2010 California Code
Government Code
Article 4. Revenue Bonds

67550.  The commission may issue bonds for the acquisition,
construction, reconstruction, completion, addition, betterment,
improvement, extension, or repair of the regional transit terminal or
any part thereof, and any indenture under which bonds are issued may
provide for the payment of any incidental expenses, including legal,
engineering, fiscal, financial consultant, and other expenses,
connected with issuing and disposing of the bonds, for all amounts
required for the creation of an operating fund, or construction fund,
reserve fund, sinking fund, or other special fund, for all other
incidental expenses connected with the acquisition, construction, or
completion of the regional transit terminal or any part thereof, for
reimbursement of advances by the commission or by others for such
purposes and for working capital. The total amount of bonds that may
be issued by the commission shall not be limited as to aggregate
principal amount, except as the commission may provide in any
indenture.


67551.  The validity of the authorization and issuance of any bonds
by the commission is not dependent on or affected in any way, except
to the extent provided in the indenture by:
   (a) Proceedings taken by the commission or the department for the
acquisition, construction, or completion of the regional transit
terminal or any part thereof.
   (b) Any contracts made by the commission or the department in
connection with the acquisition, construction, or completion of the
regional transit terminal or any part thereof.
   (c) The failure to complete any part of the regional transit
terminal for which bonds are authorized to be issued.




67552.  The commission shall issue bonds in its name. These bonds
shall constitute obligations of the commission only, and neither the
payment of the principal of any such bond nor the payment of interest
thereon constitutes a debt, liability, or obligation of any county,
city, city and county, district, or political subdivision, or of the
State of California. All bonds issued by the commission shall contain
a recital on their face that neither the payment of the principal,
or any part thereof, nor the payment of any interest thereon
constitutes a debt, liability, or obligation of any county, city,
city and county, district, or political subdivision, or of the State
of California.


67553.  The commission shall determine the time, form, and manner of
the issuance of bonds. The bonds shall be payable only out of
specified revenues as the commission shall determine at the time of
their issuance.


67554.  The commission may enter into indentures providing for the
principal amount, date or dates, maturities, interest rate,
denominations, form, registration, transfer, interchange, and other
provisions of such bonds and coupons, and the terms and conditions
upon which the bonds shall be executed, issued, secured, sold, paid,
redeemed, funded, and refunded. Reference on the face of the bonds to
such indenture by its date of adoption, or the apparent date on the
face thereof, is sufficient to incorporate all of the provisions
thereof and of this chapter into the body of the bonds and their
appurtenant coupons. Each taker and subsequent holder of the bonds or
coupons, whether the coupons are attached to or detached from the
bonds, has recourse to all of the provisions of the indenture and of
this chapter and is bound thereby.



67555.  An indenture may include such covenants and agreements on
the part of the commission as the commission deems necessary or
advisable for the issue, payment, better security, or protection of
the bonds issued thereunder.


67556.  An indenture may include a clause requiring the commission
to pay, or cause to be paid, punctually the principal of all such
bonds and the interest thereon on the date or dates, at the place or
places, and in the manner mentioned in such bonds and in the coupons
appertaining thereto, all in accordance with such indenture.




67557.  An indenture may include a clause requiring the department
to continuously operate the regional transit terminal and other
facilities in an efficient and economical manner.



67558.  An indenture may include a clause requiring the department
to make all necessary repairs, renewals, and replacements to the
regional transit terminal and to keep it at all times in good repair,
working order, and condition.


67559.  An indenture may include a clause requiring the commission
to preserve and protect the security of the bonds and the rights of
the holders thereof and to warrant and defend such rights.



67560.  An indenture may include a clause requiring the commission
to pay and discharge, or cause to be paid and discharged, all lawful
claims for labor, materials, and supplies, or other charges which, if
unpaid, might become a lien or charge upon the revenues, or any part
thereof, of the regional transit terminal or which might impair the
security of the bonds.



67561.  An indenture may include a clause which limits, restricts,
or prohibits any right, power, or privilege of the commission to
mortgage or otherwise encumber, sell, lease, or dispose of all, or
any part, of the regional transit terminal, or to enter into any
other agreement which impairs or impedes the operation of the
terminal, or any part thereof, necessary to secure adequate revenues
or which otherwise impairs or impedes the rights of the holders of
the bonds with respect to such revenues.



67562.  An indenture may include a clause requiring the commission
to fix, prescribe, and collect rates, rents, fees, or other charges
in connection with the regional transit terminal and, in addition, to
provide a margin of safety in the collection thereof as further
security for the bonds.



67563.  An indenture may include a clause requiring the commission
to hold in trust the proceeds of the bonds and the revenues pledged
to the payment of such bonds and the interest thereon, or to any
reserve or other fund created for the further protection of the
bonds, and to apply such revenues or cause them to be applied only as
provided in the indenture.



67564.  An indenture may include a clause limiting the power of the
commission to apply the proceeds of the sale of any issue of bonds
except as provided in the indenture.



67565.  An indenture may include a clause limiting the power of the
commission to issue additional bonds except upon such terms and
conditions as are set forth in the indenture.



67566.  An indenture may include a clause requiring, specifying, or
limiting the kind, amount, and character of insurance to be
maintained by the department on the regional transit terminal, or any
part thereof, and the use and disposition of the proceeds of any
such insurance thereafter collected. Such insurance may include fire,
casualty, fidelity, public liability, property damage, or any other
type or kind of insurance deemed desirable by the department,
including use and occupancy insurance or insurance against loss of
revenues from any cause.


67567.  An indenture may include a clause providing the events of
default and the terms and conditions upon which such default and its
consequences may be waived. An indenture may include a clause
designating the rights, limitations, power, and duties arising upon
breach by the commission or department of any of the covenants,
conditions, or obligations contained in any indenture; provided, that
no indenture shall limit or restrict the rights granted to
bondholders by Article 7 (commencing with Section 67620).



67568.  An indenture may include a clause prescribing a procedure by
which the terms and conditions of the indenture may be subsequently
amended or modified with the consent of the commission and the vote
or written assent of the holders of a specified principal amount of
the bonds issued and outstanding. Such clause may provide for
meetings of bondholders and for the manner in which the consent of
the bondholders may be given. Such clause shall specifically state
the effect of such amendment or modification upon the rights of the
holders of all of the bonds and interest coupons appertaining
thereto, whether attached thereto or detached therefrom.
   With respect to any clause providing for the modification or
amendment of an indenture, the commission may agree that bonds held
by the commission, by any department or agency of the State of
California, or by any public corporation, shall not be counted as
outstanding bonds, or be entitled to vote or assent, but shall,
nevertheless, be subject to any such modification or amendment.




67569.  An indenture may include a clause providing for such other
acts and matters as may be necessary or convenient or desirable in
order to secure the bonds or to make the bonds more marketable.



67570.  The commission may designate a bank or trust company,
qualified to do business in this state, as a trustee for the
commission and the holders of bonds issued hereunder, and may
authorize the trustee to act on behalf of the holders of the bonds,
or any stated percentage thereof, and to exercise and prosecute on
behalf of the holders of the bonds such rights and remedies as may be
available to the holders.



67571.  The commission shall fix and determine, in an indenture, the
conditions upon which any indenture trustee shall receive, hold, or
disburse any or all revenues collected for, or on account of, the
commission. The commission shall, in an indenture, prescribe the
duties and powers of such indenture trustee with respect to the
issuance, authentication, sale, and delivery of the bonds and the
payment of principal and interest thereof, 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.


67572.  The commission may issue bonds in series and may divide any
series 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 thereof shall in each
case be provided for by the commission, at or prior to the issue
thereof. The commission may provide for successive issues or may
provide for one maximum issue. The commission may provide that all
bonds, or the bonds of any specified issue, shall be paid from and
secured by the revenues of the specified facilities, all in the
manner and upon the terms set forth in the indenture.



67573.  Bonds may be issued as coupon bonds or as registered bonds.
The commission 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 commission may
determine.



67574.  Bonds shall bear interest at a rate of not to exceed 7
percent per annum, payable annually or semiannually, or in part
annually and in part semiannually.



67575.  Bonds may be callable upon such terms and conditions and
upon such notice as the commission may determine, and upon the
payment of the premium fixed by the commission in the proceedings for
the issuance of the bonds. No bond shall be 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.



67576.  The commission may provide for the payment of the principal
and interest of bonds at any place or places within or without the
State of California, and in any specified lawful coin or currency of
the United States of America.


67577.  The commission may provide for the execution and
authentication of bonds by the manual, lithographed, or printed
facsimile signature of officers of the commission, and by additional
authentication by a trustee or fiscal agent appointed by the
commission. 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.



67578.  Bonds shall bear dates prescribed by the commission. Bonds
may be serial bonds or sinking fund bonds with such maturities as the
commission 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 herein authorized 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.



67579.  The commission may fix terms and conditions for the sale or
other disposition of any authorized issue of bonds. The commission
may sell bonds at less than their par or face value, but no issue of
bonds may be sold at an aggregate price below the par or face value
thereof if such sale would result in a net interest cost to the
commission, calculated upon the entire issue so sold, of more than 7
percent per annum, payable semiannually, according to standard tables
of bond values. All bonds issued and sold for cash pursuant to this
chapter shall be sold on sealed proposals to the highest bidder,
either bidding alone or in conjunction with others, after advertising
for bids by publication of notice of sale once, not less than 10
days prior to the date of sale, in a newspaper of general circulation
printed and published in the City and County of San Francisco. The
commission may reject any and all bids submitted and may thereafter
sell the bonds so advertised for sale at private sale to any
financially responsible bidder, either bidding alone or in
conjunction with others, under such terms and conditions as it deems
most advantageous to its own interest, but the bonds shall not be
sold at a price below that of the highest bid which was rejected. The
commission may contract loans and borrow money through the sale of
bonds to the United States of America or any of its departments or
agencies, upon such terms and conditions as may be agreed to. Such
bonds shall be subject to all other provisions of this chapter,
except the requirement that bonds be sold on sealed proposals to the
highest bidder after advertising for bids.



67580.  The commission may provide, in the proceedings for the
issuance of bonds, that the bonds and the interest thereon constitute
such lien upon the revenues of the regional transit terminal or any
part thereof acquired, constructed, or completed, improved, or
extended, by the department as may be provided for in the indenture.
The indenture may provide that the bonds shall be secured by the
revenues derived from the entire regional transit terminal or from
revenues of only certain designated facilities therein.



67581.  Interest on bonds may be paid out of the proceeds of the
sale of the bonds during the period required for construction of the
regional transit terminal or any part thereof, and for a period not
to exceed three years thereafter as may be provided for in the
indenture.



67582.  Pending the actual issuance or delivery of definitive bonds,
the commission 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.



67583.  All bonds, and the interest thereon, are exempt from all
taxation by the State of California or any public corporation other
than gift, inheritance and franchise taxes.



67584.  The commission may provide for the issuance, sale, or
exchange of refunding bonds for the purpose of redeeming or retiring
any bonds issued by the commission. All provisions of this chapter
applicable to the issuance of bonds are applicable to the refunding
bonds and to the issuance, sale, or exchange thereof.




67585.  Refunding bonds may be issued in a principal amount
sufficient to provide funds for the payment of all bonds to be
refunded thereby, and in addition for the payment of all expenses
incident to the calling, retiring or paying of such outstanding
bonds, and the issuance of such refunding bonds. These expenses may
include the difference in amount between the par value of the
refunding bonds and any amount less than par for which the refunding
bonds are sold, any amount necessary to be made available for the
payment of interest upon such refunding bonds from the date of sale
thereof to the date of payment of the bonds to be refunded or to the
date upon which the bonds to be refunded will be paid pursuant to the
call thereof or agreement with the holders thereof, and the premium,
if any, necessary to be paid in order to call or retire the
outstanding bonds and the interest accruing thereon to the date of
the call or retirement.


67586.  All bonds issued under the provisions of this chapter are
negotiable instruments, except when registered in the name of a
registered owner.


67587.  The commission may apply to the State Treasurer under the
Districts Securities Law (Division 10 (commencing with Section 20000)
of the Water Code), as such law now reads or may hereafter be
amended to read, for the certification of any bonds issued by it as
legal investments for savings banks and other funds, but such
certification shall not be a condition precedent to the issuance of
any bonds by the commission nor shall the State Treasurer have any
jurisdiction over the expenditure of any proceeds of bonds certified
by it. If the State Treasurer determines that the bonds are
adequately secured and that the revenues of the commission applicable
to the payment thereof are, or probably will be, sufficient to pay
the principal and interest on the bonds, and if the State Treasurer
certifies to that effect, the bonds so certified shall be eligible as
legal investments for both public and private funds in the same
manner as provided in the Districts Securities Law. The commission
may issue bonds with or without such certification and shall not be
precluded from issuing bonds subsequently without such certification,
notwithstanding the fact that earlier issues of bonds may have been
certified as legal investments.



67588.  Prior to the issuance of any bonds, the commission may
commence in the Superior Court of the State of California, in and for
the City and County of San Francisco, a special proceeding to
determine the right to issue the bonds and their validity. Such
proceedings shall be instituted and prosecuted in the same manner as
provided by Sections 860 to 870, inclusive, of the Code of Civil
Procedure, as these sections now read or may hereafter be amended to
read, and these sections shall apply to and govern all such
proceedings instituted under this chapter. Such proceeding shall be a
proceeding in rem and the judgment rendered therein shall be
conclusive against all persons whomsoever.



67589.  No indenture need be recorded or filed in any public office,
other than the office of the commission. The pledge of revenues
provided in any indenture shall take effect forthwith as provided
therein, and irrespective of the date of receipt of such revenues by
the commission or the indenture trustee. Such pledge shall be
effective as provided in the indenture without physical delivery of
the revenues to the commission or to the indenture trustee.



67590.  Subject to any applicable provisions which may be contained
in an indenture, the commission may invest any available funds in
bonds issued by it and may hold, cancel, or resell such bonds.



67591.  While any bonds issued by the commission remain outstanding
and unpaid, the power of the department to establish, levy, and
collect rents, fees, and other charges in connection with the
regional transit terminal shall not be diminished or impaired.