Bonds shall be issued according to the following procedures:
(a) The Los Angeles Housing Department shall submit any plan for the issuance of Bonds to the City Council and the Mayor, and the plan shall be referred to the Director of the Office of Administrative and Research Services and to the Municipal Housing Finance Fund Administrator for the separate study and report of each.
(b) Upon receipt of the two reports, if the City Council approves the plan either as submitted or as modified by the City Council, the City Council shall adopt a resolution (“Authorizing Resolution”), which, subject to the approval of the Mayor, authorizes the issuance of Bonds. If the Mayor disapproves the Authorizing Resolution, the City Council may override that disapproval by a two-thirds vote of the whole Council; provided however, that in the event the Mayor fails to disapprove within 10 days after receipt of the Authorizing Resolution, it shall be deemed to have been approved.
(c) The Authorizing Resolution may contain findings and declarations with respect to the public purpose for the issuance of the Bonds. It shall also state that it is being adopted pursuant to this article and City Charter Section 248. The findings and declarations shall be conclusive evidence of the existence and sufficiency of the public purpose and powers.
(d) Any Authorizing Resolution may contain provisions as to:
(1) the use and disposition of the revenues and receipts arising from the Bond issue, including the creation and maintenance of reserves,
(2) any insurance required with respect to any Development or as security for any Bonds and the use and disposition of insurance monies,
(3) the appointment of one or more banks or trust companies within or outside the state having the necessary trust powers as trustee, custodian, or trustee and custodian for the benefit of the bondholders, paying agent, or bond registrar,
(4) the investment of any funds held by such trustee or custodian,
(5) the maximum interest rate payable on any deed of trust securing a loan made directly or indirectly from Bond proceeds to finance a Development, and
(6) the terms and conditions upon which the holders of Bonds or any portion thereof, or any trustees therefor, are entitled to the appointment of a receiver by a court of competent jurisdiction, and which may provide that the receiver may take possession of the deeds of trust securing Developments or any part thereto, and maintain, sell or otherwise dispose of such deeds of trust, prescribe other payments and collect, receive and apply all future income and revenues.
(e) Any Authorizing Resolution may provide that the principal or redemption price of, and interest on, the Bonds shall be secured by a deed of trust, pledge, assignment, security interest, insurance agreement or indenture of trust covering such Developments or loans or deposits for which Bonds are issued and may include any future improvements or extensions. They may contain provisions and agreements to properly safeguard the Bonds.
(f) Bonds shall bear interest at such rate or rates, may be payable at such times, may be in one or more series, may bear such date or dates, may mature at such time or times not exceeding 45 years from the respective dates, may be payable in such medium of payment at such place or places, may carry such registration privileges, may be subject to such terms of redemption at such premiums, may be executed in such manner, may contain such terms, covenants and conditions, as the Authorizing Resolution may provide. Bonds may be sold at public or private sale in such manner and upon such terms as may be provided in the Authorizing Resolution. Pending the preparation of definitive Bonds, temporary bonds, interim receipts or certificates in such form and with such provisions as may be provided in the Authorizing Resolution may be issued to the purchaser or purchasers of Bonds. Bonds, temporary bonds, interim receipts or certificates shall be deemed to be securities and negotiable instruments within the meaning and for all purposes of the Uniform Commercial Code of this state, subject to the provisions or registration thereof contained in the Authorizing Resolution.
(g) Bonds issued under this article may be secured by a pledge of, or lien upon the revenues and receipts derived from or with respect to the Developments or from or with respect to any notes or other obligations with respect to which Bonds have been issued, and the City Council may provide in the Authorizing Resolution for the issuance of additional Bonds to be equally and ratably secured by a lien upon such revenues and receipts.
(h) Any pledge made to secure Bonds shall be valid and binding from the time when the pledge is made. The revenues and receipts of property or interest in property pledged and thereafter received from the City, a trustee or a custodian shall immediately be subject to a lien of such pledge without any physical delivery thereof or further act, and a 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, a trustee or a custodian irrespective of whether the parties have notice thereof. Neither a resolution nor any instrument by which a pledge is created need be recorded.
(i) Neither the members of the City Council nor any official or employee of the City nor any person executing the Bonds shall be liable personally on such Bonds or be subject to any personal liability or accountability by reason of the issuance of the Bonds.
SECTION HISTORY
Added by Ord. No. 173,302, Eff. 6-30-00, Oper. 7-1-00.
Amended by: Ord. No. 182,718, Eff. 10-30-13; Ord. No. 187,122, Eff. 8-8-21.