Los Angeles Municipal Code Art. 6.4 Procedures for Issuance and Sale of Revenue Bonds Secured by the

SANITATION EQUIPMENT CHARGE SPECIAL REVENUE FUND

Section 11.27.50 Power of the Council. 11.27.51 Resolution Authorizing Bonded Indebtedness. 11.27.52 Sale of the Bonds. 11.27.53 Signature, Countersignatures. 11.27.54 Related Powers and Documents. 11.27.55 Bonds as Special Obligations of the City. 11.27.56 Requirements of Constitution. 11.27.57 Action to Determine Validity of Bonds. 11.27.58 Effect of Provisions of Article on Validity of Sale of the Bonds; Severability.

The Council, exercising the powers reserved to the City under the Constitution of the State of California, and its power under Section 361 of the Charter of the City, may determine that revenue bonds, notes and other evidences of indebtedness (collectively, the “Bonds”) shall be issued as provided in this article to acquire equipment and facilities payable from the Sanitation Equipment Charge Special Revenue Fund of the City established pursuant to Article 7 of Chapter 6 of Division 5 of the Los Angeles Administrative Code. This article provides an alternative method of issuing such Bonds and the provisions set forth herein do not preclude the Council from issuing such Bonds under powers conferred by any other law.

SECTION HISTORY

Article and Section Added by Ord. No. 174,129, Eff. 9-1-01.

Whenever the Council deems it necessary for the City to incur a bonded indebtedness under this article to fund or refund all or any portion of the acquisition of equipment and/or facilities payable from the Sanitation Equipment Charge Special Revenue Fund, it shall adopt a resolution which resolution shall, at a minimum:

(a) State that the Council deems it necessary to incur the bonded indebtedness and authorizes the issuance of Bonds.

(b) Specify the amount of the debt to be incurred.

(c) State the maximum term of the Bonds to be issued, which term shall not exceed 30 years.

(d) Specify the maximum rate of interest which the Bonds shall bear, which interest may be either fixed or variable or a
combination thereof.

(e) Provide for the issuance of the Bonds pursuant to a master indenture or master trust agreement and a supplemental indenture or
supplemental trust agreement (collectively, the “Indenture”). The Indenture shall, among other things, prescribe the form of the
Bonds, the time and place for payment of the principal and interest on the Bonds, may provide for events of defaults and the rights and
remedies arising from any such defaults, and may provide for the redemption of the Bonds issued under this article before maturity at
determined prices.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

The City may sell the Bonds (including refunding Bonds) in one or more series at such times and in such manner as the Council deems to be in the public interest, and such Bonds may be sold by competitive sale or by private sale at a price above or below par with such terms and conditions as shall be acceptable to the Council.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

The Bonds shall be signed by the Mayor, and by the City Treasurer or a Deputy City Treasurer and shall be countersigned by the City Clerk or a Deputy City Clerk or shall be signed and countersigned in such other manner as shall be acceptable to the Council as set out in the Indenture or by resolution. All signatures and countersignatures may be printed, lithographed or otherwise mechanically reproduced except that one signature must be signed manually. If any officer whose signature appears on the Bonds ceases to be an officer before the delivery of the Bonds, the officer’s signature shall be as effective as if the officer had remained in office.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

The Indenture may provide for vesting in a trustee the right to receive revenues from the Sanitation Equipment Charge Special Revenue Fund and to enforce covenants set forth in the Indenture. The Council may further provide, in the Indenture or in separate documents and agreements for other acts and things which it deems necessary, convenient or desirable to provide for the issuance of the Bonds or tending to make them more marketable, including, but not limited to, the provision of bond insurance or other credit support for the Bonds, the entering into of continuing disclosure obligations, and the completion and filing of reports required by the Internal Revenue Code and the laws of the State of California.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

Bonds issued under this article shall be secured by and payable as to principal, premium (if any) and interest solely from the Sanitation Equipment Charge Special Revenue Fund of the City established pursuant to Article 7 of Chapter 6 of Division 5 of the Los Angeles Administrative Code, with such priority on payment from said Sanitation Equipment Charge Special Revenue Fund as shall be set out in the Indenture or by resolution. The General Fund of the City shall not be liable for payment of principal, premium or interest on the Bonds and the holders of the Bonds shall have the right solely to compel the City to pay said Bonds from the Sanitation Equipment Charge Special Revenue Fund at the times, in the amounts and in the manner set out in the Indenture. Nothing in this article, however, shall preclude the City from voluntarily advancing any other lawfully available moneys to the payment of principal, premium or interest on the Bonds.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

The Bonds shall not constitute indebtedness of the City for purposes of Section 18 of Article XVI of the California Constitution.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

An action to determine the validity of bonds may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.

This article provides complete and independent authority for the issuance of Bonds and no action or proceeding other than those required by this article shall be necessary for the valid authorization and issuance of Bonds. The provisions of the article shall be liberally construed to effect its purposes. If any portion of this article is declared illegal, invalid or unenforceable (other than Section 11.27.50), then such portion of this article, and such illegality, invalidity or unenforceability shall not affect the remaining provisions hereof.

SECTION HISTORY

Added by Ord. No. 174,129, Eff. 9-1-01.