Watsonville Municipal Code Art. 3 Bonds

The City is hereby authorized to issue bonds in an aggregate principal amount not to exceed One Hundred Million and no/100ths ($100,000,000.00) Dollars and to issue such bonds from time to time in such series and amounts as are determined by the Council to be necessary or appropriate to provide for the costs of facilities approved by the Council. Bonds shall be negotiable instruments for all purposes, subject only to the provisions of such bonds for registration.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

All of the bonds hereby authorized to be issued shall be limited obligations 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 the payment of bonds. Such revenues, moneys, or assets shall be the sole source of repayment of such issue of bonds. Bonds issued as authorized by 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.

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 of Watsonville is pledged to the payment of the principal of or premium, if any, or interest on this bond.”

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

Bonds shall be issued as serial bonds, term bonds, installment bonds, or pass-through certificates or any combination thereof. The Mayor or City Manager shall determine the terms and timing of the issuance of particular bonds in accordance with the resolution of the Council approving the particular facility to be financed thereby. Bonds shall bear such date or dates, mature at such time or times not to exceed forty (40) years, bear interest at such fixed or variable rate or rates approved by the participating party whose facility is being financed but not to exceed the maximum rate permitted by law, be payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, 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 to be entered into by the City pursuant to such resolution, shall provide. Bonds shall be sold at either public or private sale and for such prices as the City shall determine.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

Any resolution relating to the issuance of any bonds, or any indenture to be entered into by the City pursuant to such resolution, 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 the sale of such bonds may be applied and the pledge or assignment of such proceeds to secure the payment of such bonds;

(c) Limitations on the issuance of additional parity bonds, the terms upon which additional parity bonds may be issued and secured, and the refunding of outstanding bonds;

(d) The setting aside of reserves, sinking funds, and other funds 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 of such revenues, moneys, and assets, subject to such agreements with the holders of bonds as may then be outstanding;

(f) Limitations on the use of revenues for operating, administration, or other expenses of the City;

(g) The specification of the acts or omissions to act which shall constitute a default in the duties of the City to the 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;

(h) 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 trust, mortgages, leases, subleases, sale contracts, and any other contracts to such trustee, and the rights of such trustee;

(i) 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

(j) Any other provision which the Council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

Any pledge of revenues or other moneys or assets as authorized by 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.

(§ l, Ord. 541-81 C-M, eff. January 21, 1982)

Neither the members of the Council, the officers or employees of the City, nor any person executing any bond shall be liable personally on the bonds on be subject to any personal liability or accountability by reason of the issuance thereof.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

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.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

Any holder of bonds issued under the provisions of this chapter or any of the coupons appertaining thereto, and any trustee appointed pursuant to any resolution relating to 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 and may enforce and compel the performance of all duties required by this chapter or by 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.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

The City is hereby authorized to issue bonds for the purpose of refunding any bonds then outstanding.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

In anticipation of the sale of the bonds authorized by this chapter, the City is hereby authorized to issue bond anticipation notes, and to renew the same from time to time, in such series and amounts as are determined by the Council to be necessary or appropriate for the costs of facilities approved by the Council. Such notes shall be payable from revenues or other moneys or assets authorized by this chapter to be pledged to secure the payment of bonds, and which are not otherwise pledged, or from the proceeds of the sale of the particular bonds in anticipation of which they are issued. Such notes shall be issued in the same manner as bonds. The Mayor on City Manager shall determine the terms and timing of the issuance of particular bond anticipation notes in accordance with the provisions of Section 3-10.310 of this article and the resolution of the Council approving the particular facility to be financed thereby. Such notes, any resolution relating to the issuance of such notes, and any indenture to be entered into by the City pursuant to such resolution may contain any provision, condition, or limitation permitted under Section 3-10.315 of this article.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)

The validity of the authorization and issuance of any bond shall not be dependent on and shall not be affected in any way by any proceeding taken by the City for the approval of any financing or the entering into of any agreement, or by the failure to provide financing or enter into any agreement, for which bonds are authorized to be issued under this chapter.

(§ 1, Ord. 541-81 C-M, eff. January 21, 1982)