respect to the certificates, are governed by the provisions of this
part insofar as they are applicable. Refunding certificates may be
issued by the board to refund certificates originally issued or to
refund certificates of the board previously issued for refunding
purposes.

15826.  The State Treasurer shall act as trustee for the board and
the holders of the certificates issued under this part, and the board
may authorize the trustee to act on behalf of the holders of the
certificates, or any stated percentage thereof, and to exercise and
prosecute on behalf of the holders of the certificates such rights
and remedies as may be available to the holders.
   The board shall, by resolution, prescribe the duties and powers of
such trustee with respect to the issuance, authentication, sale, and
delivery of the certificates, and the payment of principal and
interest thereof, the redemption of the certificates, and the
management, exclusive of the investment or reinvestment thereof, of
any sinking fund or other funds provided as security for the
certificates.

15827.  The rights and remedies conferred by this part upon or
granted to certificate holders are in addition to and not in
limitation of any rights and remedies lawfully granted to such
certificate holders by the resolutions providing for the issuance of
certificates.
   If the board defaults in the payment of principal or interest on
any of the certificates after such principal or interest becomes due,
whether at maturity or upon call for redemption, and if such default
continues for a period of 60 days, or if the board fails or refuses
to comply with the provisions of this part or defaults in any
agreement made with the certificate holders, the holders of 25
percent in aggregate principal amount of the certificates then
outstanding by instruments filed in the Office of the County Recorder
of the County of Sacramento, and acknowledged in the same manner as
a deed to be recorded except as this right is limited under the
provisions of any deed of trust, indenture, or other agreement, may
appoint a trustee to represent the certificate holders for the
purposes provided in this part. The trustee or any trustee under any
deed of trust, indenture, or other agreement may, and upon written
request of the holders of 25 percent in principal amount of the
certificates then outstanding, or such other percentage as is
specified in the deed of trust, indenture or other agreement, shall
in his name:
   (a) By proper proceedings and actions enforce all rights of the
certificate holders, including the right to require the board to
collect rates, rentals and other charges adequate to carry out any
agreement as to the revenues, or the pledge of revenues or receipts
of the board, to lease public buildings to state agencies or
otherwise and require the board to carry out any other agreements
with or for the benefit of the certificate holders, and to perform
its duties under this part.
   (b) Bring suit upon the certificates.
   (c) By an action require the board to account as if it were the
trustee of an express trust for the certificate holders.
   (d) By an action enjoin any acts or things which may be unlawful
or in violation of the certificate holders' rights.
   (e) By notice in writing to the board declare certificates due and
payable, and if all defaults are made good then with the consent of
the holders of 25 percent of the principal amount of the certificates
then outstanding or such other percentage as is specified in any
deed of trust, indenture, or other agreement, annul the declaration
that certificates are due and payable.

15828.  A trustee, appointed pursuant to Section 15827, or acting
under a deed of trust, indenture, or other agreement, whether or not
all certificates have been declared due and payable, may have a
receiver appointed. The receiver may, to the same extent that the
board itself could do, enter and take possession of the public
buildings of the board, or any parts thereof, the revenues, rentals,
or receipts from which are applicable to the payment of the
certificates in default, and operate and maintain the public
buildings and collect and receive all rentals and revenues thereof
arising therefrom in the same manner as the board might do. The
receiver shall deposit money in a separate account and apply it in
such manner as the court directs. In any action or proceeding by the
trustees, the fees, counsel fees, and expenses of the trustees, and
of the receiver, and all costs and disbursements allowed by the
court, are a first charge on any revenues and receipts derived from
the public buildings of the board, the revenues or receipts from
which are or may be applicable to the payment of the certificates in
default. The trustee shall have and possess all the powers necessary
or appropriate for the exercise of any functions specifically set
forth in this part or incident to the general representation of the
certificate holders in the protection and enforcement of their
rights; provided, however, that nothing in this section or any other
section in this part shall authorize any trustee appointed pursuant
to Section 15827, for the purpose of operating and maintaining any
public buildings of the board, to sell, assign, mortgage, or
otherwise dispose of, any of the assets of whatever kind and
character belonging to the board.

15829.  In addition to all other rights and all other remedies the
holder of certificates of the board may by an action at law enforce
his rights against the board, including the right to require the
board to collect fees, rentals, and other charges adequate to carry
out any agreement as to fees, rentals, or other charges or income,
revenue and receipts and require the board to carry out any of its
covenants and agreements with the certificate holders and perform its
duties under this part.

15829.5.  This chapter shall not apply to the Unemployment
Compensation Disability Fund.