Title 3 — BONDS SEC. 43.15.15. ISSUANCE OF BONDS; LOANS TO QUALIFIED 501(c)(3) SPONSORS.

The City may, from time to time, issue bonds approved by ordinance by the Board of Supervisors for any of the purposes of this Article XV, including, but not limited to, the financing or refinancing of Residences to be owned by the City, or the making of loans to Qualified 501(c)(3) Sponsors to finance or refinance Residences owned by such Sponsors, and any other purpose reasonably related thereto and necessary or convenient to carry out the purposes of this Article.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

(a) Every issue of bonds shall be a limited obligation of the City payable from all or any specified part of the Revenues and the moneys and assets authorized in this Article XV to be pledged or assigned to secure payment of bonds. Such Revenues, moneys, or assets shall be the sole source of repayment of such issue of bonds and shall constitute a special fund for purposes of Section 18 of Article XVI of the California Constitution. Bonds issued under the provisions of this Article XV shall not be deemed to constitute a debt or liability of the City or a pledge of the faith and credit of the

City but shall be payable solely from specified Revenues, moneys, and assets. The issuance of bonds shall not directly, indirectly, or contingently obligate the City to levy or pledge any form of taxation or to make any appropriation for their payment.

(b) All bonds shall contain on their face a statement to the following effect: Neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of or premium or interest on this bond.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

In determining the amount of bonds to be issued, the City may include all costs of the issuance of such bonds, reserve funds, and capitalized bond interest.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

(a) Notwithstanding any other ordinance, the Board of Supervisors by ordinance may take any and all actions necessary to authorize, issue, and repay the bonds, including, but not limited to, modifying schedules of rents, loan payments, rates, and charges to provide for the payment and retirement of such bonds.

(b) Bonds may be issued as serial bonds, term bonds, finance leases, installment payment obligations, loans, notes, certificates of participation, or pass-through certificates, or any combination thereof. Bonds shall be authorized by ordinance by the Board of Supervisors and shall bear such date or dates; mature at such time or times; bear interest at such fixed or variable rate or rates; be payable at such time or times; be in such denominations; be in such form, either coupon or registered; carry such registration privileges; be executed in such manner; be payable in lawful money of the United States of America at such place or places; and be subject to such terms of redemption and have such other terms and conditions as such ordinance, or any indenture authorized by such ordinance to be entered into by the City, may provide. Bonds may be sold at either public or private sale and for such prices as the City shall determine. Interest on bonds may be excluded or included from gross income of the owners thereof for federal income tax

purposes.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

Any ordinance authorizing any bonds or any issue of bonds, or any indenture authorized by such ordinance to be entered into by the City, may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of such bonds:

(a) The terms, conditions, and form of such bonds and the interest and principal to be paid thereon;

(b) Limitations on the uses and purposes to which the proceeds of sale of such bonds may be applied, and the pledge or assignment of such proceeds to secure the payment of such bonds;

(c) Limitations on the issuance of additional parity bonds, the terms upon which additional parity bonds may be issued and secured, and the refunding of outstanding bonds;

(d) The setting aside of reserves, sinking funds, and other funds and the regulation and disposition thereof;

(e) The pledge or assignment of all or any part of the Revenues and of any other moneys or assets legally available therefor and the use and disposition of such Revenues, moneys, and assets;

(f) Limitation on the use of Revenues for operations, administration, or other expenses of the City;

(g) Investment of Revenues and the proceeds of bonds;

(h) Specification of the acts or omissions to act which shall constitute a default in the duties of the City to holders of such bonds, and providing the rights and remedies of such holders in the event of default, including any limitations on the right of action by individual bondholders;

(i) The appointment of a corporate trustee to act on behalf of the City and the holders of its bonds, the pledge or assignment of loans, deeds of trust, mortgages, leases, subleases, sale contracts, and any other contracts to such trustee, and the rights of such trustee;

(j) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of such bonds the holders of which must consent thereto, and the manner in which such consent may be given; and

(k) Any other provisions which the Board of Supervisors by ordinance may deem reasonable and proper for the purposes of this Article XV and the security of the bondholders.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

Any pledge of Revenues or other moneys or assets pursuant to this Article XV shall be valid and binding from the time such pledge is made. Revenues, moneys, and assets so pledged and thereafter received by the City shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the City, irrespective of whether such parties have notice thereof. Neither the ordinance, nor any indenture by which a pledge is created need be filed or recorded except in the records of the Clerk of the Board of Supervisors.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

Neither the members of the Board of Supervisors, the officers or employees of the City, nor any person executing any bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

The City shall have the power out of any funds available therefor to purchase its bonds. The City may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with the bondholders.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

The City may issue bonds under this Article XV for the purpose of refunding any bonds then outstanding.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

The validity of the authorization and issuance of any bonds is not dependent on and shall not be affected in any way by any proceedings taken by the City for the approval of any financing or the entering into of any agreement, or by the failure to provide financing or enter into any agreement, for which bonds are authorized to be issued under this Article XV.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)