California Government Code

§ 25350.55

GOV § 25350.55 Effective Aug 5, 2004Div. 2 · Title 3 · Part 2 · Ch. 5 · Art. 1

Statute text

(a)Prior to entering into an agreement to finance the lease or lease-purchase of property through the execution and delivery or issuance, as the case may be, of certificates of participation or lease revenue bonds, the board may elect, by resolution, to guarantee payment under that financing agreement in accordance with the following:

(1)A county that elects to participate under this section shall provide notice to the Controller of that election, which shall include a schedule for the payments to be made by the county under that financing agreement, and identify a trustee appointed by the county for the purposes of this section.

(2)In the event that, for any reason, the funds otherwise available to the county will not be sufficient to make any payment under the financing agreement at the time that payment is required, the county shall so notify the trustee. The trustee shall immediately communicate that information to the affected holders of certificates of participation or bondholders, and to the Controller.

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Legislative history

Amended by Stats. 2004, Ch. 211, Sec. 9. Effective August 5, 2004.