Oroville Municipal Code Art. 2 Financing Health Facilities

The city may make, purchase, or otherwise contract for the making of a mortgage or other loan, upon such terms and conditions as the city shall deem proper, to any participating health institution for the cost of a health facility.

(Ord. 1468 § 1(201))

The city may make, purchase, or otherwise contract for the making of, a mortgage or other secured or unsecured loan, upon such terms and conditions as the city shall deem proper, to any participating health institution to refund or refinance outstanding obligations of such participating health institution incurred to finance the cost of a health facility, including expenses incident to paying or otherwise discharging the obligations to be refunded or refinanced, whether such obligations were incurred prior to or after the enactment of this chapter, if the city finds that such refunding or refinancing is in the public interest and either alleviates a financial or operating hardship or such participating health institution, or is in connection with other financing by the city for such participating health institution, or may be expected to result in lower costs of health care than would otherwise prevail and a saving to third parties, including government, and to others who must pay for care, or any combination thereof.

(Ord. 1468 § 1(202))

A. The city may acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip, own, and lease as lessee a health facility for the purpose of selling or leasing such health facility to a participating health institution, and may contract with such participating health institution to undertake on behalf of the city to construct, enlarge, remodel, renovate, alter, improve, furnish, and equip such health facility.

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

(Ord. 1468 § 1(203))

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

(Ord. 1468 § 1(204))

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

(Ord. 1468 § 1(205))

The city may fix rents, payments, fees, charges and interest rates for financing under this chapter 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 chapter, including city administrative expenses.

(Ord. 1468 § 1(206))

The city may hold deeds of trust, mortgages or security interests as security for loans and other obligations under this chapter and may pledge or assign the same as security for repayment of bonds. Such deeds of trust, mortgages or security interests 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. 1468 § 1(207))

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 chapter.

(Ord. 1468 § 1(208))

A. Participating health institutions may apply for financing pursuant to this chapter by filing an application with the city on such forms as specified by the city pursuant to Section 15.80.080(B) of this Code pertaining to industrial development bonds.

B. The application shall also include the following:

1. An estimate of the maximum amount of bonds proposed to be issued, of the sources of amounts otherwise required for the project; and an itemization of the estimated costs and any other expenses;

2. The application shall be supplemented with a commitment by the participating health institution to comply, and/or to assist the city in complying, with all state and federal laws in the issuance of the bonds, including, without limitation, the making of any required application to a governmental department for authorization, qualification or registration of the offer, issuance or sale of the bonds, or any permit or other authorization of such governmental department, prior to the delivery by the city of such bonds;

3. The application shall be supplemented with a commitment by the participating health institution to cause and/or to assist the city in causing to be printed any prospectus or any written or printed communication proposed to be published in connection with the issuance, offer or sale of the bonds prior to the delivery by the city of such bonds and, if deemed necessary by the city, the following delivery of such bonds;

4. All commitments by the participating health institution shall specifically provide for the participating health institution to pay all expenses in connection with the issuance, offer or sale of the bonds, whether or not they are finally issued, to hold the city harmless from any and all expenses related thereto, and to pay items on an ongoing basis so that neither the city, nor its advisors, attorneys, employees and the like will accumulate any claims against the city;

5. All additional information, agreements and undertakings as the city may require which are submitted to the city by a participating health institution shall be reproduced in written, printed or other tangible form, shall be supplied in as many copies as the city prescribes and shall be deemed supplements or amendments to the application.

C. Applications for financing by participating health institutions not reasonably in accordance with the requirements of this section need not be accepted and further processed.

D. Receipt of any application in no way obligates the city to finance or refinance the health facility proposed.

(Ord. 1468 § 1(209))

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

(Ord. 1468 § 1(210))