Article 3 — Bonds

• A. The city may, from time to time, issue bonds for any of the purposes specified in Sections 3.36.040 through 3.36.060. 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 a limited obligation of the city payable from all or any specified part of the revenues and the moneys and assets authorized in this chapter 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 chapter 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 is pledged to the payment of the principal of or premium, if any, or interest on this bond. (Ord. 1468 § 1(301))

In determining the amount of bonds to be issued, the city may include all costs of the issuance of such bonds, reserve funds, and capitalized bond interest. (Ord. 1468 § 1(302))

Bonds may be issued as serial bonds, term bonds, installment bonds or pass-through certificates or any combination thereof. 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 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 resolution 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 shall determine. (Ord. 1468 § 1(303))

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

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City of Oroville, CA § 3.36.170

OROVILLE CODE

§ 3.36.200

applied, and the pledge or assignment of such proceeds to secure the payment of such bonds;

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

• D. The setting aside of reserves and sinking funds and such other funds as are necessary or appropriate and the regulation and disposition thereof;

• E. The pledge or assignment of all or any part of the revenues, and of any other moneys or assets legally available therefor (including loans, deeds of trust, mortgages, leases, subleases, sales agreements and other contracts and security interests) and the use and disposition thereof, subject to such agreements with the holders of bonds as may then be outstanding;

• F. Specification of the acts or omissions to act which shall constitute a default in the duties of the city 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;

• G. 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 trusts, mortgages, leases, subleases, sales agreements, and any other contracts or security interests to such trustee, and the rights of such trustee;

• H. The procedure, 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; and

• I. Any other provisions which the council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders.

• (Ord. 1468 § 1(304))

Any pledge of revenues or other moneys or assets pursuant to the provisions of this chapter 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. 1468 § 1(305))

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. 1468 § 1(306))

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City of Oroville, CA

REVENUE AND FINANCE

§ 3.36.200

§ 3.36.230

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

(Ord. 1468 § 1(307))

Any holder of bonds issued under the provisions of this chapter, and any trustee appointed pursuant to any resolution 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 proceedings, protect or enforce any and all rights specified in law or in 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. 1468 § 1(308))

• 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 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 B of this section may be invested and reinvested as provided in the resolution or indenture. Any interest or other increment earned or realized on any such investment may be applied to the payment of the outstanding bonds to be refunded or to the payment of interest on the refunding bonds.

• D. All bonds issued pursuant to this section shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter.

• (Ord. 1468 § 1(309))

In anticipation of the sale of bonds, the city may issue bond anticipation notes and may renew the same from time to time. Such notes shall be payable from any revenues or other moneys authorized by this chapter to be pledged to secure payment of bonds which are not otherwise pledged, or from the proceeds of sale of the bonds in anticipation of which they were issued. Such notes shall be issued in the same manner as bonds. Such notes and the resolution or indenture providing for their issuance may contain any provisions, conditions or limitations

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City of Oroville, CA

OROVILLE CODE

§ 3.36.230

§ 3.36.240

which a bond, or a resolution or indenture providing for the issuance thereof, may contain. (Ord. 1468 § 1(310))

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 approval of any financing or 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 chapter. (Ord. 1468 § 1(311))

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City of Oroville, CA

REVENUE AND FINANCE

§ 3.36.250

§ 3.36.280