Article 8. Miscellaneous of California Military And Veterans Code >> Division 2. >> Part 1. >> Chapter 10. >> Article 8.
All revenue bonds and the income therefrom are at all times
exempt from taxation in the State of California, except for transfer,
inheritance, and gift taxes.
All revenue bonds shall be legal investments for all trust
funds, for the funds of all insurance companies, banks (both
commercial and savings), trust companies, state school funds, and any
pension funds, public or private.
Any money or funds which may by law be invested in bonds of
the State of California may be invested in revenue bonds authorized
under Section 481.
Whenever any bonds of the State of California may by law be
used as security for the performance of any act or the deposit of any
public money, revenue bonds authorized under Section 481 may be so
All revenue bonds, subject to the provisions for
registration contained therein, are negotiable instruments.
The department may include in the proceedings authorizing
the issuance of revenue bonds any provisions not inconsistent with
this chapter which limit, restrict, or regulate the holding, deposit,
investment, and application of money consisting of the proceeds from
the sale of the revenue bonds or the revenues or other income
received from the pledged contracts entered into by the department
with California National Guard members, and such provisions shall
constitute a contract with the holders of the revenue bonds and shall
be binding upon the department and all other officers, officials,
and agencies of the State of California and upon the state so long as
any of the revenue bonds are outstanding.
The department may provide in the proceedings authorizing
issuance of revenue bonds for the establishment of one or more
reserve funds or accounts out of the proceeds of the sale of the
revenue bonds or out of revenues or out of any moneys or securities
available to the department under this chapter, and may provide for
the use and application of any surplus moneys in any such reserve
fund or account.
The National Guard Members' Finance Committee may authorize
the sale by the State Treasurer of any of the revenue bonds
authorized under this chapter to the United States of America or to
any of its departments, agencies, or instrumentalities upon such
terms and conditions as may be mutually agreed upon, and the
department is specifically authorized to enter into any such
agreements, terms, and conditions required by the United States of
America or any of its departments, agencies, or instrumentalities as
a condition to the purchase of such revenue bonds.
Warrants for the payments to be made on account of the
revenue bonds either as to principal, interest, premium, or otherwise
shall be duly drawn by the State Controller, upon the request of the
State Treasurer, whenever the drawing of such warrants is required
in order to make such payments.
Notwithstanding anything contained in this chapter, the
proceeds received from the sale of revenue bonds and any revenues
received by the department from pledged contracts entered into by the
department may be used to defray any expenses incurred by the
department or the State Treasurer in connection with, and incidental
to, the issuance and sale of revenue bonds, including expenses for
preparation, inspections and examinations, surveys, and reports which
may be required by the purchasers of, and any legal opinions deemed
necessary or advisable by the department in connection with the
issuance of revenue bonds, except that the proceedings authorizing
the issuance of such revenue bonds may contain appropriate provisions
governing the use and application of the proceeds from the sale of
the revenue bonds or other revenues received by the department for
the purposes above specified.
If any article, section, subdivision, sentence, clause, or
phrase of this chapter is for any reason held to be unconstitutional
or invalid or unenforceable, such decision shall not affect the
validity or enforceability of the remaining portions of the chapter.
The Legislature hereby declares that it would have passed this
chapter and each article, section, subdivision, sentence, clause, and
phrase hereof irrespective of the fact that any one or more
articles, sections, subdivisions, sentences, clauses, and phrases may
be declared unconstitutional, invalid, or unenforceable.
All money in any of the funds or accounts created or
authorized to be created in any resolution of issuance under the
provisions of this chapter is hereby appropriated for expenditure in
carrying out the purposes herein and therein provided.
For the purposes of meeting the necessary expenses of
initial organization and operation until such date as the department
derives revenues or proceeds from bonds or notes as provided under
this chapter, the department may, with the approval of the Department
of Finance, borrow money as needed from the General Fund in the
State Treasury. Such borrowed moneys shall be repaid with interest
from the first proceeds from the sale of bonds or notes as provided
under this chapter.
The department may impose such limitations, restrictions,
and conditions upon or in connection with the benefits conferred
pursuant to the California National Guard Members' Farm and Home
Purchase Act of 1978 (Article 4 (commencing with Section 270) of
Chapter 3 of Part 1 of Division 2), purchase contracts entered into
pursuant to that act and this chapter, and revenue bonds issued
pursuant to this chapter as may be necessary in the judgment of the
department in order to better assure or preserve the exemption of
interest on the bonds from federal income taxation, notwithstanding
anything to the contrary contained in that act or this chapter.