§ 1.185

Salamanca Hospital District Authority (New York) Hospital Construction Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $700,000 Salamanca Hospital District Authority (New York) Hospital Construction Bonds, Series 1967, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Authority, a body corporate and politic, was created in 1958 by an Act of the New York State Legislature to construct, finance, and operate hospital facilities for the city of Salamanca and five neighboring towns. Under a participating agreement entered into by the municipalities and the Authority, each municipality has undertaken to pay an annual charge in the amount of its agreed proportionate share of the funds, in addition to operating revenues, needed by the Authority to meet its operating and maintenance costs, debt service on bonds and notes and other payments. The participating municipalities, which possess general powers of taxation, have thus unconditionally undertaken to pay amounts which together with other available funds will be sufficient to meet the debt service requirements of the bonds.

(2) The hospital was completed in 1963 at a cost of $1,506,262. The U.S. Public Health Service paid $476,262 of this amount. The remainder was financed by the sale of $1,030,000 in temporary notes. In 1966, the temporary notes were redeemed from the proceeds of a $700,000 temporary note and from a $330,000 appropriation from annual charges paid by the participating municipalities and from net revenues from hospital operation. The temporary note is to be redeemed from the proceeds of these bonds.

(c) Ruling. It is our conclusion that the $700,000 Salamanca Hospital District Authority, Hospital Construction Bonds, 1967 Series, 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 June 5, 1967.) [32 F.R. 9062, June 27, 1967]

§ 1.186 Desert Hospital Authority Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $3 million Desert Hospital Revenue Authority Bonds are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Desert Hospital Authority is a public entity created pursuant to the laws of California by an agreement between the Desert Hospital District and the city of Palm Springs to construct and finance additional hospital facilities to be leased to and operated by the District. The Authority is issuing these bonds for that purpose.

(2) The Desert Hospital District is a municipal corporation created pursuant to the laws of California to provide hospital services within a district which includes the city of Palm Springs and a part of Riverside County. Under the law, the District is managed by elected directors and may be financed by assessment on real and personal property within the district.

(3) Under the lease rental agreement between the District and the Authority, the District has unconditionally promised to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on the bonds. The District, which possesses powers of general property taxation, has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion therefore, that the $3 million Desert Hospital 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 in, underwriting, and unlimited holding by national banks. (Comptroller's letter dated June 8, 1967.)

[32 F.R. 9062, June 27, 1967]

underwriting, and unlimited holding by national banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Santa Clara County Building Authority is a public entity created pursuant to the laws of the State of California by an agreement between the county of Santa Clara and the Santa Clara County Flood Control and Water District for the purpose of financing and constructing building projects for the use of the County and the District. The Authority is issuing these bonds to finance the construction of a county service center which will be leased to the County and the District.

(2) Under the lease rental agreement the County and the District have each unconditionally promised to pay, as rentals to the Authority, its proportionate share of an amount sufficient to pay the principal of and interest on the Series A revenue bonds and all costs and expenses of the Authority relating to such bonds and the operations of the County Service Center. The County and the District, each of which possesses general powers of taxation, have thus each committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion, therefore, that the $2,400,000 Santa Clara County Building Authority 1967 Revenue Bonds, Series A, are general obligations of a State or political subdivision thereof under paragraph Seventh of 12 U.S.C. 24, and as such are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks. [32 F.R. 9061, June 27, 1967, as amended at 32 F.R. 11379, Aug. 5, 1967]

§ 1.188

Alaska State Housing Authority State Lease Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $5,020,000 Alaska State Housing Authority State Lease Revenue Bonds are eligible for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Alaska State Housing Authority is a public corporate authority under the laws of the State of Alaska. The Authority is authorized to provide for the acquisition, construction and financing of public building projects and to enter into lease agreements with the State of Alaska for the use of space

in such projects. The Authority is issuing its general obligation bonds to accomplish such financing.

(2) The State of Alaska which posseses general powers of taxation has agreed 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 $5,020,000 Alaska State Housing Authority State Lease Revenue Bonds 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.

[32 F.R. 9809, July 6, 1967] § 1.189

Los Angeles County-West Covina Civic Center Authority, West Covina Administrative and Police Buildings Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $3 million Los Angeles County-West Covina Civic Center Authority, West Covina Administrative and Police Buildings Revenue Bonds are eligible 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-West Covina Civic Center Authority is a public entity created under the laws of the State of California by an agreement between the county of Los Angeles and the city of West Covina. Under this agreement, the Authority is empowered to acquire land and construct and lease public buildings and to issue bonds to finance such projects. The Authority is issuing these bonds for the purpose of constructing public buildings 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 $3 million Los Angeles County-West Covina Civic Center Authority, West Covina Administrative and Police Buildings Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, as such, are eligible for purchase, dealing in, underwriting and unlimited holding by national banks.

[32 F.R. 10432, July 15, 1967]

§ 1.190 Redevelopment Agency of the City of Vallejo Marina Vista Project Area Parking Lease Revenue Bonds. (a) Request. The Comptroller of the Currency has been requested to rule that the $415,000 Marina Vista Project Area Parking Lease Revenue Bonds of the Redevelopment Agency of the City of Vallejo are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Redevelopment Agency of the City of Vallejo is a public body, corporate and politic, created under the Community Redevelopment Law of the State of California. Under the law, the Agency has power to issue bonds for any of its corporate purposes. It is engaged in the redevelopment of the Marina Vista Project Area of the City of Vallejo and has resolved to issue these bonds to finance the acquisition of facilities for free off-street public parking for the benefit of the project area.

(2) The parking facilities acquired will be leased to the City of Vallejo, which has agreed to pay as rental to the Agency an amount sufficient to pay the principal of and interest on the bonds and any expenses of the Agency for insurance, taxes, or assessments relating to the parking facilities. 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 $415,000 Marina Vista Project Area Parking Lease Revenue Bonds of the Redevelopment Agency of the City of Vallejo are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24, and as such are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. [32 F.R. 11944, Aug. 18, 1967]

§ 1.191

Thomaston-Upson County Office Building Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $390,000 Thomaston-Upson County Office Building Authority Revenue Bonds, Series 1967, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The Thomaston-Upson County Office Building Authority is a public corporation and instrumentality of the State of Georgia created by an amendment to the Constitution of the State of Georgia for the purpose of acquiring, constructing, equipping, maintaining and operating self-liquidating projects embracing buildings and facilities for use by the City of Thomaston and for use by such other agencies and political subdivisions of the State of Georgia or the Government of the United States as may contract with the Authority for the use of such facilities. The Authority is issuing these bonds to finance the construction of a county jail and of a new county office building and additions and improvements to the present Upson County Building which will be leased to Upson County. Under the lease rental agreement, the County agrees to levy an annual ad valorem tax on all taxable property within the County at such rates as may be necessary to make the rental payments to enable the Authority to pay the principal of and interest on the bonds as the same shall mature and acknowledges that the obligation to make the payments required shall be deemed to be a general obligation of the County.

(c) Ruling. It is our conclusion, therefore, that the $390,000 ThomastonUpson County Office Building Authority Revenue Bonds, Series 1967, are general obligations of a State or political subdivision thereof under paragraph Seventh of 12 U.S.C. 24, and as such are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks.

[32 F.R. 11944, Aug. 18, 1967]

writing, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The San Carlos Civic Center Authority is a public entity created under the laws of the State of California by an agreement between the City of San Carlos and the County of San Mateo. The Authority is empowered by the agreement to acquire, construct, and lease certain public buildings and to issue bonds to finance such projects. It is issuing these bonds to acquire an existing public library, now owned by the County, which will be leased back to the County, and to construct a civic center complex to house all departments of the City government which will be leased to the City.

(2) Under the agreement, the County has unconditionally promised to pay certain fixed annual rentals to the Authority and the City has unconditionally promised to pay annual rentals to the Authority in an amount, which when added to the rental payments of the County, will be 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 $1,900,000 San Carlos Civic Center Authority 1967 Revenue Bonds, are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, as such, are eligible for purchase, dealing in, underwriting and unlimited holding by national banks.

[32 F.R. 11944, Aug. 18, 1967]

§ 1.193

Los Angeles County-West Covina Civic Center Authority, Citrus District Courthouse Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $1,600,000 Los Angeles County-West Covina Civic Center Authority, Citrus District Courthouse Revenue Bonds are eligible 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-West Covina Civic Center Authority is a public entity created under the laws of the State of California by an agreement between the County of Los

Angeles and the City of West Covina. Under this agreement, the Authority is empowered to acquire land and construct and lease public buildings and to issue bonds to finance such projects. The Authority is issuing these bonds to finance such projects. The Authority is issuing these bonds for the purpose of constructing public buildings which will be leased to the County.

(2) Under the lease-rental agreement the County 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 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, therefore, that the $1,600,000 Los Angeles County-West Covina Civic Center Authority, Citrus District Courthouse Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and, as such, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks.

[32 F.R. 11945, Aug. 18, 1967] § 1.194 City of Downey Community Hospital Authority.

(a) Request. The Comptroller of the Currency has been requested to rule that the $6,250,000 City of Downey Community Hospital Authority Revenue Bonds are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The City of Downey Community Hospital Authority is a public entity organized under the laws of the State of California by an agreement between the City of Downey and the County of Los Angeles. The Authority was created to construct and maintain a general hospital, and is issuing these bonds to finance the project.

(2) Under a lease rental agreement between the City of Downey and the Authority, the City has unconditionally promised to pay annual rentals to the Authority in an amount sufficient to meet the Authority's debt servicing obligation on the bonds. 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 bonds of the City of Downey Community Hospital Authority are general obligations of a political subdivision of a State 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.

[32 F.R. 12850, Sept. 8, 1967]

§ 1.195 Cudahy Civic Center Authority Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $350,000 Cudahy Civic Center Authority Revenue Bonds are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Cudahy Civic Center Authority is a public entity created under the laws of the State of California by an agreement between the county of Los Angeles and the city of Cudahy. Under this agreement, the Authority is empowered to acquire land, construct, and lease public buildings and to issue bonds to finance such projects. The Authority is issuing these bonds for the purpose of constructing a civic center, including a city hall, community center, public library, and related structures and landscaping, 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 $350,000 Cudahy 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, as such, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks.

[32 F.R. 12938, Sept. 12, 1967]

§ 1.196 Campbell County Utilities and Service Authority.

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

the $1,750,000 Water Revenue Bonds, series of 1967, of the Campbell County Utilities and Service Authority are eligible for investment by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Campbell County Utilities and Service Authority is a public body corporate and politic organized and created pursuant to the laws of the Commonwealth of Virginia by the Board of Supervisors of Campbell County, Va. As authorized by Virginia law, the Authority is empowered, inter alia, to acquire, construct, and operate a water system and to issue revenue bonds to obtain funds for such purposes. The Authority is issuing the present bonds for the purpose of acquiring private water systems, making extensions, and constructing new facilities to provide a consolidated water supply and distribution system.

(2) The bonds and the interest thereon will be payable solely from, and secured by a pledge of and lien on, revenues derived by the Authority from its ownership and operation of the consolidated water system. The Authority, however, is obligated to fix rates and collect revenues for the use of the system sufficient, at all times, to pay the principal and interest on the bonds as they become due and to provide reserves therefor.

(3) Revenues derived by the Authority from the operation of this system for the fiscal year ended June 30, 1967, are sufficient to cover current annual debt service 1.7 times. The Authority's projections for the future indicate that revenues sufficient to adequately cover maximum annual debt service will be available at all times. Based upon present revenues as well as projections, the conclusion is warranted that the Authority will be able to perform all that it undertakes to perform in connection with the bonds, including all debt service requirements.

(c) Ruling. It is our conclusion that a national bank may prudently determine in these circumstances that the $1,750,000 Water Revenue Bonds, series of 1967, of the Campbell County Utilities and Service Authority meet the requirements of section 1.5(a) of the Investment Securities Regulation (12 CFR 1.5(a)) and are, therefor, eligible for investment by national banks subject to the 10 percent limitation of paragraph Seventh of 12 U.S.C. 24.

[32 F.R. 13409, Sept. 23, 1967]