Section 25350.7 Of Article 1. General From California Government Code >> Division 2. >> Title 3. >> Part 2. >> Chapter 5. >> Article 1.
25350.7
. (a) Prior to entering into an agreement to finance the
lease or lease-purchase of property through the execution and
delivery or issuance, as the case may be, of certificates of
participation or lease revenue bonds, the board of supervisors of the
County of Orange may elect, by resolution, to guarantee payment
under that financing agreement in accordance with the following:
(1) If the county elects to participate under this section, it
shall provide notice to the Controller of that election, and the
notice shall include a schedule for the payments to be made by the
county under that financing agreement and identify a trustee
appointed by the county for the purpose of this section.
(2) In the event that, for any reason, the funds available to the
county will not be sufficient to make any payment under the financing
agreement at the time that payment is required, the county shall so
notify the trustee and deliver to the Controller a duly certified
copy of the resolution of its board of supervisors adopted pursuant
to Section 29530.5. The trustee shall immediately communicate that
information to the affected holders of certificates of participation
or bondholders and to the Controller.
(3) When the Controller receives notice from the trustee, and a
copy of the resolution from the county, as described in paragraph
(2), or, after having adopted the resolution specified in paragraph
(2), the county fails to make any payment under the financing
agreement at the time that payment is required, the Controller shall
make an apportionment to the trustee in the amount of that required
payment for the purpose of making that payment. The Controller shall
make that payment only from moneys to be transmitted to the county by
the State Board of Equalization under Section 7204 of the Revenue
and Taxation Code, that are derived from that portion of the sales
and use taxes imposed by the county in excess of 1 percent, pursuant
to Part 1.5 (commencing with Section 7200) of Division 2 of the
Revenue and Taxation Code, and that are permitted to be deposited in
the general fund of the county pursuant to Section 29530.5. The
Controller shall thereupon reduce, by the amount of the payment, the
subsequent amounts to which the county would be entitled under that
section.
(b) As an alternative to the procedure set forth in paragraphs (2)
and (3) of subdivision (a), the board of supervisors may, on or
after the date of adoption by the board of the resolution specified
in Section 29530.5, provide a transfer schedule in a notice to the
Controller of its election to participate under this section. The
transfer schedule shall set forth the amounts to be transferred to
the trustee and the date or dates for the transfers, and the
Controller shall, subject to the limitations in the second and third
sentences of paragraph (3) of subdivision (a), make apportionments to
the trustee in those amounts on the specified date or dates for the
purpose of making those transfers.
(c) In the event that, for any reason, the county is no longer
obligated, for any period, to make all or a portion of the payments
with respect to the lease or lease-purchase financed through the
execution and delivery or issuance, as the case may be, of
certificates of participation or lease revenue bonds, the trustee
shall so notify the affected holders of certificates of participation
or bondholders and the Controller. Upon receipt of the notification,
the Controller shall cease making the transfers. If, after the
giving of the notice, the obligation of the county to make payments
with respect to the lease or lease-purchase financed through the
execution and delivery or issuance of certificates of participation
or lease revenue bonds is restored, the trustee shall so notify the
affected holders of certificates of participation or bondholders and
the Controller. Upon receipt of the notification, the Controller
shall resume making the transfers.
(d) Any election made by the county pursuant to this section shall
be in addition to any other election made by the county pursuant to
any other applicable provision of law to guarantee the obligation of
the county to make payments with respect to the lease or
lease-purchase of property financed through the certificates of
participation or lease revenue bonds.