Section 92493 Of Article 3. Revenue Bonds From California Education Code >> Division 9. >> Title 3. >> Part 57. >> Chapter 5. >> Article 3.
92493
. (a) (1) The University of California may pledge, along with
its other revenues, its annual General Fund support appropriation
less the amount of that appropriation that is required to fund
general obligation bond payments and the State Public Works Board
rental payments, to secure the payment of any of the university's
general revenue bonds or commercial paper associated with the general
revenue bond program and to secure payment for any availability
payments, lease payments, installment payments, and other similar or
related payments.
(2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.
(3) The university may fund debt service for capital expenditures
defined in subdivision (b), and make availability payments, lease
payments, installment payments, and other similar or related payments
for capital expenditures defined in subdivision (b), from its
General Fund support appropriation pursuant to Sections 92495 and
92495.5.
(4) The state hereby covenants with the holders of the university'
s obligations secured by the pledge of the university permitted by
this section that, so long as any of the obligations referred to in
this subdivision remain outstanding, the state will not impair or
restrict the ability of the university to pledge any support
appropriation or support appropriations that may be enacted for the
university. The university may include this covenant of the state in
the agreements or other documents underlying the university's
obligations to this effect.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Availability payments" are payments made by the university to
a contractor for providing an available facility.
(2) "Capital expenditures" means any of the following:
(A) The costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion of
infrastructure to serve academic programs.
(B) The debt service amount associated with refunding, defeasing,
or retiring State Public Works Board lease revenue bonds.
(C) The costs to design, construct, or equip energy conservation
projects.
(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.
(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future
increases in student tuition, additional employee layoffs, or
reductions in employee compensation at the University of California.