San Jose Municipal Code Part 3 Bond Issuance

The city is authorized and empowered:

A. To issue bonds for the purpose of financing the costs or otherwise assisting the acquisition or construction of any component of the airport authorized by this chapter.

B. To establish the terms and conditions for financing the acquisition or construction of any component of the airport undertaken pursuant to this chapter.

C. To employ or contract for such legal, consultant, underwriting, economic feasibility, or other services in connection with the financing of the airport or any portion thereof, as may be necessary in the judgment of the council for the successful financing of the airport and the issuance and sale of bonds.

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

(Ord. 26340.)

A. The 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 or subject to compounding at such time or times, be in such denominations, be in such form, carry such registration privileges, be executed in such manner, be payable in such currency, at such place or places, and be subject to such terms of redemption as the resolution or financing agreement approved by the council may provide.

B. The bonds may be issued as serial bonds or as term bonds, or both, or in any manner or form that the council, in its discretion, may determine.

C. The bonds may be sold at either a public or private sale and for such prices as the council shall determine.

(Ord. 26340.)

In the discretion of the council, any bonds issued under the provisions of this chapter may be issued under and secured by a financing agreement, which may contain such terms as the council may determine.

(Ord. 26340.)

Any resolution or financing agreement authorizing any bonds or any issue of bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the owners of the bonds:

A. The pledge of all or any part of the revenues, subject to such agreements with bond owners as may then exist.

B. The interest and principal to be received and other charges to be charged and the amounts to be raised each year thereby, and the use and disposition of the revenues.

C. The setting aside of reserves or sinking funds and the regulation and disposition thereof.

D. Limitations on the purposes to which the proceeds of a sale of any issue of bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the bonds or any issue of bonds.

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

F. The procedure, if any, by which the terms of any contract with bond owners may be amended or abrogated, the amount of bonds the owners of which must consent thereto, and the manner in which such consent may be given.

G. Specification of the acts or omissions to act which shall constitute a default with respect to the bonds, and providing the rights and remedies of such owners in the event of default.

H. Provision for the defeasance of the bonds and the discharge of the city's obligations with respect thereto.

I. Such other terms and conditions pertaining to the issuance of the bonds as are deemed advisable by the council, including, but not limited to, the issuance of taxable obligations under Section 5900 et seq. of the Government Code of the State; and the execution and delivery of any interest rate exchange agreements pursuant to Section 5920 of the Government Code of the State.

(Ord. 26340.)

A. Revenues, or any portion thereof, as designated in the resolution or financing agreement authorizing the issuance of the bonds, shall be the sole source of funds pledged by the city for repayment of bonds issued hereunder.

B. Bonds issued hereunder 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 revenues.

C. The issuance of bonds shall not directly, indirectly or contingently obligate the council to levy or pledge any form of taxation, or to make any appropriation for their payment except from the revenues pledged to the payment of the bonds.

(Ord. 26340.)

A. All moneys received pursuant to the provisions of this chapter, whether proceeds from the sale of bonds or revenues or other moneys or assets authorized by this chapter to be pledged to secure payment of bonds, shall, to the extent set forth in the resolution or financing agreement authorizing the issuance of the bonds, be deemed to be trust funds to be held and applied solely for the purposes of this chapter.

B. Any bank or trust company in which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this chapter, subject to the terms of the resolution or financing agreement authorizing the bonds.

(Ord. 26340.)

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 its agreement with bond owners.

(Ord. 26340.)