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PRC Sec 32000-32208 CALIFORNIA URBAN WATERFRONT AREA RESTORATION FINANCING AUTHORITY ACT
PUBLIC RESOURCES CODE
32000. This division shall be known and may be cited as the
California Urban Waterfront Area Restoration Financing Authority Act.
32001. The Legislature finds and declares that it is essential that
the state, in cooperation with local governments, use all practical
means and measures to restore, revitalize, and develop, in an
economically and environmentally sound manner, the coastal and inland
urban waterfront areas of the state.
The Legislature further finds that existing conditions in some of
the state's coastal urban waterfront areas prevent the attainment of
one or more of the basic goals of the state set forth in Section
30001.5 for the coastal zone, and that existing sources of funding
are not adequate to restore these areas in accordance with those
The Legislature further finds that properly planned development of
coastal and inland urban waterfronts with public recreation
facilities, shoreline access facilities, visitor-serving commercial
facilities, or coastal-dependent facilities, or with public works
necessary for the implementation or preservation of an urban
waterfront project, will promote attainment of the basic goals of the
state for the coastal zone and will stimulate economic development
and promote employment in coastal and inland urban waterfront areas.
32002. As to urban waterfront areas in the coastal zone, the
purpose of this division is to carry out and make effective Chapter 7
(commencing with Section 31300) of Division 21 and, to that end,
provide an economically feasible method of financing urban waterfront
32003. This division is necessary for the welfare of the state and
its inhabitants and shall be liberally construed to implement its
32020. Unless the context otherwise requires, the definitions in
this article govern the interpretation of this division.
32021. "Authority" means the California Urban Waterfront Area
Restoration Financing Authority established pursuant to Section
32050, and any board, commission, department, or officer succeeding
to the functions thereof or to whom the powers conferred upon the
authority by this division shall be given.
32022. "Bonds" means bonds, notes, bond anticipation notes,
commercial paper, and any other evidences of indebtedness.
32023. "Coastal zone" means that area of the state defined in
subdivision (a) of Section 31006, except that it includes lands in
Contra Costa County from the Richmond-San Rafael Bridge north and
east to the termination of the jurisdiction of the San Francisco Bay
Conservation and Development Commission, as described in Section
66610 of the Government Code, as well as any adjacent uplands,
managed wetlands, marshes, and diked lands that significantly affect
the environmental quality of the bay, or that are directly related to
the public use and enjoyment of the San Francisco Bay.
32024. "Conservancy" means the State Coastal Conservancy
established pursuant to Section 31100.
32025. "Cost," as applied to a project, or portion thereof,
financed under this division, means all, or any part of, the costs of
construction and acquisition of all lands, structures, real or
personal property, rights, rights-of-way, franchises, easements, and
interests acquired or used for a project, the cost of demolition or
removal of any buildings or structures on land so acquired, including
the cost of acquiring any lands on which buildings or structures may
be removed, the cost of all machinery and equipment, financing
charges, interest prior to, during, and for a period after completion
of the construction, as determined by the authority, provisions for
working capital, reserves for principal and interest, and for
extensions, enlargements, additions, replacements, renovations, and
improvements, the cost of architectural, engineering, financial, and
legal services, plans, specifications, estimates, administrative
expenses, and other expenses necessary or incident to determining the
feasibility of constructing any project, or incident to the
construction or acquisition or financing of any project.
32025.5. "Metropolitan statistical area" means any area so defined
by the federal Office of Management and Budget.
32026. "Participating party" means any public or private entity,
profit or nonprofit, including, but not limited to, any municipality,
county, district, joint powers agency, person, company, corporation,
partnership, firm, trust, or foundation, engaged in a project within
the State of California, which obtains financing pursuant to the
terms of this division.
32027. "Project" means an urban waterfront restoration activity
located wholly or partly within the coastal zone for which a plan of
urban waterfront restoration has been approved pursuant to Section
32059 and an urban waterfront restoration activity located within the
territory of the Sacramento-Yolo Port District, the Stockton Port
District, or on a river, lake, or reservoir located within a
metropolitan statistical area for which a plan of urban waterfront
restoration has been approved pursuant to Section 32059.5. Project
includes, but is not limited to, lands, buildings, or roads, and
improvements thereto, work, rehabilitation, structure, or property,
real or personal, located wholly or partly within the coastal zone
or within the territory of the Sacramento-Yolo Port District, the
Stockton Port District, or on a river, lake, or reservoir located
within a metropolitan statistical area, providing or designed to
provide visitor serving commercial facilities, transient visitor
accommodations, coastal or inland waterfront dependent industry,
public utility systems, mass transit facilities, and public
recreation and shoreline access facilities, including, but not
limited to, parks, stairways, piers, and wharves, boat berthing
facilities, parking facilities, visitor service centers, or
interpretive centers, shoreline protection and erosion control
facilities, and administrative facilities necessary for the operation
of coastal dependent activities. Project does not include new
permanent residential structures, office structures for nonmaritime
purposes on lands subject to the public trust for commerce,
navigation, and fisheries, noncoastal dependent industrial
facilities, or other noncoastal related uses, or industrial
facilities or other uses that are unrelated to an inland waterfront.
A project may include office structures on lands not subject to the
public trust for commerce, navigation, and fisheries, or office
structures for maritime purposes on lands subject to the public trust
for commerce, navigation, and fisheries, if the State Coastal
Conservancy finds that the project physically includes all of the
elements specified in paragraph (2) of subdivision (b) of Section
32028. "Revenue" means all rents, receipts, purchase payments, loan
repayments, proceeds of bonds, and all other income or receipts
derived by the authority from the sale, lease, or other disposition
of projects, or the making of loans to finance projects, and any
income derived from the investment of any money in any fund or
account of the authority.
32050. (a) There is in state government the California Urban
Waterfront Area Restoration Financing Authority. The authority
constitutes a public instrumentality and a political subdivision of
the State of California, and the exercise by the authority of powers
conferred by this division is the performance of an essential public
(b) The authority shall consist of five members, the Director of
Finance, the Controller, the Treasurer, the Secretary of the
Resources Agency, and the executive director of the conservancy. The
Treasurer shall serve as chairman of the authority.
(c) Each of the members of the authority may select a designee
from the member's agency to act for the member and represent the
member at all meetings of the authority.
(d) The first meeting of the authority shall be convened by the
32051. All members shall serve thereon without compensation as
members of the authority.
32052. This division shall be administered by the authority which
shall have, and is hereby vested with, all powers reasonably
necessary to carry out its powers and responsibilities.
32053. The authority shall maintain an office in the City of
32054. The chairman shall appoint an executive director who shall
not be a member of the authority and who shall serve at the pleasure
of the authority and shall employ the staff of the conservancy and
other necessary persons to enable the authority to properly perform
the duties imposed upon it by this division. The executive director
shall receive compensation as fixed by the authority. The authority
may delegate to the executive director the power to enter contracts
on behalf of the authority.
32055. The authority may, in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, adopt the necessary rules and regulations to
carry out this division.
32056. (a) The Attorney General shall be the legal counsel for the
authority, but, upon approval of the Attorney General, which approval
shall not be unreasonably withheld, the authority may employ legal
counsel as, in its judgment, is necessary or advisable to enable it
to carry out the duties and functions imposed on it by this division,
including employment of bond counsel as deemed advisable in
connection with the issuance and sale of bonds.
(b) The Director of Finance shall be the treasurer of the
32057. Subject to the conditions, restrictions, and limitations of
Section 32059, the authority shall have the power to do all the
(a) Adopt bylaws for the regulation of its affairs and the conduct
of its business.
(b) Adopt an official seal.
(c) Sue and be sued in its own name.
(d) Issue bonds, including, at the option of the authority, bonds
bearing interest that is taxable for the purpose of federal income
taxation, to pay the cost of any project.
(e) Engage the services of private consultants to render
professional and technical assistance and advice in carrying out the
purposes of this division.
(f) Employ and fix compensation of bond counsel, project
expediters, financial consultants, and other advisors as may be
necessary, in its judgment, in connection with the issuance and sale
of any bonds or other obligations of the authority.
(g) Contract for engineering, architectural, accounting, or other
services of appropriate state agencies as may be necessary, in its
judgment, for the successful development of the project.
(h) Pay the reasonable costs of consulting engineers, architects,
accountants, and construction, land use, recreation, and
environmental experts employed by any participating party if, in its
judgment, those services are necessary for the successful development
of the project.
(i) Take title to, and sell by installment sale or otherwise,
lands, structures, property, real or personal, rights, rights-of-way,
franchises, easements, and other interests in lands which are
located within the state as it may deem necessary or convenient for
the financing of a project, upon terms and conditions as considered
by it to be reasonable.
(j) Receive and accept from any source, loans, contributions, or
grants for, or in aid of, the construction, financing, or refinancing
of a project, or any portion thereof, in either money, property,
labor, or other things of value.
(k) Make secured or unsecured loans to any participating party in
connection with the financing of a project in accordance with an
agreement between the authority and the participating party, except
that no loan shall exceed the total cost of the project as determined
by the participating party and approved by the authority.
(l) Make secured or unsecured loans to any participating party in
accordance with an agreement between the authority and the
participating party to refinance indebtedness incurred by the
participating party in connection with projects undertaken and
(m) Mortgage all or any portion of its interest in a project and
the property on which any project is located, whether owned or
thereafter acquired, including the granting of a security interest in
any property, tangible or intangible, and to assign or pledge all or
any portion of its interests in mortgages, deeds of trust,
indentures of mortgage or trust or similar instruments, notes, and
security interests in property, tangible or intangible, of
participating parties to which the authority has made loans, and the
revenues therefrom, including payment or income from any interest
owned or held by the authority, for the benefit of the holders of
bonds issued to finance the project.
(n) Lease to a participating party the project being financed,
upon terms and conditions that the authority deems proper, and to
charge and collect rents therefor, and to terminate any lease upon
the failure of the lessee to comply with any of the obligations
thereof, and to include in any lease, if desired, provisions that the
lessee shall have options to renew the lease for a period or
periods, and at rents as determined by the authority, to purchase any
or all of the project, or that, upon payment of all of the
indebtedness incurred by the authority for the financing of the
project, the authority may convey any or all of the project to the
lessee or lessees.
(o) Charge and equitably apportion among participating parties its
administrative costs and expenses incurred in the exercise of the
powers and duties conferred by this division.
(p) Obtain, or aid in obtaining, from any department or agency of
the United States or of the State of California, or any private
company, any insurance or guarantee as to, or for, the payment or
repayment of interest or principal, or both, or any part thereof, on
any loan, lease, or obligation or any instrument evidencing or
securing the same, made or entered into pursuant to this division;
and, notwithstanding any other provision of this division, to enter
into any agreement, contract, or any other instrument with respect to
any insurance or guarantee, to accept payment in the manner and form
as provided therein in the event of default by a participating
party, and to assign any insurance or guarantee as security for the
(q) Enter into any and all agreements or contracts, execute any
and all instruments, and do and perform any and all acts or things
necessary, convenient, or desirable for the purposes of the authority
or to carry out any power expressly given in this division.
(r) Invest any moneys held in reserve or sinking funds, or any
moneys not required for immediate use or disbursement, at the
discretion of the authority, in obligations that are authorized by
law for the investment of trust funds in the custody of the
32058. The authority shall establish criteria for the selection of
projects to receive financial assistance from the authority. The
project selection criteria shall be based upon the economic soundness
of the project itself and a reasonable expectation that all
financial obligations of the project can be met by participating
32059. (a) No project located wholly or partially within the
coastal zone shall be eligible for approval unless it has been
approved by the conservancy and is located in a part of the coastal
zone for which a plan for urban waterfront restoration has been
approved by the conservancy pursuant to Chapter 7 (commencing with
Section 31300) of Division 21.
(b) The conservancy shall approve a plan for the purposes of
utilizing the financing provisions of this division only if it finds
both of the following:
(1) Existing conditions prevent the attainment of one or more of
the basic goals of the state for the coastal zone, as identified in
(2) The proposed plan provides for public access or public
recreation benefits, environmental enhancement, and has a potential
for employment development and economic stimulation.
32059.5. (a) No project located within the territory of the
Sacramento-Yolo Port District, the Stockton Port District, or on a
river, lake, or reservoir within a metropolitan statistical area
shall be eligible for approval unless it has been approved by the
conservancy and a plan for urban waterfront restoration has been
approved by the conservancy.
(b) The conservancy shall approve a plan for the purposes of
utilizing the financing provisions of this division for projects
specified in subdivision (a) only if it finds that the proposed plan
provides for public access or public recreational benefits, provides
for environmental enhancement, and has a potential for employment
development and economic stimulation.
(c) Fifty million dollars ($50,000,000) shall be reserved for
projects on a river, lake, or reservoir in a metropolitan statistical
32060. (a) The California Urban Waterfront Area Restoration
Financing Authority Fund is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, all moneys in
the fund are continuously appropriated to the authority for carrying
out the purposes of this division.
The authority may pledge any or all of the moneys in the fund as
security for payment of the principal of, and interest on, any
particular issuance of bonds issued pursuant to this division, and,
for that purpose, or as necessary or convenient to the accomplishment
of any other purpose of the authority, may divide the fund into
separate accounts. All moneys accruing to the authority pursuant to
this division from any source shall be deposited in the fund.
(b) Subject to priorities that may be created by the pledge of
particular moneys in the fund to secure any issuance of bonds of the
authority, and subject further to reasonable costs that may be
incurred by the authority in administering the program authorized by
this division, all moneys in the fund derived from any source shall
be held in trust for the security and payment of bonds of the
authority and shall not be used or pledged for any other purpose so
long as the bonds are outstanding and unpaid. However, nothing in
this section shall limit the power of the authority to make loans
with the proceeds of bonds in accordance with the terms of the
resolution authorizing the bonds.
(c) Pursuant to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys, the
authority may create separate accounts in the fund to manage assets,
revenues, or moneys in the manner set forth in the agreements.
(d) The authority may, from time to time, direct the Treasurer to
invest moneys in the fund which are not required for its current
needs, including proceeds from the sale of any bonds, in such
eligible securities specified in Section 16430 of the Government Code
as the authority shall designate. The authority may direct the
Treasurer to deposit moneys in interest-bearing accounts in state or
national banks or other financial institutions having principal
offices in this state. The authority may alternatively require the
transfer of moneys in the fund to the Surplus Money Investment Fund
for investment pursuant to Article 4 (commencing with Section 16470)
of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government
Code. Notwithstanding Section 16305.7 of the Government Code, all
interest or other increment resulting from the investment or deposit
of moneys from the fund shall be deposited in the fund. Moneys in
the fund shall not be subject to transfer to any other funds pursuant
to any provision of Part 2 (commencing with Section 16300) of
Division 4 of Title 2 of the Government Code, except to the Surplus
Money Investment Fund.
32061. All expenses incurred in carrying out this division shall be
payable solely from funds provided under the authority of this
division, and no liability or obligation shall be imposed upon the
State of California and, except as provided in Section 32116, none
shall be incurred by the authority beyond the extent to which money
shall have been provided under this division. Under no circumstance
shall the authority create any debt, liability, or obligation on the
part of the State of California payable from any source other than
the moneys provided under this division.
32061.5. The activities of the conservancy in carrying out its
responsibilities under this division shall be deemed to be consistent
with and in furtherance of Chapter 7 (commencing with Section 31300)
of Division 21.
The conservancy may pay for its support costs associated with this
division from any funding source appropriated and available to it
which may be used to fund its support activities under that Chapter
7. However, the conservancy shall keep records of its support
expenditures associated with projects which may receive any or all of
their funding pursuant to this division and, if the authority
ultimately issues bonds for any such project, the conservancy shall
seek repayment of its support costs with respect to that project from
the authority. The authority shall reimburse the conservancy for
its necessary and reasonable support costs in developing projects
which are funded pursuant to this division.
Nothing in this section precludes the authority from reimbursing
the conservancy for additional costs associated with its
responsibilities under this division.
32062. All projects financed by the authority shall be constructed
or completed subject to the rules and regulations of the authority.
32063. When the principal of, and interest on, bonds of the
authority issued to finance the cost of a particular project for a
participating party, including any refunding bonds issued to refund
and refinance all or any part of the bonds, have been fully paid and
retired, or when adequate provisions have been made for the payment
and retirement of the bonds, and all other conditions of any
resolution, lease, indenture, mortgage or deed of trust, security
interest, or any other instrument or instruments authorizing and
securing the bonds have been satisfied, and any lien created has been
released in accordance with the provisions thereof, the authority is
authorized, upon terms and conditions it may prescribe, to do all
things and execute releases, release deeds, reassignments, deeds, and
conveyances necessary or required to convey or release its right,
title, and interest in the project financed and any other instruments
pledged or transferred to secure bonds to the participating party.
32064. (a) The authority, or its executive director if authorized
by resolution of the authority, shall take official action towards
the issuance of bonds with respect to any participating party at the
next meeting of the authority occurring more than 30 days following
the receipt of a completed application. Official action towards the
issuance of bonds may reserve the right of the authority to further
review an application for financing and consider terms thereof prior
to the issuance of bonds therefor.
(b) The authority shall take final action to approve or disapprove
the issuance of bonds to lend financial assistance to participating
parties within 60 days from the receipt by the authority of a request
from a participating party for action. Any request by a
participating party shall be accompanied by evidence of fulfillment
of any and all conditions to the issuance of the bonds imposed at the
time the first action towards the issuance was taken by the
authority and copies of forms of all principal legal documents to be
approved by the authority.
(c) The authority may give final approval for the issuance of the
bonds upon terms it deems necessary or desirable.
(d) Any action under this section shall be at the sole discretion
of the authority.
32065. The authority, not later than March 31 of each year, shall
submit to the Legislature a report of its activities for the
preceding calendar year ending December 31. The report shall
include a listing of applications received, a listing of applications
accepted for financing, a specification of bonds sold, interest
rates thereon, and whether bond sales were pursuant to public bid or
were negotiated, a specification of the amount of bonds authorized
but currently unsold, a projection of the authority's needs and
requirements for the coming year, and a report of revenues and
expenditures for the preceding fiscal year.
32066. The Treasurer is the elected representative of the state to
approve the issuance of bonds issued by or on behalf of the state
pursuant to this chapter to the extent this approval is required by
federal tax law.
32100. The total amount of bonds which may be outstanding at any
one time under this division shall not exceed six hundred fifty
million dollars ($650,000,000). Bonds for which moneys or securities
in amounts necessary to pay or redeem the principal, interest, and
any redemption premium thereon have been deposited in trust shall not
be deemed outstanding for purposes of this section.
32101. The Legislature may, by statute, authorize the authority to
issue bonds in excess of the amount specified in Section 32100.
32102. (a) The authority is authorized from time to time to issue
its negotiable bonds to provide funds to achieve its purposes.
(b) Bonds may be authorized to finance a single project for a
single participating party, a series of projects for a single
participating party, a single project for several participating
parties, or several projects for several participating parties.
32103. Except as otherwise expressly provided by the authority,
every issue of its bonds shall be general obligations of the
authority payable from any revenues or moneys of the authority
available therefor and not otherwise pledged, including the proceeds
of additional bonds, subject only to any agreements with the holders
of particular bonds, notes, or other obligations pledging any
particular revenues or moneys and subject to any agreements with
holders of particular bonds pledging any particular revenues.
Notwithstanding that the bonds may be payable from a special fund,
they shall be and deemed to be negotiable instruments for all
purposes, subject only to the bond registration provisions.
32104. Subject to the limitations in Sections 32100 and 32101, the
bonds may be issued as serial bonds or as term bonds, or the
authority may, in its discretion, issue bonds of both types. The
bonds shall be authorized by resolution of the authority and shall
bear the date or dates, mature at the time or times, not exceeding 50
years from their respective dates, bear interest at the rate or
rates, be payable at the time or times, be in the denominations, be
in the form, either coupon or registered, carry the registration
privileges, be executed in the manner, be payable in lawful money of
the United States of America at the place or places, and be subject
to the terms of redemption, as the resolution or resolutions provide.
32105. The bonds or notes shall be sold by the Treasurer within 60
days after receipt of a certified copy of the authority's resolution
authorizing the sale of the bonds, except that the authority may, at
its discretion, adopt a resolution extending the 60-day period. The
sale may be a public or private sale, and for such price or prices
and on such terms and conditions, as the authority determines, after
giving due consideration to the recommendations of any participating
party to be assisted from the proceeds of the bonds. Pending
preparation of the definitive bonds, the Treasurer may issue interim
receipts, certificates, or temporary bonds which shall be exchanged
for definitive bonds. The Treasurer may sell any bonds at a price
below the par value if the discount on any bonds sold does not exceed
6 percent of the par value.
32106. Any resolution or resolutions authorizing any bonds or any
issue of bonds may contain the following provisions, which shall be a
part of the contract with the holders of the bonds to be authorized:
(a) Pledging the full faith and credit of the authority, or
pledging all or any part of the revenues of any urban waterfront
restoration project or any revenue-producing contract or contracts
made by the authority with any individual, partnership, corporation,
or association or other body, public or private, or other moneys of
the authority, to secure the payment of the bonds or of any
particular issue of bonds, subject to those agreements with
bondholders as may then exist.
(b) The rentals, fees, purchase payments, loan repayments, and
other charges to be charged, and the amounts to be raised in each
year thereby, and the use and disposition of the revenues.
(c) The setting aside of reserves or sinking funds, and the
regulation and disposition thereof.
(d) Limitations on the right of the authority or its agent to
restrict and regulate the use of the project or projects to be
financed out of the proceeds of the bonds or any particular issue of
(e) Limitations on the purpose to which the proceeds of sale of
any issue of bonds then or thereafter to be issued may be applied,
and pledging the proceeds to secure the payment of the bonds or any
issue of the bonds.
(f) Limitations on the issuance of additional bonds, the terms
upon which additional bonds may be issued and secured and the
refunding of outstanding bonds.
(g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds and the
holders thereof that are required to give consent thereto, and the
manner in which the consent may be given.
(h) Limitations on expenditures for operating, administrative, or
other expenses of the authority.
(i) Defining the acts or omissions to act which constitute a
default in the duties of the authority to holders of its obligations,
and providing the rights and remedies of the holders in the event of
(j) The mortgaging of any project and the site thereof for the
purpose of securing the bondholders.
(k) The mortgaging of land, improvements, or other assets owned by
a participating party for the purpose of securing the bondholders.
(l) Procedures for the selection of projects to be financed with
the proceeds of the bonds authorized by the resolution, if the bonds
are to be sold in advance of the designation of the projects and the
participating parties to receive the financing.
32107. Neither the members of the authority nor any person
executing the bonds or notes shall be liable personally on the bonds
or notes or be subject to any personal liability or accountability by
reason of the issuance thereof.
32108. The authority may, out of any funds available therefor,
purchase its bonds or notes. The authority may hold, pledge, cancel,
or resell the bonds, subject to and in accordance with agreements
32109. In the discretion of the authority, any bonds issued under
this division may be secured by a trust agreement by and between the
authority and a corporate trustee or trustees, which may be the
Treasurer or any trust company or bank having the powers of a trust
company within or without the state.
32110. (a) The trust agreement or the resolution providing for the
issuance of the bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledge and may
convey or mortgage the project or projects, or any portion thereof,
to be financed out of the proceeds of the bonds. The trust agreement
or resolution providing for the issuance of the bonds may contain
the provisions for protecting and enforcing the rights and remedies
of the bondholders as may be reasonable and proper and not in
violation of law, including particularly provisions specifically
authorized to be included in any resolution or resolutions of the
authority authorizing bonds thereof.
(b) Any bank or trust company doing business under the laws of
this state which may act as depository of the proceeds of bonds or of
revenues or other moneys may furnish indemnifying bonds or pledge
securities as may be required by the authority.
(c) The trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. In addition, any trust
agreement or resolution may contain other provisions that the
authority may deem reasonable and proper for the security of the
32111. Notwithstanding any other provision of law, the Treasurer
shall not be deemed to have a conflict of interest by reason of
acting as trustee pursuant to this division.
32112. All expenses incurred in carrying out the provisions of this
trust agreement or resolution may be treated as a part of the cost
of the operation of a project.
32113. Bonds issued under this division do not constitute a debt or
liability of the state or of any political subdivision thereof,
other than the authority, or a pledge of the full faith and credit of
the state or any of its political subdivisions, other than the
authority, but are payable solely from the funds provided therefor
under this division. All the bonds shall contain on the face thereof
a statement to the following effect:
"Neither the full faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of or
interest on this bond."
The issuance of bonds under this division shall not directly or
indirectly or contingently obligate the state or any political
subdivision thereof to levy or to pledge any form of taxation
whatever therefor or to make any appropriation for their payment.
Nothing in this section shall prevent, or be construed to prevent,
the authority from pledging its full faith and credit to the payment
of bonds or issue of bonds authorized pursuant to this division.
32114. (a) The authority may provide for the issuance of bonds of
the authority for the purpose of refunding any bonds, notes, or other
securities of the authority then outstanding, including the payment
of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase, or
maturity of these bonds and, if deemed advisable by the authority,
for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of an urban waterfront restoration project or any
(b) The proceeds of any bonds issued for the purpose of refunding
outstanding bonds, notes, or other securities may, in the discretion
of the authority, be applied to the purchase or retirement at
maturity or redemption of these outstanding bonds either on their
earliest or any subsequent redemption date or upon the purchase or
retirement at the maturity thereof and may, pending the application,
be placed in escrow to be applied to the purchase or retirement at
maturity or redemption on the date as may be determined by the
(c) Pending this use, the escrowed proceeds may be invested and
reinvested by the Treasurer in obligations of, or guaranteed by, the
United States of America, or in certificates of deposit or time
deposits secured by obligations of, or guaranteed by, the United
States of America, maturing at time or times appropriate to assure
the prompt payment, as to principal, interest, and redemption
premium, if any, of the outstanding bonds to be so refunded. The
interest, income, and profits, if any, earned or realized on the
investment may also be applied to the payment of the outstanding
bonds to be so refunded. After the terms of the escrow have been
fully satisfied and carried out, any balance of the proceeds and
interest, income, and profits, if any earned or realized on the
investments thereof, shall be returned to the authority and the
conservancy for use in carrying out this division.
(d) The portion of the proceeds of the bonds issued for the
additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions, or
enlargements of an urban waterfront restoration project may be
invested and reinvested by the Treasurer in obligations of, or
guaranteed by, the United States of America, or in certificates of
deposit or time deposits secured by obligations of, or guaranteed by,
the United States of America, maturing not later than the time or
times when these proceeds will be needed for the purpose of paying
all or any part of the cost. The interest, income and profits, if
any earned or realized on this investment, may be applied to the
payment of all or any part of the cost or may be used by the
authority and the conservancy in carrying out this division.
(e) All these bonds are subject to this division in the same
manner and to the same extent as other bonds issued pursuant to the
provisions of this division.
32115. Bonds issued by the authority are legal investments for all
trust funds, the funds of all insurance companies, banks, both
commercial and savings, trust companies, savings and loan
associations, and investment companies, for executors,
administrators, trustees, and other fiduciaries, for state school
funds, and for any funds which may be invested in county, municipal,
or school district bonds, and these bonds are securities which may
properly and legally be deposited with, and received by, any state or
municipal officer or agency or political subdivision of the state
for any purpose for which the deposit of bonds or obligations of the
state, is now, or may hereafter be, authorized by law, including
deposits to secure public funds if, and only to the extent that,
evidence of indebtedness or debt securities of the participating
party receiving financing through the issuance of these bonds which
qualify or are eligible for these purposes and uses.
32116. No liability shall be incurred by the authority beyond the
extent to which moneys have been provided under this division, except
that, for the purposes of meeting the necessary expenses of initial
organization and operation until the date that the authority derives
revenues or proceeds from bonds or notes as provided under this
division, the authority may borrow money as needed for these expenses
from the General Fund in the State Treasury. The borrowed money
shall be repaid with interest within a reasonable time after the
authority receives revenues or proceeds from bonds or notes as
provided under this division.
32150. The authority is not required to pay any property taxes or
assessments upon, or with respect to, an urban waterfront restoration
project or any property acquired by or for the authority under this
division or upon the income therefrom, so long as the authority holds
title to the project or to the property or facilities comprised in
The exemption of the authority from taxation of any project ceases
when title to the property is transferred from the authority to any
normally taxable participating party. This section does not exempt
any normally taxable participating party from taxation, including,
but not limited to, taxation upon a possessory interest, with respect
to any project, or the property or facilities comprised in any
project, which may otherwise be applicable to the participating
32151. Subject to Section 32153, the existence of the authority may
be terminated by statute at any time by the Legislature. Upon
dissolution of the authority, the title to all properties owned by it
shall, subject to the interests of any participating parties
therein, vest in and become the property of the State of California
and shall not inure to the benefit of any private party.
32152. This division provides a complete, additional, and
alternative method for the doing of the things authorized thereby,
and shall be regarded as supplemental and additional to powers
conferred by other laws, except that the issuance of bonds and
refunding bonds under this division need not comply with the
requirements of any other law applicable to the issuance of bonds.
32153. The State of California does hereby pledge to, and agree
with, the holders of any obligations issued under this division, and
with those parties who may enter into contracts with the authority
pursuant to this division, that the state will not limit or alter the
rights hereby vested in the authority to finance any project and to
fulfill the terms of any loan agreement, lease, or other contract
with the authority pursuant to this division, or in any way impair
the rights or remedies of the bonds or the parties until those
obligations, together with the interest thereon, are fully met and
discharged and those contracts are fully performed on the part of the
authority. However, nothing in this section precludes this
limitation or alteration if and when adequate provision has been made
by law for the protection of the holders of those obligations of the
authority or those entering into those contracts with the authority.
The authority, as agent for the state, is authorized to include
this pledge and undertaking for the state in its obligations or
32154. The powers granted to the authority by this division may be
exercised without regard or reference to any department or agency of
the state. All other general or special laws, or parts thereof,
inconsistent with this division are hereby declared to be
inapplicable to the provisions of this division. Nothing in this
division shall be interpreted to exempt the construction or
acquisition of any urban waterfront restoration project by any
participating party from compliance with all applicable local, state,
or federal laws and regulations.
32200. The authority may contract with any participating party for
the construction of an urban waterfront restoration project by the
participating party. All contracts for the construction of a project
by a participating party shall provide that the participating party
is responsible for the architectural and engineering design and for
the construction and completion thereof, subject to the standards for
architectural and engineering design as may be established, and
subject to the supervision, as the conservancy and the authority deem
The authority may agree to pay the cost of the project constructed
by any participating party and to advance the costs from time to
time in installments or otherwise as required by the contract for the
construction thereof. Title to all projects shall be vested in the
authority, subject to the terms of any lease thereof to the
participating party or the rights of a participating party under any
contract for the purchase of the project, including the payment of
the purchase price under installment sales contracts.
32201. The authority may, as lessor or lessee, enter into leases
and agreements with any participating party relating to the
acquisition, construction, and installation of any project, including
real property, buildings, machinery, furnishings, equipment, and
urban waterfront restoration facilities of any kind or character.
The terms and conditions of these leases may be as mutually agreed
upon. The lease may provide the means or methods by which title
shall vest in a participating party upon the termination of the lease
and shall contain other terms and conditions that the authority may
The authority may fix, revise, charge, and collect rates, rents,
fees, and charges for each project. These rates, rents, fees, and
charges shall be fixed and adjusted with respect to the aggregate of
rates, rents, fees, and charges from all projects so as to provide
funds sufficient with other revenues and moneys available therefor,
if any, to do all of the following:
(a) Pay the principal of, and the interest on, outstanding bonds,
notes, or other evidences of indebtedness of the authority issued
with respect to the urban waterfront restoration project that become
due and payable.
(b) Create and maintain reserves required or provided for in any
resolution authorizing, or trust agreement securing, the bonds. A
sufficient amount of the revenues derived from a project may be set
aside at regular intervals as may be provided in the resolution or
trust agreement in a sinking or other similar fund which is hereby
pledged to, and charged with, the payment of the principal of and
interest on these bonds as they become due, and the redemption price
or the purchase price of bonds retired by call or purchase as
provided therein. The pledge shall be valid and binding from the
time the pledge is made; the rates, rents, fees, and charges and
other revenues or other moneys so pledged and thereafter received by
the authority shall immediately be subject to the lien of this pledge
without any physical delivery thereof or further act, and the lien
of this pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise against the
authority, regardless of whether the parties have notice thereof.
The resolution or any trust agreement or any other agreement or any
lease by which a pledge is created need not be filed or recorded
except in the records of the authority. The use and disposition of
moneys to the credit of the sinking or other similar fund shall be
subject to the resolution authorizing the issuance of the bonds or of
the trust agreement. Except as may otherwise be provided in the
resolution or the trust agreement, the sinking or other similar fund
may be a fund for all bonds of the authority issued to finance
projects of a particular participating party without distinction or
priority of one over another. However, the authority, in any
resolution or trust agreement, may provide that the sinking or other
similar fund shall be the fund for a particular project or projects
and for the bonds issued to finance a particular project or projects
and may, additionally, permit and provide for the issuance of bonds
having a subordinate lien with respect to the security authorized for
other bonds of the authority, and, in such case, the authority may
create separate sinking or other similar funds with respect to the
subordinate lien bonds.
(c) Pay the operating and administrative costs of the authority,
and the operating and administrative expenses of the conservancy in
carrying out its responsibilities under this division.
32202. The authority may enter into contracts of sale with any
participating party covering any urban waterfront restoration project
financed by the authority. The purchase price pursuant to the
contract of sale shall be treated in substantially the same manner
and shall be at least sufficient to provide funds for all the
purposes specified in Section 32201 and may be paid in installments,
together with interest on the unpaid balance, or otherwise, as may be
mutually agreed and set forth in the contract of sale.
All payments received by the authority under any installment sales
or conditional sales contract shall be applied by the authority
substantially in the same manner as in Section 32201 in the case of
lease payments or rental charges received by the authority.
32203. As an alternative to leasing or selling an urban waterfront
restoration project to a participating party, the authority may
finance the acquisition, construction, or installation of a project
by means of a loan to the participating party.
The principal amount of the participating party's obligation, as
borrower, shall be sufficient to provide funds for all the purposes
specified in subdivisions (a), (b), and (c) of Section 32201 and may
be paid in installments, together with interest on the unpaid
balance, or otherwise as may be mutually agreed by the authority and
the participating party and set forth in the loan agreement. Loans
made pursuant to this section may be secured or unsecured, in the
discretion of the authority.
Section 32200 is not applicable to projects constructed with money
loaned pursuant to this section.
32204. All moneys received pursuant to this division, whether as
proceeds from the sale of bonds, notes, or other evidence of
indebtedness or as revenues, are trust funds to be held and applied
solely as provided in this division.
Any bank or trust company with which the moneys are deposited
shall act as trustee of these moneys and shall hold and apply them
for the purposes of this division, subject to the resolution
authorizing the bonds of any issue or the trust agreements securing
the bonds provide.
32205. Any holder of bonds, notes, or other obligations issued
under this division or any of the coupons appertaining thereto, and
the trustee or trustees under any trust agreement, except to the
extent the rights herein given which may be restricted by any
resolution authorizing the issuance of, or the trust agreement
securing, the bonds, notes, or other obligations, may, either at law
or in equity, by suit, action, mandamus, or other proceedings,
protect and enforce any and all rights under the laws of the state or
granted hereunder or under the resolution or trust agreements, and
may enforce and compel the performance of all duties required by this
division or by the resolution or trust agreement to be performed by
the authority or by any officer, employee, or agent thereof,
including the fixing, charging,and collecting of the rates, rents, (continued)