Article 7. Remedies Of Revenue Bondholders of California Military And Veterans Code >> Division 2. >> Part 1. >> Chapter 10. >> Article 7.
Any revenue bondholder may by mandamus or other appropriate
proceedings compel the performance of any of the duties imposed upon
any state official or employee or imposed upon the department or its
officers, agents, or employees with respect to the collection of
revenues from pledged contracts entered into by the department with
veterans, and the investment and disbursement of the proceeds
received from the sale of revenue bonds.
The department may, in any resolution of issuance, define
the events of default, including among other things, default in the
payment of the principal or interest upon or premium due upon any
revenue bonds or default by the department in the observance of any
of the covenants, agreements, or conditions on its part to be
performed under the resolution of issuance, and may provide that upon
the happening of any such event of default the holders of not less
than the majority in aggregate principal amount of the revenue bonds
at the time outstanding will be entitled to declare the principal of
all of the revenue bonds then outstanding and the interest accrued
thereon to be immediately due and payable.
Whenever a bank or trust company is acting as trustee by
reason of any default, or for the protection of the interests of the
revenue bondholders, the bank or trust company as such trustee shall
take such action as the holders or registered owners of 25 percent in
principal amount of all the revenue bonds then outstanding shall
request in writing; provided, that the bank or trust company as such
trustee may request reasonable security before taking any action so
No remedy conferred upon or reserved to the holders of
revenue bonds is intended to be exclusive of any other remedy or
remedies now or hereafter provided by law and each and every such
remedy shall be cumulative and shall be in addition to every other
remedy given under this chapter or now or hereafter existing at law
or in equity or by statute or otherwise.
While any of the revenue bonds remain outstanding the
powers, duties, or existence of the department and of every other
official or agency of the State of California shall not be diminished
or impaired in any manner that will adversely affect the interests
and rights of the holders of the revenue bonds.