Section 485.9 Of Article 4. Appropriation, Security, Sale And Funds From California Military And Veterans Code >> Division 2. >> Part 1. >> Chapter 10. >> Article 4.
485.9
. Whenever the National Guard Members' Finance Committee finds
that the interest rate then fixed and charged by the department on
any purchase contract is not adequate to meet the covenants or
requirements of any resolution of issuance, the National Guard
Members' Finance Committee shall specify the amount of the increased
rate of interest to be charged on all purchase contracts acquired
with the proceeds of or otherwise allocable to the revenue bonds
issued pursuant to the resolution of issuance on all purchase
contracts if they bear a uniform rate of interest. The department
shall increase the interest rate on those purchase contracts which
are specified by the National Guard Members' Finance Committee. Such
increased interest rate will take effect on the first day of the
second calendar month next succeeding the date of such action and
shall remain in effect until such time as the National Guard Members'
Finance Committee consents to the reduction thereof. The National
Guard Members' Finance Committee shall not consent to any reduction
in the interest rate then fixed unless:
(a) The revenues in the preceding fiscal year produced by the
interest rate or rates then in effect are in excess of all
requirements of all resolutions of issuance under which revenue bonds
are then outstanding, and
(b) The interest rate or rates so reduced will produce revenues
for each subsequent fiscal year while any revenue bonds are
outstanding in the aggregate amount required by all resolutions of
issuance under which such revenue bonds are outstanding.