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Section 51368 Of Chapter 7. Revenue Bonds From California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 7.
51368
. (a) The Supplementary Bond Security Account is hereby
created in the California Housing Finance Fund. Moneys in the account
may be transferred into separate, individual accounts in the fund
which shall be known as supplementary reserve accounts, but the
amounts appropriated to the Supplementary Bond Security Account shall
be utilized to secure issuances of bonds as deemed necessary by the
agency and may also be used as provided in subdivision (d). Upon
issuance of any bonds, the agency may create a supplementary reserve
account to secure payment of the principal of, interest,
redemption-premium, and sinking fund payments on those bonds.
(b) When all obligations secured by all supplementary reserve accounts are retired the Supplementary Bond Security Account shall be dissolved and all moneys therein shall be used first for repayment to the General Fund in the State Treasury of amounts advanced to the Supplementary Bond Security Account from the General Fund, less any amount previously repaid on account of the advances. Remaining funds shall be paid into the general accounts of the housing finance agency unless otherwise obligated.
(c) When the amount in a bond reserve fund falls below the minimum bond reserve fund requirement for that fund and available revenues of the agency pledged to the prescribed minimum bond reserve fund requirement are insufficient to restore the fund, the agency shall transfer to the bond reserve fund, from the supplementary bond reserve account securing the bonds, the amount necessary to restore the fund to the minimum bond reserve fund requirement. Moneys in supplementary reserve accounts may be used to directly pay the interest, principal and sinking fund payments on the bonds as provided by bond resolution.
(d) Supplementary reserve accounts may also be used to insure mortgages to protect the value of the housing developments, residential structures, or other housing financed under this division that serves as real property security, in any manner permitted by the agency.
(e) "Bonds" as used in this section, includes taxable securities issued pursuant to Chapter 8 (commencing with Section 51400).
(b) When all obligations secured by all supplementary reserve accounts are retired the Supplementary Bond Security Account shall be dissolved and all moneys therein shall be used first for repayment to the General Fund in the State Treasury of amounts advanced to the Supplementary Bond Security Account from the General Fund, less any amount previously repaid on account of the advances. Remaining funds shall be paid into the general accounts of the housing finance agency unless otherwise obligated.
(c) When the amount in a bond reserve fund falls below the minimum bond reserve fund requirement for that fund and available revenues of the agency pledged to the prescribed minimum bond reserve fund requirement are insufficient to restore the fund, the agency shall transfer to the bond reserve fund, from the supplementary bond reserve account securing the bonds, the amount necessary to restore the fund to the minimum bond reserve fund requirement. Moneys in supplementary reserve accounts may be used to directly pay the interest, principal and sinking fund payments on the bonds as provided by bond resolution.
(d) Supplementary reserve accounts may also be used to insure mortgages to protect the value of the housing developments, residential structures, or other housing financed under this division that serves as real property security, in any manner permitted by the agency.
(e) "Bonds" as used in this section, includes taxable securities issued pursuant to Chapter 8 (commencing with Section 51400).
