Section 53190.5 - Provisions required in agreement; requirement of warrants issuedA reimbursement agreement shall contain both of the following provisions:
(a) A requirement that the investor advance funds to the local agency to be used by the local agency exclusively to pay the costs of the work described in the resolution of intention adopted pursuant to Section 53181, or that the investor perform the work in whole or in part, or any combination thereof.(b) A requirement that the local agency issue the investor a warrant entitling the investor to all or a specified amount or portion of the moneys deposited in the fund, determined pursuant to the resolution of intention, and payable at the time or times specified in the reimbursement agreement. The reimbursement agreement shall state that the general fund of the local agency, its credit, or its taxing power is not liable for payment of any obligation arising from the reimbursement agreement. The warrants issued pursuant to this subdivision shall include all of the following provisions:
(1) A designation of the place at which the warrant shall be paid.(2) The source of revenue securing the warrant.(3) The issuance and expiration date of the warrant.(4) A specification that the warrant is a negotiable instrument.(5) The schedule of payments to the investor, including the date of the first payment, the number of payments, and the frequency of payments.(6) The purpose for which the warrant is issued.(7) The maximum principal amount of the warrant.(8) The rate of interest payable upon the warrant. The interest rate shall not exceed the maximum rate permitted by Section 53531 or any other applicable provision of law.(9) A statement of findings that, in the opinion of the legislative body, the interest paid on the warrant to the investor is excluded from income in determining the investor's federal income tax liability.Added by Stats. 1986, Ch. 1512, Sec. 1.