Division III — HEALTH FACILITIES BONDS

This Division may be cited as the "City of Long Beach Charitable Institutions Revenue Bond Law".

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The Council hereby finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City to be authorized to provide financing to charitable institutions within the City that provide facilities and services to residents of the City in order to aid such charitable institutions in containing costs and thereby to enable such charitable institutions to lower costs to the public and to provide better and more efficient service than would otherwise prevail. Unless the City intervenes to provide such financing,

the costs of providing such facilities and services may increase at an ever-accelerating pace because such institutions cannot obtain financing at reasonable rates from private sources.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Unless the context otherwise requires, the terms defined in this Division shall have the following meanings:

A.

"Bonds" means any bonds, notes, certificates, debentures or other obligations issued or entered into by the City pursuant to this Division and payable exclusively from revenues as in this Division defined and from any other funds specified in this Division upon which such obligations may be made a charge and from which they are made payable.

B.

"City" means the City of Long Beach.

C.

"Cost" means the total of all costs incurred by or on behalf of a participating institution necessary or incident to the acquisition, construction, rehabilitation or improvement of a facility, or the refunding or refinancing of obligations incurred to finance such acquisition, construction, rehabilitation or improvements as are approved by the City as reasonable and necessary for carrying out all works and undertakings necessary or incident to acquisition, construction, financing or refinancing of a facility.

D.

"Council" means the City Council of the City of Long Beach.

E.

"Facility" means any facility, place or building within the City which is maintained and operated for charitable purposes consistent with the purposes for which a participating institution is organized, as evidenced by its articles and bylaws or other Charter documents, and by a determination letter from the Internal Revenue Service, which facility is available to, and serves, the general public of the City. "Facility" shall include any and all structures or improvements related or appurtenant to a facility, required or useful for its operation, but shall not include any facility or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

F.

"Participating institution" means a private nonprofit corporation or association authorized by the laws of the State of California to provide or operate a facility as defined in this Division and which, pursuant to the provisions of this Division, undertakes the financing of the acquisition and construction of a facility or undertakes the refunding or refinancing of obligations incurred to finance the acquisition and construction of a facility.

G.

"Revenue" means amounts received or to be received by the City as repayment of principal, interest, and all other charges with respect to a loan under this Division, any proceeds received by the City from mortgage, hazard or other insurance on or with respect to such a loan, all other rents, charges, fees, income and receipts derived by the City from the financing or refinancing of a facility under this Division, any amounts received by the City as investment earnings on moneys deposited in a reserve fund or any similar fund securing bonds, and such other moneys as the Council may, in its discretion, lawfully designate as revenues.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Subdivision 2. - Financing Health Facilities

A.

The City may make, purchase, or otherwise contract for the making of, a secured loan, upon such terms and conditions as the City shall deem proper, to any participating institution with a facility located or to be located in the City, or to any corporation which is a nonprofit corporation in California or a sister State of the United States of America which is the sole member of a participating institution located or to be located in the City, for the cost of acquiring or constructing a health facility or financing thereof; provided, however, that no such loan shall exceed the total cost of such facility as determined by the participating institution and approved by the City.

B.

The City may make, purchase, or otherwise contract for the making of a secured loan, upon such terms and conditions as the City shall deem proper, to any participating institution located or to be located in the City, or to any corporation which is a nonprofit corporation in California or a sister State of the United States of America which is the sole member of a participating institution located or to be located in the City, or exchange its bonds in order to refund or refinance outstanding obligations of such participating institution incurred to finance the cost of acquiring or constructing a facility, whether or not such obligations were incurred prior to or after the enactment of this Division, if the City finds that such refunding or refinancing is in the public interest and either alleviates a financial or operating hardship of such participating institution, or is in connection with other financing by the City for such participating institution or may be expected to result in lower charges or expenses or containment of the rate of increase thereof, or any combination thereof.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip, own or lease as lessee a facility for the purpose of simultaneously selling or leasing such facility to a participating institution located or to be located in the City, or to any corporation which is a nonprofit corporation in California or a sister State of the United States of America which is the sole member of a participating institution located

or to be located in the City, and may designate such participating institution as its agent to undertake to construct, enlarge, remodel, renovate, alter, improve, furnish, and equip such facility.

The City may sell or lease, upon such terms and conditions as the City shall deem proper, to any such participating institution or member corporation any facility owned by the City under this Division, including a health facility conveyed to the City in connection with a financing under this Division but not being financed or refinanced hereunder.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may charge participating institutions and member corporations application, commitment, financing and other fees, in order to recover all administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may obtain, or aid in obtaining, from any department or agency of the United States or of the State of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this Division; and may accept payment in such manner and form as provided therein in the event of a default by a institution or member corporation, and may assign any such insurance or guarantee as security for bonds.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may fix rents, payments, fees, charges and interest rates for financing under this Division and may agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on bonds, losses due to defaults or changes in other expenses related to this Division, including City administrative expenses.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may hold deeds of trust or mortgages as security for loans under this Division and may pledge or assign the same as security for repayment of bonds. Such deeds of trust or mortgages may be assigned to, and held on behalf of the City by, any bank or trust company appointed to act as trustee by the City in any resolution or indenture providing for issuance of bonds.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City may employ such engineering, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the City for the purposes of this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

In addition to all other powers specifically granted by this Division, the City may do all things necessary or convenient to carry out the purposes of this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

A.

The City may, from time to time, issue bonds for any of the purposes specified in Sections 3.52.320 and 3.52.321. Bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration.

B.

Every issue of bonds shall be limited obligation of the City payable solely from all or any specified part of the revenues and the moneys and assets authorized in this Division to be pledged or assigned to secure payment of bonds. Such revenues, moneys or assets shall be the sole source of repayment of such issue of bonds. Bonds issued under the provisions of this Division shall not be deemed to constitute a debt or liability of the City or a pledge of the faith and credit of the City but shall be payable solely from specified revenues, moneys and assets. The issuance of bonds shall not directly, indirectly, or contingently obligate the City to levy or pledge any form of taxation or to make any appropriation for their payment.

C.

All bonds shall contain on the face thereof a statement to the following effect:

Neither the faith and credit nor the taxing power of the City of Long Beach, the State of California, nor any political subdivision thereof is pledged to the payment of the principal of or premium or interest on this bond.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

In determining the amount of bonds to be issued, the City may include all costs of the issuance of such bonds, reserves for debt service and for repairs, replacement, additions and improvements, and capitalized bond interest for such period as the City may determine.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Bonds may be issued as serial bonds, term bonds, installment bonds or pass-through certificates of participation, revenue notes or any combination thereof, in any interest rate mode designated for the bonds. Bonds shall be authorized by resolution of the Council and shall bear such date or dates, mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denominations, be in such form, either book-entry or certificated, be executed in such manner, be payable in lawful money of the United States of America at such place or places, be subject to such terms of redemption and have such other terms and conditions as such resolutions or any indenture authorized by such resolution to be entered into by the City may provide. Bonds may be sold at either a public or private sale and for such prices as the City, acting on behalf of the participating institution, shall determine. Pending preparation of definitive bonds, the City may issue temporary bonds, which shall be exchanged for such definitive bonds when prepared.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Any resolution authorizing any bonds or any issue of bonds, or any indenture authorized by such resolution to be entered into by the City, may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of such bonds:

A.

The terms, conditions and form of such bonds and the interest and principal to be paid thereon.

B.

Limitations on the uses and purposes to which the proceeds of sale of such bonds may be applied, and the pledge or assignment of such proceeds to secure the payment of such bonds.

C.

Limitations on the issuance of additional parity bonds, the terms upon which additional parity bonds may be issued and secured, and the refunding of outstanding bonds.

D.

The setting aside of reserves, sinking funds, and such other funds as are necessary and the regulation and disposition thereof.

E.

The pledge or assignment of all or any part of the revenues and the use and disposition thereof, subject to such agreements with the holders of bonds as may then be outstanding.

F.

Limitation on the use of revenues for expenditures for maintenance and operation, administration or other expenses of the City.

G.

Specification of the acts or omissions to act which shall constitute a default in the duties of the City, a participating institution or a member corporation to holders of such bonds, and providing the rights and remedies of such holders in the event of default, including any limitations on the right of action by individual bondholders.

H.

The appointment of a corporate trustee to act on behalf of the City and the holders of its bonds, the pledge or assignment of loans, deeds of trust, mortgages and any contracts or agreements to such trustee, and the rights of such trustee.

I.

The procedures, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of such bonds, the holders of which must consent thereto, and the manner in which such consent may be given.

J.

Any other provisions which the Council may deem reasonable and proper for the purposes of this Division and the security of the bondholders.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Any pledge of revenues, other moneys or assets, or any centralized pool of said revenues, other moneys or assets, pursuant to the provisions of this Division shall be valid and binding from the time such pledge is made. Revenues, moneys and assets so pledged and thereafter received by the City shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the City, irrespective of whether such parties have notice thereof. Neither the resolution nor any indenture by which a pledge is created need be filed or recorded except in the records of the City.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Neither the members of the Council, the officers or employees of the City, nor any person executing any bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1, (part), 1983)

The City shall have the power out of any funds available therefor to purchase bonds issued hereunder. The City may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with the bondholders.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

Any holder of bonds issued under the provisions of this Division and any trustee appointed pursuant to any resolution or indenture authorizing the issuance of bonds, except to the extent the rights thereof may be restricted by such resolution or any indenture authorized thereby to be entered into by the City may, either at law or in equity, by suit, action, mandamus, or other proceeding protect or enforce any and all rights specified in law or in such resolution or indenture, and may enforce and compel the performance of all duties required by this Division or by such resolution or indenture to be performed by the City or by any officer, employee or agent thereof, including the fixing, charging, and collecting of rates, fees, interest, and charges authorized and required by the provisions of such resolution or indenture to be fixed, charged, and collected.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

A.

The City may issue bonds for the purpose of refunding any bonds then outstanding, including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or any subsequent date or dates of redemption, purchase, or maturity of such bonds.

B.

The proceeds of bonds issued for the purpose of refunding any outstanding bonds may, in the discretion of the participating institution and the City, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds, either at their earliest or any subsequent redemption date or dates or upon the purchase or retirement at the maturity thereof and may, pending such application, be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date or dates as may be determined by the City.

C.

Pending use for purchase, retirement at maturity or redemption of outstanding bonds, any proceeds held in escrow pursuant to Subsection 3.52.338.B may be invested and reinvested as provided in the applicable resolution or indenture. Any interest or other increment earned or realized on any such investment may be applied to the payment of the bonds to be refunded or to the payment of interest on the refunding bonds. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned on such proceeds and any interest or increment earned or realized from the investment thereof may be returned to or upon the order of the participating institution to be used by it for any lawful purpose.

D.

All bonds issued pursuant to this Section shall be subject to the provisions of this Division in the same manner and to the same extent as other bonds issued pursuant to this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The validity of the authorization and issuance of any bonds is not dependent on and shall not be affected in any way by any proceedings taken by the City for the making of any loan or the entering into of any agreement, or by the failure to make any loan or enter into any agreement, for which bonds are authorized to be issued under this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

This Division, being necessary for the welfare of the City and its inhabitants, shall be liberally construed to effect its purposes.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

If the jurisdiction of the Council to order the proposed act is not affected, any omission of any officer of the City in proceedings under this Division or any other defect in the proceedings shall not invalidate such proceedings or the bonds issued pursuant to this Division.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

This Division is full authority for the issuance of bonds by the City for the purposes specified herein.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

This Division shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds under the provisions of this Division need not comply with the requirements of any other law applicable to the issuance of bonds. The purposes authorized hereby may be effectuated and the bonds may be issued for any such purposes under this Division notwithstanding that any other law may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in any other law.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

To the extent that the provisions of this Division are inconsistent with the provisions of any general statute, a special act or parts thereof, including the Long Beach Municipal Code provisions or City Charter provisions respecting Revenue Bonds, the provisions of this Division shall be deemed controlling.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)

The City Council and City staff may, from time to time, establish policies respecting the issuance of bonds hereunder, including a fee schedule for City costs and expenses and minimum requirements for ratings that are assigned to the City's bonds issued hereunder.

(Ord. C-7636 § 1, 1999)

If any section, subsection, sentence, clause or phrase of this Division is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Division. The City Council hereby declares that it would have adopted this Division and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one (1) or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

(Ord. C-7636 § 1, 1999: Ord. C-5971 § 1 (part), 1983)