LEG00050

• Bill Number: SB03-236
• Year: 2003
• Title: Water Board Revenue Bonds
• Legislation - Doc Type: Other CWCB Related Bills - Passed

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ANY RESOLUTION, ORDINANCE, OR OTljER SECURITY INSTRUMENT.
(b) A CONTRACT OR AGREEMENT MAY CONTAIN SUCH OTHER

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3 TERMS AND CONDITIONS AS A POLITICAL SUBDIVISION MAY DETERMINE,

4 INCLUDING BUT NOT LIMITED TO PROVISIONS WHEREBY THE POLITICAL

5 SUBDIVISION IS OBLIGATED TO PAY FORTHE OUTPUT, CAPACITY, OR USE OF

6 AN APPROVED WATER INFRASTRUCTURE PROJECT IRRESPECTIVE OF

7 WHETHER SUCH OUTPUT, CAPACITY, OR USE IS PRODUCED OR DELIVERED

8 TO THE POLITICAL SUBDIVISION' OR WHETHER ANY PROJECT

9 CONTEMPLATED BY ANY SUCH AGREEIV1ENT IS COMPLETED, OPERABLE, OR

10 OPERATING, AND NOTWITHSTANDING SUSPENSION, INTERRUPTION,

11 INTERFERENCE, REDUCTION, OR CURTAILMENT OF THE OUTPUT, USE, OR

12 SERVICE OF THE PROJECT.

13 (C) SUBJECT TO LOCAL CHARTER AND STATE CONSTITUTIONAL

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LIMITATIONS, A CONTRACT OR AGREEMENT MAY ALSO PROVIDE THAT IF

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15 ONE OR MORE OFTHE POLITICAL SUBDIVISIONS DEFAULTS IN THE PAYMENT

16 OF ITS OBLIGATIONS UNDER THE CONTRACT OR AGREEMENT, THE

17 REMAINING POLITICAL SUBDIVISIONS THAT ALSO HAVE SIMILAR

18 CONTRACTS OR AGREEMENTS WITH RESPECT TO THE SAME PROJECT SHALL

19 BE REQUIRED TO ACCEPT AND PAY' FOR, AND SHALL BE ENTITLED

20 PROPORTIONATELY TO USE OR OTHERWISE DISPOSE OF, THE OUTPUT,

21 CAPACITY, OR USE OF THE PROJECT THA!J' IS THE SUBJECT OF THE CONTRACT

22 OR AGREEMENT ENTERED INTO BY THE DEFAULTING POLITICAL

23 SUBDIVISION. THE OBLIGATIONS OF A POLITICAL SUBDIVISION UNDER A

24 CONTRACT OR AGREEMENT SHALL EITHER CONSTITUTE SPECIAL

25 OBLIGATIONS OF THE POLITICAL SUBDIVISION, PAYABLE SOLELY FROM THE

26 REVENUES AND OTHER MONEYS DERIVED BY THE POLITICAL SUBDIVISION

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FROM THE PROJECT, AND SHALL BE TREATED AS EXPENSES OF OPERATING

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-16.

SB03-236