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Section 25350.8 Of Article 1. General From California Government Code >> Division 2. >> Title 3. >> Part 2. >> Chapter 5. >> Article 1.
25350.8
. (a) Taxes collected by the State Board of Equalization
pursuant to Section 7204 of the Revenue and Taxation Code, that are
derived from that portion of the taxes imposed by the County of
Orange in excess of 1 percent, and for the period beginning on and
after July 1, 2004, and ending when the rate modifications in
subdivision (a) of Section 7203.1 of the Revenue and Taxation Code
cease to apply, that are derived from that portion of the taxes
imposed by that county in excess of one-half 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 to
the general fund of the county pursuant to paragraph (1) of
subdivision (a) of Section 29530.5 shall be pledged, without the
necessity for specific authorization of the pledge by the board of
supervisors, to all certificates of participation or lease revenue
bonds executed and delivered or issued, as the case may be, during
the years 1996 and 1997, including obligations executed and delivered
or issued before 2010, to refund those certificates of participation
or lease revenue bonds, to finance or refinance the lease or
lease-purchase of property of the county and having a stated maturity
of 20 years or more. Any refunding obligations may not have a final
maturity later than the final maturity of the refunded obligations.
The amount so pledged with respect to any fiscal year of the county
may not exceed the amounts to be paid in that fiscal year on those
certificates or lease revenue bonds.
(b) The pledge of taxes pursuant to this section shall constitute a contract between the County of Orange and the owners of any of the certificates of participation or lease revenue bonds and shall be protected from impairment by the United States and California Constitutions. The state hereby covenants with the owners of any certificates of participation or lease revenue bonds entitled to the pledge granted by this section that, as long as any of the certificates of participation or lease revenue bonds entitled to the pledge granted by this section shall remain outstanding, (1) the provisions of Section 7202 that authorize the imposition of the taxes may not be repealed and (2) the provisions of paragraph (1) of subdivision (a) of Section 29530.5 may not be repealed prior to July 1, 2011, nor may either section be altered or amended in any manner that would adversely affect the security of, or the ability of the county to pay, the principal of and interest on the certificates of participation or lease revenue bonds entitled to the pledge granted by this section. However, nothing precludes any alteration or amendment if and when adequate provision has been made by law for the protection from impairment of the contract represented by the certificates of participation or lease revenue bonds, and the right to so alter or amend is hereby reserved. The county may include this covenant of the state in the agreements or other documents underlying the certificates of participation or lease revenue bonds.
(b) The pledge of taxes pursuant to this section shall constitute a contract between the County of Orange and the owners of any of the certificates of participation or lease revenue bonds and shall be protected from impairment by the United States and California Constitutions. The state hereby covenants with the owners of any certificates of participation or lease revenue bonds entitled to the pledge granted by this section that, as long as any of the certificates of participation or lease revenue bonds entitled to the pledge granted by this section shall remain outstanding, (1) the provisions of Section 7202 that authorize the imposition of the taxes may not be repealed and (2) the provisions of paragraph (1) of subdivision (a) of Section 29530.5 may not be repealed prior to July 1, 2011, nor may either section be altered or amended in any manner that would adversely affect the security of, or the ability of the county to pay, the principal of and interest on the certificates of participation or lease revenue bonds entitled to the pledge granted by this section. However, nothing precludes any alteration or amendment if and when adequate provision has been made by law for the protection from impairment of the contract represented by the certificates of participation or lease revenue bonds, and the right to so alter or amend is hereby reserved. The county may include this covenant of the state in the agreements or other documents underlying the certificates of participation or lease revenue bonds.
