California Health And Safety Code Section 44542
(a) The authority is authorized from time to time to issueits negotiable bonds, notes, debentures, or other securities(hereinafter collectively called bonds) for any corporate purpose.Such bonds may be authorized, without limiting the generality of theforegoing, to finance a single project for a single participatingparty, a series of projects for a single participating party, asingle project for several participating parties, or several projectsfor several participating parties. In anticipation of the sale of such bonds as authorized by Section44540, or as may be authorized pursuant to Section 44541, theauthority may issue negotiable bond anticipation notes and may renewthe same from time to time. Such bond anticipation notes may be paidfrom the proceeds of sale of the bonds of the authority inanticipation of which they were issued. Notes and agreementsrelating thereto and bond anticipation notes, hereinaftercollectively called notes, and the resolution or resolutionsauthorizing the same may contain any provisions, conditions orlimitations which a bond, agreement relating thereto, and bondresolution of the authority may contain; except that such note orrenewal thereof shall mature at such time not exceeding three yearsfrom the date of issue of the original note. (b) Except as may otherwise be expressly provided by theauthority, every issue of its bonds, notes, or other obligation shallbe general obligations of the authority payable from any revenues ormoneys of the authority available therefor and not otherwisepledged, subject only to any agreements with the holders ofparticular bonds, notes, or other obligations pledging any particularrevenues or moneys and subject to any agreements with anyparticipating party. Notwithstanding that such bonds, notes, orother obligations may be payable from a special fund, they shall beand be deemed to be for all purposes negotiable instruments, subjectonly to the provisions of such bonds, notes or other obligations forregistration. (c) The bonds may be issued as serial bonds or as term bonds, orthe authority in its discretion, may issue bonds of both types. Thebonds shall be authorized by resolution of the authority and shallbear such date or dates, mature at such time or times, not exceeding50 years from their respective dates, bear interest at such rate orrates, be payable at such time or times, be in such denominations, bein such form, either coupon or registered, carry such registrationprivileges, be executed in such manner, be payable in lawful money ofthe United States of America at such place or places, and be subjectto such terms of redemption, as such resolution or resolutions mayprovide. The bonds or notes shall be sold by the State Treasurerwithin 60 days of receipt of a certified copy of the authority'sresolution authorizing the sale of the bonds; provided, that theauthority, at its discretion, may adopt a resolution extending such60-day period. Such sales may be at public or private sale, and forsuch price or prices and on such terms and conditions, as theauthority shall determine after giving due consideration to therecommendations of any participating party to be assisted from theproceeds of such bonds or notes. Pending preparation of thedefinitive bonds, the State Treasurer may issue interim receipts,certificates, or temporary bonds which shall be exchanged for suchdefinitive bonds. The State Treasurer may sell any bonds, notes, orother evidence of indebtedness at a price below the par valuethereof; provided, however, that the discount on any security so soldshall not exceed 6 percent of the par value thereof. (d) Any resolution or resolutions authorizing any bonds or anyissue of bonds may contain provisions, which shall be a part of thecontract with the holders of the bonds to be authorized, as to: (1) Pledging the full faith and credit of the authority orpledging all or any part of the revenues of any project or anyrevenue-producing contract or contracts made by the authority withany individual, partnership, corporation, or association or otherbody, public or private, or other moneys of the authority, to securethe payment of the bonds or of any particular issue of bonds, subjectto such agreements with bondholders as may then exist. (2) The rentals, fees, purchase payments, and other charges to becharged, and the amounts to be raised in each year thereby, and theuse and disposition of the revenues. (3) The setting aside of reserves or sinking funds, and theregulation and disposition thereof. (4) Limitations on the right of the authority or its agent torestrict and regulate the use of the project or projects to befinanced out of the proceeds of the bonds or any particular issue ofbonds. (5) Limitations on the purpose to which the proceeds of sale ofany issue of bonds then or thereafter to be issued may be applied andpledging such proceeds to secure the payment of the bonds or anyissue of the bonds. (6) Limitations on the issuance of additional bonds, the termsupon which additional bonds may be issued and secured and therefunding of outstanding bonds. (7) The procedure, if any, by which the terms of any contract withbondholders may be amended or abrogated, the amount of bonds theholders of which must consent thereto, and the manner in which suchconsent may be given. (8) Limitations on expenditures for operating, administrative, orother expenses of the authority. (9) Defining the acts or omissions to act which shall constitute adefault in the duties of the authority to holders of its obligationsand providing the rights and remedies of such holders in the eventof a default. (10) The mortgaging of any project and the site thereof for thepurpose of securing the bondholders. (11) The mortgaging of land, improvements, or other assets ownedby a participating party for the purpose of securing the bondholders. (12) Procedures for the selection of projects to be financed withthe proceeds of the bonds authorized by the resolution if the bondsare to be sold in advance of the designation of the projects andparticipating parties to receive such financing. (e) Neither the members of the authority nor any person executingthe bonds or notes shall be liable personally on the bonds or notesor be subject to any personal liability or accountability by reasonof the issuance thereof. (f) The authority shall have power out of any funds availabletherefor to purchase its bonds or notes. The authority may hold,pledge, cancel, or resell such bonds, subject to and in accordancewith agreements with bondholders.