AB 422, as introduced, McCarty. Sacramento Regional Transit District: line of credit.
Existing law provides for the creation of the Sacramento Regional Transit District, with specified powers and duties relative to the provision of public transit services. Existing law authorizes the district to engage in temporary borrowing, as specified.
This bill would additionally authorize the district to seek and receive a short term revolving line of credit for operating purposes in anticipation of receipt of operating grants, with the extension of credit to the district evidenced by a note. The bill would authorize the district to pledge anticipated grants and other available revenues as security for repayment of the note and would prescribe other terms.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 102584 is added to the Public Utilities
2Code, to read:
In addition to the borrowing authority in Section
4102582, the district may seek and obtain a short term revolving
P2 1line of credit for operating purposes in anticipation of receipt of
2operating grants, with the extension of credit to the district
3evidenced by a note. The district may pledge the anticipated grants
4and any other available revenues as security for repayment of the
5note. The note shall have a maturity date of not more than 60
6months from the date of issuance. The district may pledge
7anticipated operating grants over a multiyear period, as long as
8the note is paid in full by the maturity date. The maximum
9indebtedness under the note shall not exceed 85 percent of the
10amount of the anticipated grants and other funds pledged to repay
11the note.
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