California § 64631 - The authority may incur or refund general obligation bonded indebtedness, secured

§ 64631. The authority may incur or refund general obligation bonded indebtedness, secured

(a) The authority may incur or refund general obligation bonded indebtedness, secured by the levy of ad valorem property taxes, pursuant to Article XIII A of the California Constitution, and any amendment thereto, for any purpose allowed by state law or the California Constitution. (b) For purposes of incurring general obligation bonded indebtedness pursuant to this section, the authority shall comply with the requirements of Chapter 3 (commencing with Section 53400) of Part 1 of Division 2 of Title 5. (c) The board of the authority shall annually at the time of making the levy of taxes for county purposes, levy a tax for that year upon property in the authority’s jurisdiction for the interest and redemption of all outstanding bonds of the authority, as provided by Section 1 of Article XIII A of the California Constitution. The tax shall not be less than sufficient to pay the interest on the bonds as it becomes due and to provide a sinking fund for the payment of the principal payable or on before maturity and may include an allowance for an annual reserve, established for the purpose of avoiding fluctuating tax levies. The tax shall be sufficient to provide funds for the payment of the interest on the bonds as it becomes due and also any part of the principal and interest that is to become due before the proceeds of a tax levied at the time for making the next general tax levy may be made available for the payment of the principal and interest.