Section 94150 Of Article 4. Powers And Duties; Notes And Bonds From California Education Code >> Division 10. >> Title 3. >> Part 59. >> Chapter 2. >> Article 4.
94150
. (a) The authority may issue bonds of the authority for the
purpose of refunding any bonds or notes of the authority then
outstanding, including the payment of any redemption premium thereon
and any interest accrued or to accrue to the earliest date of
redemption or subsequent date of redemption, purchase or maturity of
the bonds, to be refunded and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project or any portion of a project.
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds may, in the discretion of the authority, be applied
to the purchase, retirement at maturity, or redemption prior to
maturity of any outstanding bonds either on their earliest redemption
date or dates, any subsequent redemption date or dates, upon their
purchase or maturity, or paid to a third person to assume the
authority's obligation to make the payments, and may, pending that
application, be placed in escrow to be applied to the purchase,
retirement at maturity, or redemption on the date or dates determined
by the authority.
(c) Any proceeds placed in escrow may, pending their use, be
invested and reinvested in obligations or securities authorized by
resolutions of the authority, payable or maturing at the time or
times as are appropriate to assure the prompt payment of the
principal, interest, and redemption premium, if any, of the
outstanding bonds to be refunded at maturity or redemption of the
bonds to be refunded either at their earliest redemption date or
dates or any subsequent redemption date or dates. The interest,
income and profits, if any, earned or realized on any such investment
may also be applied to the payment of the outstanding bonds to be
refunded or to the payment of interest on the refunding bonds. After
the terms of the escrow have been fully satisfied and carried out,
any balance of the proceeds and interest, income and profits, if any,
earned or realized on the investments thereof may be returned to the
authority for use by the authority.
(d) The portion of the proceeds of any bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of a project may be invested and reinvested in
obligations or securities authorized by resolution of the authority,
maturing not later than the time or times when the proceeds will be
needed for the purpose of paying all or any part of the cost. The
interest, income, and profits, if any, earned or realized on the
investment may be applied to the payment of all or any part of the
cost or may be used by the authority in any lawful manner.
(e) All of those refunding bonds are subject to this chapter in
the same manner and to the same extent as other bonds issued pursuant
to this chapter.