Section 31603 Of Article 5. Financial Provisions From California Government Code >> Division 4. >> Title 3. >> Part 3. >> Chapter 3. >> Article 5.
31603
. The board of retirement or the board of investments, as
applicable, may obtain a loan and pledge a portion of the assets of
the retirement fund as security for the repayment of the loan if the
board finds all of the following:
(a) An emergency exists affecting the national banking system or
financial markets.
(b) The emergency prevents the association from readily accessing
its funds.
(c) The loan is necessary to promptly deliver benefits when due.
The assets of the retirement fund pledged as security for the loan
shall be subject to execution and other processes of the court only
in connection with a proceeding to enforce the loan. The costs
associated with securing and repaying the loan, including interest,
shall be a charge against investment earnings of the fund.