Chapter 2. Formation And Powers Of An Authority of California Harbors And Navigation Code >> Division 6. >> Part 1. >> Chapter 2.
(a) Any two or more harbor agencies may, pursuant to the
joint powers law, establish an authority, separate from the parties
to the agreement, for the purpose, in addition to any other purpose
permitted under the joint powers law, of establishing an
infrastructure fund and financing port or harbor infrastructure
pursuant to this part.
(b) An authority may be formed as a nonprofit public benefit
corporation subject to the nonprofit corporation law (Division 2
(commencing with Section 5000) of Title 1 of the Corporations Code),
for the purpose of establishing an infrastructure fund and financing
port or harbor infrastructure pursuant to this part.
An authority established pursuant to Section 1700 shall
deposit into an infrastructure fund established by the authority all
of the following:
(a) Any federal, state, or private grants received by the
authority directly or by assignment or other transfer from the state,
any member, or any other public body.
(b) Any other money of, or received by, the authority, which the
authority determines to deposit in the infrastructure fund.
(c) Any public trust revenues deposited into an infrastructure
account shall continue to be public trust assets subject to Section
6306 of the Public Resources Code.
An authority may establish one or more subaccounts within the
infrastructure fund, and may treat each subaccount as separate and
distinct. Money in the infrastructure fund may be invested in any
instrument permitted by Section 53601 of the Government Code.
However, any money in any subaccount which is separately pledged to
secure or pay bonds may be invested in, or may be limited to
investments in, any instrument permitted by the resolution or
indenture providing for the issuance of the bonds. Any investment
income earned on the investment of money in an infrastructure fund
shall be credited to the infrastructure fund unless, and to the
extent that, federal or state law or agreement, pursuant to which
moneys were deposited into the fund, requires otherwise. Any income
earned on the investment of money in any subaccount shall be credited
to the subaccount unless, and to the extent that, the authority
establishing the fund determines otherwise.
Subject to the terms and conditions determined by an
authority that establishes an infrastructure fund, including, but not
limited to, any terms and conditions related to interest rates,
payment, prepayment, pledges, security, remedy for defaults, the
funds in an infrastructure fund, or any subaccount therein, may be
used for one or more of the following purposes:
(a) To make loans to, or to enter into an installment sale or
other agreement with, any member or other harbor agency for the
purpose of financing or refinancing any port or harbor
(b) To purchase, refinance, or restructure bonds issued by any
member or other harbor agency in whole or in part to finance or
refinance any port or harbor infrastructure.
(c) To secure or guarantee, or to purchase, pay for, or reimburse
any guaranty, insurance, or other credit enhancement of, any bonds
issued by the authority, any member, or any harbor agency, if the
bonds were issued in whole or in part to finance or refinance any
port or harbor infrastructure.
(d) To pay the costs of administering the infrastructure fund or
the authority, including any costs of issuance of bonds issued by the
authority to finance or refinance port or harbor infrastructure.
In addition to any purpose authorized under the joint powers
law for which bonds may be issued, an authority may issue bonds in
the manner set forth in Article 4 (commencing with Section 6584) of
Chapter 5 of Division 7 of Title 1 of the Government Code, to finance
or refinance any port or harbor infrastructure or to make deposits
into the infrastructure fund or any subaccount thereof, except that a
nonprofit public benefit corporation may issue bonds only to the
extent authorized by a joint powers agreement.
Exclusively for purposes of securing the financing of port or
harbor infrastructure, any harbor agency may borrow funds from, or
otherwise secure financing through, an authority at the interest rate
or rates, with the maturity date or dates, payment, pledge,
security, default, remedy, and other terms and conditions specified
in bonds of the harbor agency or obtain a loan, loan purchase,
installment purchase, lease, or other agreement between the authority
and the harbor agency. The harbor agency also may enter into any
agreement for liquidity or credit enhancement that may be necessary
or appropriate, as determined by the authority and consistent with
other provisions of law, in connection with the borrowing or loan.
This section provides a complete, additional, and alternative method
for performing the acts authorized by this section.
(a) Before any public funds are allocated pursuant to this
part for a privately owned port or harbor infrastructure, as
specified in subdivision (b) of Section 1698, approval of the
Treasurer is required.
(b) Each authority shall submit an annual report regarding
receipts and expenditures from the infrastructure fund and all
financing activities to the Controller and to the California Debt