of the United States are obligations of the United States and, accordingly, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24. (Comptroller's letter dated Sept. 23, 1968.)

[33 F.R. 15336, Oct. 16, 1968]

§ 1.225 Merced County-Los Banos Public Safety Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $400,000 Merced County-Los Banos Public Safety Authority, Public Safety Facilities, 1968 Revenue Bonds for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Merced CountyLos Banos Public Safety Authority is a public entity created under the laws of California by an agreement between the City of Los Banos and the County of Merced. Under this agreement the Authority is authorized to acquire a site for and to acquire, construct and lease public safety facilities for the City and the County and to issue bonds to finance such projects. The Authority is issuing these bonds to reimburse the City for a site for and to finance the construction of a public safety building and related facilities which will be leased to the City. The building will house the City police department and will include space and facilities to be shared by the County sheriff.

unconditionally

(2) The City has agreed with the County to pay annual rentals to the Authority in an amount sufficient to meet the annual interest and principal payments on these bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $400,000 Merced County-Los Banos Public Safety Authority, Public Safety Facilities, 1968 Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated Oct. 4, 1968.)

[33 F.R. 15336, Oct. 16, 1968]

§ 1.226

Seal Beach Administration Building Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $450,000 Seal Beach Administration Building Authority Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Seal Beach Administration Building Authority is a public entity created under the laws of California by an agreement between the City of Seal Beach and Orange County Sanitation District No. 4. Under this agreement the Authority is authorized to acquire and construct an administration building and related facilities for City and District services to be leased to and operated by the City and to issue bonds to finance this project. The Authority is issuing these bonds for that purpose.

(2) The City, as required by its agreement with the District, has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on the bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $450,000 Seal Beach Administration Building Authority Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. (Comptroller's letter dated Oct. 7, 1968.)

[33 F.R. 15336, Oct. 16, 1968]

SECURITIES ELIGIBLE FOR UNDERWRITING AND UNLIMITED HOLDING

§ 1.227 Orange County-La Palma Civic Center Authority (California).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $800,000 Orange County-La Palma Civic Center Authority Revenue Bonds for purchase, dealing in underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Orange CountyLa Palma Civic Center Authority is a public entity created under the laws of

California by an agreement between the City of La Palma and the County of Orange. Under this agreement the Authority is authorized to acquire sites for and to acquire, construct, and lease public buildings for governmental services, including administrative and meeting facilities, public safety facilities, and library facilities and to issue bonds to finance such projects. The Authority is issuing these bonds to finance the construction of a Civic Center, including a city hall, public safety buildings, and a library, which will be leased to the City.

(2) The City as required by its agreement with the County, has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $800,000 Orange County-La Palma Civic Center Authority Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. (Acting Comptroller's letter dated Oct. 15, 1968.) [34 F.R. 13149, Aug. 14, 1969]

§ 1.228 Parking Authority, Huntington Beach, Calif.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $2,300,000 (1968) Parking Revenue Bonds of the Parking Authority of the City of Huntington Beach for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Parking Authority of the City of Huntington Beach is a public body corporate and politic created by the laws of California but authorized to function only upon a finding of need. The city council has made the appropriate finding and, in accordance with the law, has declared itself to be the parking authority. Under the law a parking authority is authorized to issue revenue bonds to finance public parking facilities and may issue such bonds without obtaining the approval of the electors of the city where the bonds are

issued to finance a project which is to be leased to the city and where the principal of and interest on the bonds are to be payable from rentals paid by the city under such lease. The authority is issuing these bonds to finance the acquisition and construction of parking. facilities which will be leased to the City.

(2) Under the lease rental agreement the City has unconditionally promised to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion therefore that the $2,300,000 (1968) Parking Revenue Bonds of the Parking Authority of the City of Huntington Beach are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, accordingly, are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Acting Comptroller's letter dated Oct. 16, 1968.) [34 F.R. 13149, Aug. 14, 1969]

§ 1.229 Montclair Fire Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,170,000 Montclair Fire Authority Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Montclair Fire Authority is a public entity created under the laws of California by an agreement between the City of Montclair and the Monte Vista Fire Protection District. Under this agreement the Authority is authorized to acquire a site for, and to construct, fire protection buildings, facilities and appurtenances to be leased to and operated by the City and to issue bonds to finance the project. The Authority is issuing these bonds to finance the construction of a fire department headquarters, a substation and a maintenance and training facility.

(2) The City, as required by its agreement with the District, has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The City which possesses gen

eral powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $1,170,000 Montclair Fire Authority Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. (Comptroller's letter dated Dec. 31,

1968.)

[34 F.R. 13150, Aug. 14, 1969]

§ 1.230

Los Angeles Convention and Exhibition Center Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $20,500,000 Los Angeles Convention and Exhibition Center Authority Revenue Bonds, Series B, for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Los Angeles Convention and Exhibition Center Authority is a public entity created under the laws of California by an agreement between the City of Los Angeles and the County of Los Angeles. Under this agreement the Authority is authorized to construct and lease to the City a convention and exhibition center and to issue bonds to finance the project. The Authority has issued $18 million Series A bonds to finance the acquisition of the site, demolition, architectural fees, and miscellaneous financing expenses for the Los Angeles Convention and Exhibition Center. It is issuing these bonds (Series B) to finance construction of the center.

(2) Under the lease rental agreement the City has unconditionally promised to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on both the Series A and Series B bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion, in accordance with our ruling of February 5, 1968 (§ 1.205) relating to the Series A bonds, that the $20,500,000 Los Angeles Convention and Exhibition Center Authority Revenue Bonds, Series B, are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, accordingly,

are eligible for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24. (Comptroller's letter dated Dec. 31, 1968).

[34 F.R. 13150, Aug. 14, 1969]

§ 1.231 Kansas State Board of Regents, Stadium Addition Revenue Bonds, Wichita State University

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $750,000 Kansas State Board of Regents, Stadium Addition Revenue Bonds, Wichita State University, for purchase, dealing in, underwriting, and limited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) Wichita State University is under the jurisdiction, control, and management of the Kansas State Board of Regents. The Board is authorized under the laws of Kansas to issue revenue bonds and pledge student fees for the payment of such bonds in order to finance the construction of various buildings including stadia, or additions thereto, constructed by the Board for any institution under its jurisdiction.

(2) The Board is issuing these bonds to finance about half the cost of a stadium addition that will more than double the seating capacity of the present stadium at Wichita State University. Private contributions of $750,000 have already been received to cover the remaining cost. Revenues from a 25¢ per credit hour increase in student fees and from other sources are expected to provide amounts sufficient to meet annual interest and principal payments on these bonds.

(c) Ruling. It is our conclusion that the $750,000 Kansas State Board of Regents, Stadium Addition Revenue Bonds, Wichita State University, are issued by an agency of the State of Kansas for university purposes and are eligible under paragraph Seventh of 12 U.S.C. 24 for purchase, dealing in, underwriting and holding by national banks within the 10 percent limitation with respect to aggregate holdings of obligations issued by the Kansas State Board of Regents. (Comptroller's letter dated Jan. 9, 1969.) [34 F.R. 13150, Aug. 14, 1969]

§ 1.232 San Bernardino Public Safety Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on

the eligibility of the $7,200,000 San Bernardino Public Safety Authority Revenue Bonds, Second Issue, for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The San Bernardino Public Safety Authority is a public entity created under the laws of California by an agreement between the City of San Bernardino and the County of San Bernardino. Under this agreement the Authority is authorized to acquire land, construct public safety buildings (jail, juvenile hall and related facilities) to be leased to and operated by the County and to issue bonds to finance such projects. The Authority has issued $2,830,000 First Issue bonds to finance the construction of a juvenile hall. It is issuing these bonds to finance jail facilities.

(2) The County, as required by its agreement with the City, has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The County which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion, in accordance with our ruling of July 26, 1968 (§ 1.218) relating to the First Issue bonds, that the $7,200,000 San Bernardino Public Safety Authority Revenue Bonds, Second Issue, are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated Feb. 12, 1969.) [34 F.R. 13150, Aug. 14, 1969]

to provide for the acquisition and financing of public building projects for lease to the State. The Authority is issuing its general obligation bonds to finance the acquisition of existing State court and office buildings and the sites thereof at Anchorage and Fairbanks. The State is authorized to lease needed space and specifically these premises.

(2) The State of Alaska which possesses general powers of taxation has promised in the lease rental agreement to pay the Authority, for the right to use and occupy the projects, annual rentals in amounts sufficient to enable the Authority to make the annual principal and interest payments on these bonds and the Authority has pledged these rentals to secure such payments. The bonds of the Authority are thus supported by the faith and credit of the State.

(c) Ruling. It is our conclusion, therefore, that the $5,750,000 Alaska State Housing Authority State Lease Revenue Bonds (Courthouse Acquisition Project) are general obligations of a State or political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated Feb. 25, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.234 San Jose Civic Improvement Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $8,000,000 San Jose City Improvement Authority Lease Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The San Jose Civic Improvement Authority is a public entity created under the laws of California by an agreement between the City of San Jose and the Redevelopment Agency of the City of San Jose. Under this agreement the Authority is authorized to acquire land, to construct and lease public buildings and to issue bonds to finance such projects. It is issuing these bonds to finance the acquisition of land for and the construction by the City of the San Jose Community Theatre. The completed project will be leased to and operated by the City.

(2) The City, as required by its agreement with the Agency, has uncondi

tionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $8,000,000 San Jose Civic Improvement Authority Lease Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated May 28, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.235 Northwest Bergen County Sewer Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $6,000,000 Sewer System Bonds of the Northwest Bergen County Sewer Authority for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Northwest Bergen County Sewer Authority, established under the laws of the State of New Jersey by a resolution of the Board of Chosen Freeholders of the County of Bergen, is a body politic and corporate and a governmental instrumentality of the State. The Authority has power under New Jersey law to finance, construct, acquire, and operate a sewer system within its district. It is issuing these bonds for that purpose.

(2) A number of Bergen County municipalities have as authorized by New Jersey law entered into perpetual service contracts with the Authority. These contracts provide for the payment by the municipalities of service charges calculated, as required by law, to provide such amounts (in addition to other available funds) as will be required by the Authority for payments of principal and interest of any of its bonds or other obligations, operating expenses, maintainence of reserves and to extinguish any existing deficits. These municipalities which possess general powers of taxation have thus committed their faith and credit in support of the bonds of the Authority.

(c) Ruling. It is our conclusion that the $6 million Sewer System Bonds of the Northwest Bergen County Sewer Authority are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, accordingly, are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Acting Comptroller's letter dated May 29, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.236

Los Angeles County-La Mirada Public Facilities Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,375,000 Los Angeles County-La Mirada Public Facilities Authority, Regional Park Facilities Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Los Angeles County-La Mirada Public Facilities Authority is a public entity created under the laws of California by an agreement between the City of La Mirada and the County of Los Angeles. Under this agreement the Authority is authorized to acquire land, construct buildings and facilities for a public library and for a public park, both to be leased to and operated by the County, and to issue bonds to finance such projects. The Authority is issuing these bonds to complete the general development of La Mirada Regional Park including the construction of ball fields, parking lots and picnic areas. It is expected that additional bonds will be issued later to finance the construction of a public library.

(2) The County has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The County which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $1,375,000 Los Angeles County-La Mirada Public Facilities Authority, Regional Park Facilities Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase,