3.72.090 Terms of bonds.

   Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the holders of the bonds:

   A.   The pledge of all or any part of the revenues subject to such agreements with bondholders as may then exist;

   B.   The interest and principal to be received and other charges to be charged and the amounts to be raised 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 purposes to which the proceeds of a sale of any issue of bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the payment of the bonds or any issue of bonds;

   E.   Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;

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

   G.   Specification of the acts or omissions to act which shall constitute a default in the duties of the city to holders of its obligations, and providing the rights and remedies of such holders in the event of default;

   H.   The mortgaging of land, improvements, or other assets owned by a participating party for the purpose of securing the bondholders;

   I.   Such other terms and conditions pertaining to the issuance of the bonds as are deemed advisable by the city council.

(Ord. 1423 (part))

3.72.100 Trust agreement.

   In the discretion of the city council, any bonds issued under the provisions of this ordinance may be secured by a trust agreement by and between the city and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received or proceeds of any contract or contracts pledged, and may convey or mortgage any property. Such trust agreement or resolution providing for the issuance of bonds may contain such 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 such provisions as may be included in any resolution or resolutions of the city council authorizing the issuance of bonds pursuant to Section 3.72.090 of this chapter. Any bank or trust company doing business under the laws of the state which may act as depository of the proceeds of bonds or of revenues or other moneys may furnish such indemnity bonds or pledge such securities as may be required by the city. Any such 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 to the foregoing, any such trust agreement or resolution may contain such other provisions as the city council may deem reasonable and proper for the security of the bondholders.

(Ord. 1423 (part))

3.72.110 Personal liability.

   Neither the members of the city council nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(Ord. 1423 (part))

3.72.120 Refunding bonds.

   The city council may provide for the issuance of bonds any portion of which is to be used for the purpose of refunding outstanding bonds, including the payment of the principal thereof and interest and redemption premiums, if any, thereon. The proceeds of bonds issued to refund any outstanding bonds may, in the discretion of the city council, be applied to the retirement of such outstanding bonds at maturity, or the redemption (on any redemption date) or purchase of such outstanding bonds prior to maturity, upon such terms and subject to such conditions as the city council shall deem advisable.

(Ord. 1423 (part))

3.72.130 Repayment of bonds.

   Revenues shall be the sole source of funds pledged by the city for repayment of bonds issued hereunder. Bonds issued hereunder 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 revenues. All bonds shall contain on the face thereof a statement to the following effect:

      Neither the faith and credit nor the taxing power of the City of Chico is pledged to the payment of the principal of or interest on this bond.

   The issuance of bonds shall not directly, indirectly or contingently obligate the city council to levy or pledge any form of taxation or to make any appropriation for their payment.

(Ord. 1423 (part))

3.72.140 Authority to assist projects.

   The city may provide financing to any participating party for, or otherwise assist the acquisition of, duly approved projects pursuant to this ordinance. At the discretion of the city council the financial assistance provided hereunder may take any form deemed advisable for the successful financing of the project, including without limitation in the form of a loan, lease or installment sale.

(Ord. 1423 (part))

3.72.150 Financing agreements.

   The city may enter into agreements with any participating party with respect to the financing of a project, which agreements may provide that the architectural and engineering design of the project shall be subject to such standards as may be established by the city and that the acquisition of the project shall be subject to such supervision as the city deems necessary. The terms and conditions of such agreements may be as mutually agreed upon, but shall not be inconsistent with the provisions of this ordinance. Any such agreement may provide the means or methods by which any mortgage taken by the city shall be discharged, and it shall contain a covenant by the participating party to complete the project whether or not bond proceeds are sufficient therefor, and such other terms and conditions as the city may require. The city is authorized to fix, revise, charge, and collect interest and principal and all other rates, fees, and charges with respect to the financing of a project. Such rates, fees, charges, and interest shall be fixed and adjusted so that the aggregate of such rates, fees, charges, and interest will provide funds sufficient with other revenues and moneys which it is anticipated will be available therefor, if any, to do all of the following:

   A.   Pay the principal of and interest on outstanding bonds issued to finance such project, as the same shall become due and payable;

   B.   Create and maintain reserves required or provided for in any resolution authorizing such bonds. A sufficient amount of the revenues derived from the project may be set aside at such regular intervals as may be provided by the resolution or trust agreement in a sinking or other similar fund, which shall be pledged to, and charged with, the payment of the principal of and interest on such bonds as the same shall become due and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time the pledge is made. The rates, fees, interest, and other charges, revenues, or moneys 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 resolution, the trust agreement nor any agreement by which a pledge is created need be filed or recorded except in the records of the city. The use and disposition of moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution or trust agreement authorizing the issuance of such bonds;

   C.   Pay administrative expenses to the extent not paid from bond proceeds.

(Ord. 1423 (part))

3.72.160 Trust funds.

   All moneys received pursuant to the provisions of this ordinance, whether proceeds from the sale of bonds or revenues, shall be deemed to be trust funds to be held and applied solely for the purposes of this ordnance. Any bank or trust company in which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this ordinance, subject to the terms of the resolution or trust agreement authorizing the bonds.

(Ord. 1423 (part))

3.72.170 Liberal construction.

   This ordinance, being necessary for the health, welfare and safety of the city and its residents, shall be liberally construed to effect its purposes. Furthermore, the city council hereby declares that this ordinance is an exercise of the power granted to the city by the City Charter and the Constitution of the state and is an exercise by the city of its powers as to municipal affairs and its police powers, and this ordinance shall be liberally construed to uphold its validity under the laws of the state.

(Ord. 1423 (part))