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California Law (Last Updated: March 4, 2014) |
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Government Code - GOV |
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Title 5. LOCAL AGENCIES |
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Division 2. CITIES, COUNTIES, AND OTHER AGENCIES |
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Part 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES |
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Chapter 2.5. The Mello-Roos Community Facilities Act of 1982 |
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ARTICLE 5. Bonds |
Section 53356.05.
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The bond indenture or other bond documents may provide that the legislative body agrees to notify one or more parties, including the underwriter or other first purchaser of the bonds, an appropriate national repository for bond information approved by the Securities and Exchange Commission, or the California Debt and Investment Advisory Commission, if specified events occur that may affect the market value of outstanding bonds. These events may include, but are not limited to, the following, for example:
(a) Withdrawal of funds from any reserve fund for the bonds, such that the balance in the fund falls below a specified percentage of the amount required by bond documents.
(b) Draw upon a letter of credit or other credit enhancement for the bonds.
(c) Filing for bankruptcy by a developer or other owner of more than a specified percentage of the area or property value within the district.
(d) Unforeseen discovery of toxic materials or rare and endangered plant or animal species within areas of the district proposed for development.