Page images
PDF
EPUB

(4) The State of Louisiana by making tions of a State or a political subdivision the debt service requirements for these thereof under paragraph Seventh of 12 bonds a charge on its unpledged revenues U.S.C. 24 and, accordingly, are eligible from all sources before making such for purchase, dealing in, underwriting, revenues available for general State pur- and unlimited holding by national banks poses has committed its faith and credit under paragraph Seventh of 12 U.S.C. 24. in support of the bonds.

(33 F.R. 4918, Mar. 23, 1968] (c) Ruling. It is our conclusion, therefore, that the $5 million Public

$ 1.208 Parking Authority, Beverly Hills, Building Bonds, Series DD, of the State

Calif.
Bond and Building Commission, State of
Louisiana are general obligations of a

(a) Request. The Comptroller of the State under paragraph Seventh of 12

Currency has been requested to rule on U.S.C. 24, and, accordingly, are eligible

the eligibility of the $5,500,000 Parking for purchase dealing in underwriting and

Revenue Bonds of the Parking Authority unlimited holding by national banks.

of the City of Beverly Hills, Series 1, for (33 F.R. 4918, Mar. 23, 1968]

purchase, dealing in, underwriting, and

unlimited holding by national banks § 1.207 Duval County Hospital Author- under paragraph Seventh of 12 U.S.C. ity, Fla.

24. (a) Request. The Comptroller of the

(b) Opinion. (1) The Parking AuthorCurrency has been requested to rule on

ity of the City of Beverly Hills is a public the eligibility of the $7 million Duval body corporate and politic created by the County Hospital Authority Hospital

laws of California but authorized to Bonds, Series 1968, for purchase, dealing

function only upon a finding of need. in, underwriting, and unlimited holding

The City Council has made the appropriby national banks under paragraph ate finding and, in accordance with the Seventh of 12 U.S.C. 24.

law, has declared itself to be the parking (b) Opinion. (1) The Duval County

authority. Under the law a parking auHospital Authority, a body politic and thority is authorized to issue revenue corporate, was created in 1963 by an Act bonds to finance public parking facilities of the Florida Legislature for the pur

and may issue such bonds without obpose of acquiring, constructing, and op- taining the approval of the electors of erating hospitals in Duval County. The the city where the bonds are issued to Act authorizes the Authority to issue, finance a project which is to be leased with the approval of qualified freehold- to the city and where the principal of ers, $20 million in bonds to be secured and interest on the bonds are to be by a special tax on all taxable property payable from rentals paid by the City within the county. The required approval

under such lease. was obtained on August 4, 1964. On Jan- (2) The Authority is issuing these uary 28, 1965, the Authority sold $13 bonds to finance the acquisition and conmillion of the bonds thus authorized. It struction of parking facilities which will is now issuing the remaining $7 million. be leased to the City for operation. Under

(2) The Authority, a political subdi- the lease rental agreement the City has vision of the State of Florida possessing unconditionally promised to pay annual powers of general property taxation has rentals to the Authority in amounts unconditionally promised to pay these sufficient to meet annual interest and bonds. As authorized and required by law, principal payments on these bonds. the Authority has secured the repay- While the City expects to meet its lease ment of these bonds by providing for the rental obligations principally from revelevy of a special ad valorem tax suffi- nues derived from its parking operations, cient to pay the principal of and interest its obligation to pay the rentals is a genon the bonds. The proceeds of this tax eral obligation and is not limited to paymust be used exclusively for that purpose. ment from any specific source. The City The Authority has also provided for the which possesses general powers of taxalevy of an ad valorem tax for the main- tion has thus committed its faith and tenance operation, equipping, and ad- credit in support of the bonds. ministration of its facilities.

(c) Ruling. It is our conclusion, there(c) Ruling. It is our conclusion, there- fore, that the $5,500,000 Parking Revenue fore, that the bonds of the Duval County Bonds of the Parking Authority of the Hospital Authority are general obliga- City of Beverly Hills, Series 1, are general obligations of a State or a political in each year in which the bonds remain subdivision thereof under paragraph outstanding an amount which, along Seventh of 12 U.S.C. 24 and, accordingly, with such other monies which may be are eligible for purchase, dealing in, made available for such purposes, will be underwriting and unlimited holding by sufficient to pay all debt service requirenational banks.

ments on the bonds. The County which (33 F.R. 4919, Mar. 23, 1968]

possesses general powers of taxation has

thus committed its faith and credit in $ 1.209 Port Authority of Allegheny

support of the bonds. County, Pa.

(c) Ruling. It is our conclusion, there(a) Request. The Comptroller of the

fore, that the $20 million Port Authority Currency has been requested to rule on of Allegheny County Transit Bonds, the eligibility of the $20 million Port

Series A, are general obligations of a Authority of Allegheny County Transit State or political subdivision thereof Bonds, Series A, for purchase, dealing in, under paragraph Seventh of 12 U.S.C. underwriting, and unlimited holding by 24 and, accordingly, are eligible for purnational banks under paragraph Seventh chase, dealing in, underwriting, and unof 12 U.S.C. 24.

limited holding by national banks. (b) Opinion. (1) The Port Authority [33 F.R. 4919, Mar. 23, 1968) of Allegheny County is a body corporate and politic created by an Act of the Com- § 1.210 Export-Import Bank promissory monwealth of Pennsylvania and orga

notes. nized, pursuant to the Act, by the County (a) Request. The Comptroller of the of Allegheny. Under the Act a port Currency has been requested to rule that authority is authorized to plan, acquire, the short term discount promissory notes construct, improve, maintain, and oper- of the Export-Import Bank of the United ate a mass transportation system within States are eligible for purchase, dealing its designated service area, to borrow in, underwriting and unlimited holding by money, and to issue bonds. The Act also

national banks under paragraph Sevauthorizes the county to make grants or enth of 12 U.S.C. 24. loans from current revenues or the pro- (b) Opinion. The Export-Import Bank ceeds of general obligation bonds to a of the United States (Eximbank) is auport authority to assist in defraying the thorized by law to borrow money in furcosts of any demonstration, test or ex- therance of its statutory functions. In an perimental projects, and the cost of

opinion of September 30, 1966, addressed studies in preparation of a plan of inte- to the Secretary of the Treasury the Atgrated operation and for the operation, torney General of the United States ruled maintenance and debt service of any that Eximbank's guaranties of particifacility and to enter into long term pation certificates and the other conagreements providing for the payment tractual liabilities it is authorized to inof such grants.

cur under its governing statute are valid (2) The Authority has acquired the general obligations of the United States. properties of a number of transportation It is our conclusion, therefore, that systems in its area and has consolidated promissory notes of the Export-Import and integrated these properties into a Bank of the United States are obligations single mass transportation system. It of the United States and, accordingly, has financed these acquisitions as well are eligible for purchase, dealing in, unas the cost of demonstration, test or ex- derwriting and unlimited holding by naperimental projects by short term

tional banks under paragraph Seventh borrowings in the principal amount of of 12 U.S.C. 24. $45 million. These borrowings are evi- (33 F.R. 5293, Apr. 3, 1968] denced by notes which mature on April 15, 1968. It proposes to pay the maturing

$ 1.211 County of Palm Beach, Fla., notes by the issuance of new notes in

Courthouse and Jail Certificates of the amount of $25 million and by pay

Indebtedness. ment of cash in the amount of $20 million (a) Request. The Comptroller of the plus accrued interest. The cash payment Currency has been requested to rule on is to be derived principally from the the eligibility of the $7 million Courtissuance and sale of these bonds.

house and Jail Certificates of Indebted(3) The County has entered into a long ness of the County of Palm Beach, Fla., term agreement to pay to the Authority for purchase, dealing in, underwriting and unlimited holding by national banks county of Los Angeles to finance and under paragraph Seventh of 12 U.S.C. 24. construct a general hospital to be leased

(b) Opinion. (1) The proceeds from to and operated by the county. The the sale of the Certificates will be used Authority is issuing these bonds for that for the construction of additions, ex- purpose. tensions and improvements to the Court- (2) Under the lease rental agreement house and Jail facilities (including new the County has unconditionally promised branch facilities) at various locations to pay annual rentals to the Authority within the County. A board of ccunty in an amount sufficient to meet annual commissioners is specifically authorized principal and interest payments on the by Florida statutes to determine the bonds. The County which possesses gennecessity for such construction and to eral powers of taxation has thus comprovide for the payment of the cost of mitted its faith and credit in support of construction by the levying of an ad- the bonds. ditional ad valorem tax of up to 5 mills (c) Ruling. It is our conclusion that for a period of up to 30 years to be the $22,500,000 Los Angeles County assessed at the same time and in the Southeast General Hospital Authority same manner as other state and county Revenue Bonds are general obligations of taxes.

a State or a political subdivision thereof (2) The Board of County Commis- under paragraph Seventh of 12 U.S.C. 24 sioners of the County of Palm Beach has and accordingly are eligible for purprovided for and secured the payment of chase, dealing in, underwriting and the Certificates by levying the author- unlimited holding by national banks. ized tax in an amount sufficient to pay (Comptroller's letter dated May 7, 1968.) principal, interest, and other debt service (33 F.R. 9596, July 2, 1968] requirements and by pledging the proceeds of the levy for such purposes. On

$ 1.213 Los Angeles County-San Dimas

Civic Center Authority. the basis of current taxable assessed valuation a tax rate of 0.25 mills will be (a) Request. The Comptroller of the sufficient to meet these requirements.

Currency has been requested to rule on The 5 mill limitation is, therefore, with

the eligibility of the $1,600,000 LOS out substance.

Angeles County-San Dimas Civic Center (c) Ruling. It is our conclusion that Authority Building Revenue Bonds for the $7 million Courthouse and Jail Cer- purchase, dealing in, underwriting and tificates of Indebtedness of the county of

unlimited holding by national banks Palm Beach, Fla., are general obligations

under paragraph Seventh of 12 U.S.C. 24. of a State or a political subdivision (b) Opinion. (1) The Los Angeles thereof under paragraph Seventh of 12

County-San Dimas Civic Center AuthorU.S.C. 24 and are eligible for purchase, ity is a public entity created under the dealing in, underwriting and unlimited laws of California by an agreement beholding by national banks. (Comptrol- tween the City of San Dimas and the ler's letter dated May 1, 1968.)

County of Los Angeles. Under this agree[33 F.R. 9596, July 2, 1968]

ment the Authority is authorized to

acquire land, construct and lease public $ 1.212 Los Angeles County Southeast

buildings and to issue bonds to finance General Hospital Authority.

such projects. The Authority is issuing (a) Request. The Comptroller of the these bonds for the purpose of conCurrency has been requested to rule on structing a city hall and a community the eligibility of the $22,500,000 Los building which will be leased to the City. Angeles County Southeast General Hos- This construction represents the first pital Authority Revenue Bonds for pur- stage of a planned Civic Center developchase, dealing in, underwriting and ment. A later stage is expected to include unlimited holding by national banks a regional library building to be leased under paragraph Seventh of 12 U.S.C. 24. to the County.

(b) Opinion. (1) The Los Angeles (2) Under the lease rental agreement County Southeast General Hospital Au- the City has unconditionally promised thority is a public entity created under to pay annual rentals to the Authority the laws of California by an agreement in an amount sufficient to meet annual between the city of Los Angeles and the interest and principal payments on these bonds as well as other necessary ex- (c) Ruling. It is our conclusion that penses. The City, which possesses general bonds of the Virginia Public School powers of taxation and also receives sub- Authority are general obligations of a stantial revenues from statutory alloca- State or political subdivision thereof tions of State and county taxes, has thus under paragraph Seventh of 12 U.S.C. 24 committed its faith and credit in support and accordingly are eligible for purchase, of the bonds.

dealing in, underwriting, and unlimited (c) Ruling. It is our conclusion that holding by national banks. (Compthe $1,600,000 Los Angeles County-San troller's letter dated June 3, 1968.) Dimas Civic Center Authority Building [33 F.R. 9597, July 2, 1968] Revenue Bonds are general obligations of

§ 1.215 San Diego City-County Camp a State or political subdivision thereof

Authority. under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, (a) Request. The Comptroller of the dealing in, underwriting, and unlimited Currency has been requested to rule on holding by national banks. (Comptrol- the eligibility of the $1,740,000 San Diego ler's letter dated May 20, 1968.)

City-County Camp Authority Revenue [33 F.R. 9597, July 2, 1968]

Bonds for purchase, dealing in, under

writing, and unlimited holding by $ 1.214 Virginia Public School Author

national banks under paragraph Seventh ity.

of 12 U.S.C. 24. (a) Request. The Comptroller of the (b) Opinion. (1) The San Diego CityCurrency has been requested to consider County Camp Authority is a public whether the ruling of June 14, 1963 entity created under the laws of Cali(§ 1.124) that bonds of the Virginia fornia by an agreement between the City Public School Authority are eligible for of San Diego and the County of San purchase, dealing in, underwriting and Diego. Under this agreement the Auunlimited holding by national banks is thority is authorized to acquire, construct now applicable with respect to outstand- and lease park and recreation camp faing and future bond issues of the Au- cilities, to acquire sites for such facilities, thority.

and to finance such projects. (b) Opinion. (1) The Virginia Public (2) The City and County operate an School Authority was created by an Act outdoor educational program for school of the General Assembly of Virginia as

children throughout the academic year a public body corporate, political sub- at several camps located on State park division, and an agency and instrumen- land. It is proposed to improve and extality of the Commonwealth of Virginia. pand the camp facilities used in this Its purpose is to facilitate the construc- program through the construction of tion of public schools through the pur- dormitories, educational and service chase of local school bonds with the buildings, recreational facilities, site improceeds from the sale of its own bonds provements and utilities services and the which in turn are secured by all of the remodeling of some existing facilities, resources of the Authority. These re- In order to carry out this project the sources now include purchased bonds in State has leased the camp sites to the the amount of $20,500,000 and a portfolio Authority and the Authority is issuing of local school notes having a value in these bonds. The completed facilities excess of $60 million transferred to the will be leased to the County for operaAuthority as a reserve fund. The local tion under an operating agreement beschool bonds and notes are general obli- tween the County and the City. gations of Virginia local governments (3) Under the lease rental agreement possessing powers of general property the County has unconditionally promised taxation.

to pay annual rentals to the Authority in (2) The bonds of the Authority are an amount sufficient to meet annual insupported by general obligations of polit- terest and principal payments on these ical subdivisions of the Commonwealth of bonds and to furnish the Authority with Virginia to make payments in annual necessary working capital and reserves. amounts which assure that there will be The County which possesses general funds sufficient to provide for all pay- powers of taxation has thus committed ments required in connection with the its faith and credit in support of the bonds.

bonds.

(c) Ruling. It is our conclusion that (Comptroller's letter dated June 21 the $1,740,000 San Diego City-County 1968.) Camp Authority Revenue Bonds are gen

(33 F.R. 9598, July 2, 1968] eral obligations of a State or a political subdivision thereof under paragraph

§ 1.217 Fountain Valley Improvement Seventh of 12 U.S.C. 24 and accordingly

Authority Revenue Bonds. are eligible for purchase, dealing in, un- (a) Request: The Comptroller of the derwriting and unlimited holding by Currency has been requested to rule on national banks. (Comptroller's letter the eligibility of the $1,050,000 Fountain dated June 7, 1968.)

Valley Improvement Authority Revenue (33 F.R. 9597, July 2, 1968]

Bonds, for purchase, dealing in, under

writing, and unlimited holding by na§ 1.216 Hillsborough County Aviation

tional banks under paragraph Seventh of Authority, Florida (Post Office Fa

12 U.S.C. 24. cility).

(b) Opinion: (1) The Fountain Valley (a) Request. The Comptroller of the Improvement Authority is a public enCurrency has been requested to rule on tity created under the laws of California the eligibility of the $5,770,000 Hills- by an agreement between the City of borough County Aviation Authority, Fountain Valley and the County of Florida, Special Purpose Bonds (Post Orange. Under this agreement the AuOffice Facility) for purchase, dealing in, thority is authorized to acquire land, underwriting and unlimited holding by construct and lease public buildings and national banks under paragraph Seventh to issue bonds to finance such projects. of 12 U.S.C. 24.

The Authority is issuing these bonds for (b) Opinion (1) The Hillsborough the purpose of financing the construction County Aviation Authority, a body poli- of buildings for the police, for public tic and corporate created by an Act of meetings and recreation, for the storage the Florida legislature for the purpose of of city and county vehicles and equipoperating airports and aviation facilities ment, an addition to an existing library now operates the Tampa International and related facilities. The Authority will Airport. The Authority is issuing these lease the entire project to the City and bonds to finance the construction at the the City is expected to sublease the airport of a regional postal facility to be library facility to the County. leased to the Post Office Department.

(2) Under the lease rental agreement (2) Under the lease rental agreement

the City has unconditionally promised the United States of America acting to pay annual rentals to the Authority through the Post Office Department has

in an amount sufficient to meet annual unconditionally promised to pay annual interest and principal payments on ühese rentals to the Authority in an amount

bonds as well as other necessary exsufficient to meet annual interest and

penses. The City, which possesses general principal payments on these bonds as powers of taxation and also receives subwell as certain other necessary expenses.

stantial revenues from statutory allocaThe agreement recites that funds for

tions of State and county taxes has, thus the facility are to be provided by these

committed its faith and credit in support bonds, that the rentals are for the pur

of the bonds. pose of retiring the bonds and that the

(c) It is our conclusion that the Government therefore agrees to guaran

$1,050,000 Fountain Valley Improvement tee the rental payments until the bonds

Authority Revenue Bonds are general are retired.

obligations of a State or a political (c) Ruling. It is our conclusion that

subdivision thereof under paragraph the Hillsborough County Aviation `Au

Seventh of 12 U.S.C. 24 and accordingly thority, Florida, Special Purpose Bonds

are eligible for purchase, dealing in, un(Post Office Facility) are eligible for

derwriting, and unlimited holding by purchase, dealing in, underwriting and

national banks. (Comptroller's letter unlimited holding by national banks un

dated June 21, 1968.) der paragraph Seventh of 12 U.S.C. 24.

[33 F.R. 9598, July 2, 1968]

« PreviousContinue »