Section 33664 Of Article 5. Agency Bonds From California Health And Safety Code >> Division 24. >> Part 1. >> Chapter 6. >> Article 5.
33664
. (a) An agency may purchase its bonds as follows:
(1) At a price not more than the sum of their principal amount and
accrued interest plus (if the bonds purchased are callable at a
premium) an amount not to exceed the premium that would be applicable
if the bonds were purchased on the next following call date.
(2) At a higher price if a majority of the members of the agency
determine, based upon substantial evidence, that under then
prevailing conditions the purchase would be of financial advantage to
the agency. Prior to purchasing bonds pursuant to this paragraph,
the agency shall adopt a resolution designating paragraph (1), (2),
or (3) of subdivision (b) as the financial advantage accruing to the
agency from the bond purchase or specifying in detail any alternative
basis for the agency's finding of financial advantage. Unless the
legislative body has designated itself as the redevelopment agency,
the agency shall additionally obtain the approval of the legislative
body for repurchase of agency bonds under this subdivision and, if
applicable, under Section 33640.
A resolution of the legislative body approving repurchase of
agency bonds under this subdivision shall be operative only for the
period specified in the resolution of the legislative body, not to
exceed five years. However, the authorization may be renewed by an
appropriate resolution of the legislative body and the expiration of
the legislative body's resolution shall in no way impair the
obligation of bonds previously issued by the agency to refund bonds
purchased under this subdivision.
(b) "Financial advantage," as used in subdivision (a), includes,
but is not limited to, each of the following:
(1) A reduction in the aggregate debt service on the agency's
outstanding bonds.
(2) The creation of opportunities to more efficiently leverage
revenues of the agency.
(3) Cancellation of agency bonds subject to adverse provisions of,
or tax consequences under, the laws of the United States.
(c) Any bond purchases made pursuant to this section shall be (1)
identified in the agency's annual fiscal year report required by
Section 33080.1 for the fiscal year in which the purchase was made
and (2) reflected in the agency's statement of indebtedness filed
pursuant to Section 33675.
(d) Within two weeks following a purchase of bonds pursuant to
paragraph (2) of subdivision (a), the redevelopment agency shall
transmit to the California Debt Advisory Commission a copy of the
agency's resolution specifying the financial advantage to the agency
in making the purchase, together with a covering letter that includes
all of the following information respecting the bonds purchased:
(1) The date of the agency's resolution authorizing the bonds, the
date of issuance of the bonds, and any other information necessary
to identify the particular issuance or series of bonds.
(2) The terms of redemption to which the bonds were originally
subject.
(3) The denominations and interest rates of the bonds purchased.
(4) The purchase price.
(e) All bonds purchased pursuant to this section shall be
canceled.