City of Industry Municipal Code Ch. 3.56 Issuance of Revenue Bonds

The following terms shall have the following respective meanings when used in this chapter.

"Bond purchase agreement"

means a contractual agreement executed between the city and a local agency whereby the city agrees to purchase local obligations of such local agency.

"City council"

means the city council of the city, as the legislative body of the city.

"Local agency"

means any public agency which is governed by or which is appointed by the city council, including but not limited to the parking authority of the city of Industry, the industrial development authority of the city of Industry, the Industry urban-development agency, the civic recreational industrial authority, or the city.

"Local obligations"

means any bonds including, but not limited to, assessment bonds, redevelopment agency bonds, government issued mortgage bonds and industrial development bonds, notes (including bond, revenue, tax or grant anticipation notes), commercial paper, floating rate and variable maturity securities, and any other evidences of indebtedness and also includes certificates of participation or lease-purchase agreements, which are issued by a local agency.

"Ordinance"

means the provisions of this chapter, as amended from time to time.

"Public capital improvements"

means one or more projects located in the city and specified in Section 6546 of the Government Code of the state of California.

"Revenue"

means all income and receipts of the city from a bond purchase agreement or from the loan of the proceeds of any issue of revenue bonds to a local agency, including any other sources of income derived by the city from the issuance of its revenue bonds under this chapter.

"Revenue bonds"

means bonds issued by the city pursuant to this chapter for any one or more of the following purposes: (a) for the purpose of acquiring one or more issues of local obligations; (b) for the purpose of financing public capital improvements of the city; or (c) for the purpose of making loans to local agencies to provide financing for public capital improvements.

(Ord. 640 § 5, 1998)

This chapter does not limit any other law authorizing, or providing for, the financing of public capital improvements. Likewise, this chapter does not limit any other law regarding local indebtedness, or limit the exercise of any other power of an authority created pursuant to this chapter. This chapter shall be deemed to provide a complete and supplemental method for exercising the powers authorized by this chapter, and shall be deemed as being supplemental to the powers conferred by other applicable laws. The issuance of bonds, financing or refinancing under this chapter need not comply with the requirements of any other state laws applicable to the issuance of such bonds.

(Ord. 640 § 6, 1998)

The city council in the name and on behalf of the city may issue revenue bonds for any one or more of the following purposes: (a) for the purpose of acquiring one or more issues of local obligations, (b) for the purpose of financing public capital improvements of the city, or (c) for the purpose of making loans to local agencies other than the city to provide financing for public capital improvements. In connection with the issuance of revenue bonds under this chapter, the city shall be authorized to:

A. Make secured or unsecured loans to any local agency other than the city in connection with the financing of public capital improvements, or in connection with the refinancing of indebtedness incurred by the local agency in connection with public capital improvements, in accordance with an agreement between the city and the local agency;

B. Mortgage all or any portion of its interest in public capital improvements and the property on which any project is located, whether owned or thereafter acquired, inducting the granting of a security interest in any property, tangible or intangible;

C. Assign or pledge all or any portion of its interests in mortgages, deeds of trust, indentures of mortgage or trust, or similar instruments, notes and security interests in property, tangible or intangible, of a local agency to which the city has made loans, and the revenues therefrom, including payment or income from any interest owned or held by the city, for the benefit of the holders of revenue bonds. The pledge of moneys, revenues, accounts, contract rights or rights to payment of any kind made by or to the city pursuant to the city granted in this part shall be valid and binding from the time the pledge is made for the benefit of the pledgees and successors thereto, against all parties irrespective of whether the parties have notice of the claim;

D. Lease the public capital improvements being financed to a local agency, upon terms and conditions that the city deems proper; charge and collect rents therefor; terminate any lease upon the failure of the lessee to comply with any of the obligations of the lease; include in any lease provisions that the lessee shall have options to renew the lease for a period or periods, and at rents as determined by the city; purchase or sell by an installment agreement or otherwise any or all of the public capital improvements; or, upon payment of all the indebtedness incurred by the city for the financing or refinancing of the public capital improvements, the city may convey any or all of the project to the lessee or lessees;

E. Apply revenues, to the extent not required for payment of principal of and interest and redemption premium (if any) on revenue bonds, to the payment of administrative costs and expenses incurred by the city in the exercise of its powers under this chapter, or for any other purpose for which city funds may lawfully be expended;

F. Notwithstanding any other provision of this chapter, enter into any agreement, contract or any other instrument with respect to any insurance or guarantee; accept payment in the manner and form as provided therein in the event of default by a local agency; and assign any insurance or guarantee that acts as security for the revenue bonds;

G. Enter into any agreement or contract, execute any instrument and perform any act or thing necessary, convenient, or desirable to carry out any power authorized by this chapter;

H. Invest any moneys held in reserve or sinking funds, or any moneys not required for immediate use or disbursement, in obligations that are authorized by law for the investment of trust funds;

I. At the request of affected local agencies, combine and pledge revenues to public capital improvements for repayment of one or more series of revenue bonds;

J. Set any other terms and conditions on any purchase or sale pursuant to this section as it deems by resolution to be necessary, appropriate and in the public interest, in furtherance of the purposes of this chapter.

(Ord. 640 § 7, 1998)

The city may enter into a bond purchase agreement with one or more local agencies. The bond purchase agreement shall specify the maximum rate of interest, the cost of issuance, the amount of required reserve and the procedure to be used in case of default. Notwithstanding any other provision of law, local agencies may sell their bonds to the city on a negotiated basis without compliance with any public sale requirement included in the statutes under which the revenue bonds are issued. Any issue of bonds by a local agency may be sold at a price which yields in excess of the yield on the revenue bonds.

(Ord. 640 § 8, 1998)

A. The city may, from time to time, issue revenue bonds in such principal amount as the city determines necessary to provide sufficient funds for its purposes, which may include, but shall not be limited to, providing funds for bond purchase agreements, payment of interest on the revenue bonds, establishment of reserves to secure the revenue bonds, and other expenditures of the city incident to issuance of the revenue bonds. The city may also issue revenue bonds for the purpose of making loans to local agencies, to the extent those local agencies are authorized by law to borrow moneys, and the loan proceeds shall be used by the local agencies to finance or refinance public capital improvements. Revenue bonds may be authorized to finance a single public capital improvement for a single local agency; a series of public capital improvements for a single local agency, a single public capital improvement for two or more local agencies, or a series of public capital improvements for two or more local agencies. At the election of the city, revenue bonds may be issued for multiple purposes, inducing but not limited to the purchase of local obligations and the financing of public capital improvements of the city.

B. Every issue of revenue bonds shall be special obligations of the city payable solely from the revenues and other funds and assets pledged therefor by the city.

C. Revenue bonds shall be authorized by resolution of the city council, or by a trust agreement, indenture or other agreement of the city approved by resolution of the city council, and shall, as provided by such resolution, trust agreement, indenture or other agreement, bear the date of issuance; the time of maturity, not exceeding thirty years from their date of issuance; bear the rate of interest, either fixed or variable, and, if variable, not in excess of the maximum rate of interest specified therein; be payable as to principal and interest at the time or times provided; be in the denominations provided; be in the form provided; carry the registration privileges provided; be executed in the manner provided; be payable in lawful money of the United States at the place or places provided within or without the state of California; and be subject to the terms of redemption provided.

(Ord. 640 § 9, 1998)

Any issue of revenue bonds authorized to be issued by the city under this chapter shall be sold by the city at the time and in the manner set out in the resolution, trust agreement, indenture or other agreement of the city council authorizing the issuance thereof. Revenue bonds may be sold at public or private sale, and for price or prices, and on terms and conditions as the city council shall determine proper, after, giving due consideration to the recommendations of any local agency to be assisted from the proceeds of the revenue bonds.

(Ord. 640 § 10, 1998)

Any resolution, trust agreement, indenture or other agreement of the city council authorizing the issuance of revenue bonds may contain any provisions for the security of the revenue bonds, for the administration of funds and accounts established with respect to the revenue bonds, and in any other respect as the city shall deem necessary or advisable, and not in conflict with or inconsistent with the provisions of this chapter.

(Ord. 640 § 11, 1998)

No member of the city council shall be personally liable on the revenue bonds or be subject to any personal liability or accountability by reason of the issuance of bonds.

(Ord. 640 § 12, 1998)

The city may issue revenue bonds for the purpose of refunding any revenue bonds previously issued by the city under this chapter. The proceeds of any revenue bonds issued for the purpose of refunding outstanding revenue bonds may be applied to the purchase or retirement at maturity or redemption of those outstanding revenue bonds either on their earliest or any subsequent redemption date or upon the purchase or retirement at the maturity thereof and may, pending such application, be placed in escrow to be applied to the purchase or retirement at maturity or redemption of those outstanding revenue bonds on the date as may be determined by the city.

(Ord. 640 § 13, 1998)

An action to determine the validity of a reassessment and of any revenue bonds issued under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. For that purpose, the reassessment shall be deemed to be in existence upon its confirmation. No action or proceeding to review any of the proceedings, acts, or determinations made in the proceedings for the issuance of revenue bonds, or to enjoin the issuance of any revenue bonds, shall be maintained by any person, nor shall any person urge, plead or prove, the invalidity of any revenue bond in any action, unless the action is commenced within thirty days from the date of adoption of the resolution providing for the issuance of the revenue bonds.

(Ord. 640 § 14, 1998)

The validity of this chapter shall not be contested in any action or proceeding or defense unless such action or proceeding or defense shall have been brought or raised within thirty days from the date of the approval of the ordinance codified in this chapter by the city council. Unless an action or proceeding is commenced or such defense raised within such period, this chapter shall be held valid and in every respect legal and incontestable.

(Ord. 640 § 15, 1998)