Article I — General Provisions and Definitions

This chapter may be cited as the City of Santa Clara insurance program bond law. (Ord. 1562 § 1, 2-3-1987; Formerly § 14-1)

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 for the creation of insurance reserves for the City in the interests of the public health, safety, and welfare. (Ord. 1562 § 1, 2-3-1987; Formerly § 14-2)

Unless the context otherwise requires, the following definitions shall govern the construction of this chapter:

(a) "Bonds"

means any bonds, notes, interim certificates, debentures, or other obligations issued by the City pursuant to this chapter, which are payable exclusively from proceeds of the bonds, the escrow, and other funds permitted by this chapter.

(b) "Chapter"

means this chapter of the Santa Clara City Code, as amended from time to time in accordance herewith.

(c) "Charter"

means the Charter of the City, as amended from time to time.

(d) "City"

means the City of Santa Clara, California, a charter city in the State existing under and exercising powers pursuant to the Charter and the Constitution of the State.

(e) "City Council"

means the City Council of the City.

(f) "Escrow"

means any agreement between the City, a bond trustee, and an escrow holder under which the proceeds of the bonds are deposited with such escrow holder and dedicated to:

• (1) The payment of the principal of and interest on the bonds; and

• (2) The discharge of one or more judgments.

(g) "Judgment"

means a judgment entered in a court of competent jurisdiction against the City or any of its members, officers, agents, and employees determining that the City is liable to a third party to pay monetary damages for direct or contingent loss or liability for damages for bodily and personal injury, death, or property damage for any reason whatsoever.

(h) "Program"

means the self insurance program of the City under which the City has set aside certain reserves, including proceeds of the bonds, to discharge one or more judgments.

(i) "State"

means the State of California.

(Ord. 1562 § 1, 2-3-1987; Formerly § 14-3)