36447.15
. (a) (1) Notwithstanding Section 36447, this section
applies only to the Irvine Ranch Water District and the Santa
Margarita Water District.
(2) As used in this section, "district" means the Irvine Ranch
Water District and the Santa Margarita Water District.
(b) To provide credit enhancement, liquidity support, or both, in
connection with, or incidental to, the issuance or carrying by the
district of any general obligation bonds for improvement districts or
consolidated general obligation bonds for improvement districts, the
district may pledge and apply all or any part of the revenues of the
district to the payment or security of any or all of the principal,
redemption price, and purchase price of those bonds, and the interest
thereon, in the manner and upon terms that the board may deem
advisable.
(c) In connection with the pledge, the board may provide in the
resolution, order, indenture, trust agreement, loan agreement, lease,
installment sale agreement, pledge agreement, or other document in
which the pledge is provided for or created, any covenants, promises,
restrictions, and provisions that the district may deem necessary or
desirable, including, but not limited to, covenants, promises,
restrictions, and provisions relating to the use of bond proceeds,
the maintenance, operation, and preservation of the district's
facilities, any rates and charges to be established and collected by
the district, including rates and charges for the services or
products furnished or provided by the district's facilities, the
incurring of additional indebtedness payable from the revenues, and
the establishment, maintenance, and use of reserve funds, sinking
funds, interest and redemption funds, maintenance and operation
funds, and other special funds for the payment or security of any or
all of the principal, redemption price, and purchase price of bonds
and the interest thereon.
(d) For the purposes of carrying out this section, the board may
exercise, but shall not be limited to exercising, the powers
specified in the Revenue Bond Law of 1941 (Chapter 6 (commencing with
Section 54300) of Part 1 of Division 2 of Title 5 of the Government
Code).
(e) Chapter 5.5 (commencing with Section 5450) of Division 6 of
Title 1 of the Government Code shall govern the creation of pledges
authorized by this section.
(f) Prior to exercising the authority granted pursuant to this
section, the board shall adopt criteria to govern its determinations
to use pledges pursuant to this section. The criteria may include,
but are not limited to, evaluating the use of a pledge in lieu of or
in combination with other credit enhancement and liquidity options
available to the board.
(g) The authority granted by this section is in addition to, and
not in derogation of, any authority granted by other provisions of
law relating to the payment of the district's general obligation
bonds from the proceeds of assessments to be levied upon and
collected from lands of any improvement district or relating to the
levy and collection of the assessments. This section does not affect
any other law authorizing or providing for the issuance or carrying
of bonds by the district. This section shall be deemed to provide a
complete and supplemental method for exercising the powers authorized
by this section, and shall be deemed supplemental to the powers
conferred by other applicable laws.
(h) On or before January 1, 2014, each district shall submit a
report to the Treasurer, the Chief Clerk of the Assembly, and the
Secretary of the Senate describing the district's use, if any, of the
authority granted pursuant to this section. The report shall include
all of the following:
(1) A description of each pledge made pursuant to this section.
(2) A discussion of the amounts from pledged district revenues,
paid pursuant to a pledge, that are expended to offset any
insufficiency in amounts required for the payment of principal,
redemption price, interest, or purchase price.
(3) A discussion of any benefits or savings to the district
associated with the use of the pledge made pursuant to this section.