California Government Code

§ 37351.5

GOV § 37351.5 Effective Sep 24, 1990Div. 3 · Title 4 · Part 2 · Ch. 5 · Art. 1

Statute text

(a)Prior to the entering into agreement to finance the lease or lease-purchase of property through the issuance of certificates of participation of lease revenue bonds, the legislative body of a city may elect, by resolution, to guarantee payment under that financing agreement in accordance with the following:

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

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

…

Legislative history

Added by Stats. 1990, Ch. 1177, Sec. 3. Effective September 24, 1990.