2009 California Government Code - Section 53397.1-53397.11 :: Article 4. Tax Increment Bonds

53397.1.  The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
resolution stating its intent to issue the bonds.

53397.2.  The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the proposed bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
proposed bond issuance.
   (c) The maximum interest rate and discount on the proposed bond
issuance.
   (d) The date of the election on the proposed bond issuance and the
manner of holding the election.
   (e) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
   (f) A finding that the amount necessary to pay the principal of,
and interest on, the proposed bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision (e).

53397.4.  The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53397.1 once a day for at
least seven successive days in a newspaper published in the city or
county at least six days a week, or at least once a week for two
successive weeks in a newspaper published in the city or county less
than six days a week.
   If there are no newspapers meeting these criteria, the resolution
shall be posted in three public places within the territory of the
district for two succeeding weeks.

53397.5.  The legislative body shall submit the proposal to issue
the bonds to the voters who reside within the district. The election
shall be conducted in the same manner as the election to create the
district pursuant to Section 53395. 20 and the two elections may be
consolidated.

53397.6.  (a) The bonds may be issued if two-thirds of the voters
voting on the proposition vote in favor of issuing the bonds.
   (b) If the voters approve the issuance of the bonds as provided by
subdivision (a), the legislative body shall proceed with the
issuance of the bonds by adopting a resolution which shall provide
for all of the following:
   (1) The issuance of the bonds in one or more series.
   (2) The principal amount of the bonds, which shall be consistent
with the amount specified in subdivision (b) of Section 53397.2.
   (3) The date the bonds will bear.
   (4) The date of maturity of the bonds.
   (5) The denomination of the bonds.
   (6) The form of the bonds.
   (7) The manner of execution of the bonds.
   (8) The medium of payment in which the bonds are payable.
   (9) The place or manner of payment and any requirements for
registration of the bonds.
   (10) The terms of call or redemption, with or without premium.

53397.7.  If any proposition submitted to the voters pursuant to
this chapter is defeated by the voters, the legislative body shall
not submit, or cause to be submitted, a similar proposition to the
voters for at least one year after the first election.

53397.8.  The legislative body may, by majority vote, provide for
refunding of bonds issued pursuant to this chapter. However,
refunding bonds shall not be issued if the total net interest cost to
maturity on the refunding bonds plus the principal amount of the
refunding bonds exceeds the total net interest cost to maturity on
the bonds to be refunded. The legislative body may not extend the
time to maturity of the bonds.

53397.9.  The legislative body or any person executing the bonds
shall not be personally liable on the bonds by reason of their
issuance. The bonds and other obligations of a district issued
pursuant to this chapter are not a debt of the city, county, or state
or of any of its political subdivisions, other than the district,
and none of those entities, other than the district, shall be liable
on the bonds and the bonds or obligations shall be payable
exclusively from funds or properties of the district. The bonds shall
contain a statement to this effect on their face. The bonds do not
constitute an indebtedness within the meaning of any constitutional
or statutory debt limitation.

53397.10.  The bonds may be sold at discount not to exceed 5 percent
of par at public sale. At least five days prior to the sale, notice
shall be published, pursuant to Section 6061, in a newspaper of
general circulation and in a financial newspaper published in the
City and County of San Francisco and in the City of Los Angeles. The
bonds may be sold at not less than par to the federal government at
private sale without any public advertisement.

53397.11.  If any member of the legislative body whose signature
appears on bonds ceases to be a member of the legislative body before
delivery of the bonds, his or her signature is as effective as if he
or she had remained in office. Bonds issued pursuant to this chapter
are fully negotiable.