Note: In the case of City of Glendale v. Chapman et al., 108 Cal. App. (2d) 75, 238 P. (2d) 162, it was held that an ordinance authorizing the issuance of municipal waterworks bonds payable only out of the net earnings of the waterworks is not invalid as authorizing the incurring of indebtedness contrary to section 18, article 11 of the constitution, requiring the vote of the people.
Revenue bonds for the purpose of providing moneys for the acquisition or construction of additions to or extensions or improvements of the waterworks or electric works of the city or for the purpose of refunding any revenue bonds previously issued under this article may be issued only as provided in this article. Such revenue bonds shall not constitute any indebtedness of the city but shall be payable, principal and interest, only from the revenue fund derived from the public utility to be added to, extended or improved with the proceeds of said bonds or the proceeds of the bonds to be refunded with said bonds, and no restrictions or limitations upon or procedure for the issuance of bonds in other articles of this Charter shall apply to such revenue bonds. (1949.)
Editor's Note: The catchline of this section originally read as follows: "Revenue bond purposes."
Whenever the council proposes to issue revenue bonds pursuant to this article it shall adopt an ordinance authorizing the issuance of such bonds which shall recite the objects and purposes for which the bonds are to be issued, the principal amount thereof, the maximum rate of interest thereon, the date of issue of said bonds, the maturity dates thereof, and the revenue fund from which said bonds and the interest thereon are to be payable, and such provisions authorized by Section 3 of this article as the council deems desirable. Said bonds shall be issued in negotiable form and shall be negotiable. The recitals of regularity of proceedings in any revenue bond issued and sold shall be conclusive evidence of compliance with the provisions of this article and of the validity of such bond. (1949.)
Editor's Note: The catchline of this section originally read as follows: "Revenue bond ordinance."
In the ordinance authorizing the issuance of said bonds or in any ordinance, resolution or order in the proceedings for the issuance and sale thereof, or in any indenture authorized by the council in respect of said bonds, the council may, in any article, section, sentence, or clause thereof make such provisions as it may deem necessary or desirable to facilitate the issuance and sale of the bonds or for the protection or security of the holders thereof, including without affecting the generality of the foregoing provisions for any or all of the following:
1. 
The denominations of the bonds, the rate or rates of interest thereon, the medium of payment thereof, the place or places of payment thereof, within or without the State of California, the form of said bonds (including recitals of regularity) and of interest coupons pertaining thereto, the form, denomination and conditions of any temporary bonds or interim certificates, and the manual or facsimile signatures to be affixed to said bonds, coupons or certificates.
2. 
The terms and conditions under which said bonds may be issued, sold, paid, called before maturity, refunded, exchanged, registered, transferred and negotiated, and issues for more than one purpose or utility may be sold on all or none basis.
3. 
Rates to be charged for services furnished by the public utility added to, extended or improved with the proceeds of said bonds, such rates to provide revenue at least sufficient to pay as the same become due, principal and interest of such bonds and all other obligations payable from the revenue fund of such works or from any fund derived therefrom and the necessary expenses of maintaining and operating such works, and the extent to which such services may be furnished or rendered to the city or to any public corporation free or at lower rates than those otherwise charged.
4. 
The revenue fund from which said bonds and the interest thereon shall be paid; the collection, deposit and safekeeping of revenues, the permissible uses thereof (including restrictions upon or prohibitions against any uses authorized or required by other articles of this Charter), the special fund or funds to be kept for the payment of principal and interest of the bonds, including reserve, sinking, interest and redemption, and trust funds; the permissible investments for moneys in said funds, the accounts and records to be kept, audits thereof and examination thereof by bondholders and others.
5. 
The carrying of insurance upon such public utility, or any part thereof, against any and all risks.
6. 
Prohibitions against or limitations upon the sale, lease or other disposition of such public utility.
7. 
Prohibitions against or limitations upon the issuance of any additional bonds payable from the revenues of the public utility so acquired, constructed, extended or improved, but no bonds shall be issued pursuant to this article or under any other provision of this Charter having any priority in payment of principal or interest out of such revenues over revenue bonds theretofore or thereafter issued and payable out of said revenues.
8. 
Provisions whereby the consent or agreement of a stated percentage or number of the holders of the bonds may bind all holders to modifications of the provisions of any ordinance, resolution, order or indenture authorizing or providing for the issuance of such bonds, or to a refunding of said bonds and to calls or exchanges in connection with such refunding.
9. 
Any other provisions valid under the Constitutions of the State of California and United States of America which the council deems necessary or desirable to facilitate the issuance and sale of said bonds or for the protection of holders thereof.
The ordinance authorizing the issuance of said bonds, any indenture authorized by the council, and all other ordinances, resolutions, or orders in the proceeding for the issuance of said bonds shall constitute a contract with the holders of the bonds and may be enforced by them under any applicable legal remedies. (1949.)
Editor's Note: The catchline of this section originally read as follows: "Revenue bonds—Terms and conditions."
The following limitations shall apply to the issuance of bonds under this article.
1. 
Said bonds shall be payable within not more than forty years from the date of issue thereof, and not less than one fortieth part of the whole of any issue of bonds shall be payable annually beginning not later than 10 years from the date of such issue.
2. 
Said bonds shall be designated "Revenue Bonds" and each bond shall state on its face that it does not constitute an indebtedness of the City of Glendale but is payable, principal and interest, only from the revenue fund of the utility for which the proceeds of the bonds will be used.
3. 
Said bonds shall be sold only at public sale following such notice as the council by resolution may prescribe; provided, however, that if no satisfactory bid is received pursuant to such notice the council may reject all bids received, if any, and thereafter sell said bonds at public or private sale; provided, further, that the provisions of this subsection shall not apply to the exchange of any refunding bonds.
4. 
Said bonds shall be sold for not less than par and accrued interest to date of delivery. The proceeds from the sale (except premium and accrued interest which shall be used for the payment of principal and interest of the bonds) shall be applied exclusively to the objects and purposes set forth in the ordinance authorizing the issuance thereof; provided, however, that said proceeds may be used for the payment of interest on said bonds during the period of acquisition and construction and for the first six months thereafter; and provided, further, that when the objects and purposes for which the bonds were issued have been accomplished any remaining unexpended funds derived from the sale of said bonds shall be used for the payment of the principal and interest of said bonds. (1949.)
Editor's Note: The catchline of this section originally read as follows: "Revenue bonds—Limitations."
To the extent that any provision of any ordinance authorizing the issuance of bonds pursuant to this article or of any ordinance, resolution, order or indenture pertaining thereto, adopted, made or entered into pursuant to the authority of this article, is inconsistent with any of the provisions of any other article of this Charter, the provisions of such ordinance, resolution, order or indenture shall control so long as any of the bonds and interest coupons to which the same pertain are outstanding and unpaid. (1949.)
Editor's Note: The catchline of this section originally read as follows: "Revenue bond proceedings—Effect of."