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(4) The State of Louisiana by making the debt service requirements for these bonds a charge on its unpledged revenues from all sources before making such revenues available for general State purposes has committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion, therefore, that the $5 million Public Building Bonds, Series DD, of the State Bond and Building Commission, State of Louisiana are general obligations 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. [33 F.R. 4918, Mar. 23, 1968]

§ 1.207 Duval County Hospital Authority, Fla.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $7 million Duval County Hospital Authority Hospital Bonds, Series 1968, for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Duval County Hospital Authority, a body politic and corporate, was created in 1963 by an Act of the Florida Legislature for the purpose of acquiring, constructing, and operating hospitals in Duval County. The Act authorizes the Authority to issue, with the approval of qualified freeholders, $20 million in bonds to be secured by a special tax on all taxable property within the county. The required approval was obtained on August 4, 1964. On January 28, 1965, the Authority sold $13 million of the bonds thus authorized. It is now issuing the remaining $7 million.

(2) The Authority, a political subdivision of the State of Florida possessing powers of general property taxation has unconditionally promised to pay these bonds. As authorized and required by law, the Authority has secured the repayment of these bonds by providing for the levy of a special ad valorem tax sufficient to pay the principal of and interest on the bonds. The proceeds of this tax must be used exclusively for that purpose. The Authority has also provided for the levy of an ad valorem tax for the maintenance operation, equipping, and administration of its facilities.

(c) Ruling. It is our conclusion, therefore, that the bonds of the Duval County Hospital Authority are general obliga

tions 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. [33 F.R. 4918, Mar. 23, 1968]

§ 1.208 Parking Authority, Beverly Hills, Calif.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $5,500,000 Parking Revenue Bonds of the Parking Authority of the City of Beverly Hills, Series 1, 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 Beverly Hills 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.

(2) The Authority is issuing these bonds to finance the acquisition and construction of parking facilities which will be leased to the City for operation. Under the lease rental agreement the City has unconditionally promised to pay annual rentals to the Authority in amounts sufficient to meet annual interest and principal payments on these bonds. While the City expects to meet its lease rental obligations principally from revenues derived from its parking operations, its obligation to pay the rentals is a general obligation and is not limited to payment from any specific source. 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 $5,500,000 Parking Revenue Bonds of the Parking Authority of the City of Beverly Hills, Series 1, are gen

eral 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.

[33 F.R. 4919, Mar. 23, 1968]

§ 1.209 Port Authority of Allegheny County, Pa.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $20 million Port Authority of Allegheny County Transit Bonds, Series A, for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Port Authority of Allegheny County is a body corporate and politic created by an Act of the Commonwealth of Pennsylvania and organized, pursuant to the Act, by the County of Allegheny. Under the Act a port authority is authorized to plan, acquire, construct, improve, maintain, and operate a mass transportation system within its designated service area, to borrow money, and to issue bonds. The Act also authorizes the county to make grants or loans from current revenues or the proceeds of general obligation bonds to a port authority to assist in defraying the costs of any demonstration, test or experimental projects, and the cost of studies in preparation of a plan of integrated operation and for the operation, maintenance and debt service of any facility and to enter into long term agreements providing for the payment of such grants.

(2) The Authority has acquired the properties of a number of transportation systems in its area and has consolidated and integrated these properties into a single mass transportation system. It has financed these acquisitions as well as the cost of demonstration, test or experimental projects by short term borrowings in the principal amount of $45 million. These borrowings are evidenced by notes which mature on April 15, 1968. It proposes to pay the maturing notes by the issuance of new notes in the amount of $25 million and by payment of cash in the amount of $20 million plus accrued interest. The cash payment is to be derived principally from the issuance and sale of these bonds.

(3) The County has entered into a long term agreement to pay to the Authority

in each year in which the bonds remain outstanding an amount which, along with such other monies which may be made available for such purposes, will be sufficient to pay all debt service requirements on the bonds. 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 $20 million Port Authority of Allegheny County Transit Bonds, Series A, 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. [33 F.R. 4919, Mar. 23, 1968]

§ 1.210 Export-Import Bank promissory

notes.

(a) Request. The Comptroller of the Currency has been requested to rule that the short term discount promissory notes of the Export-Import Bank of the United States are eligible for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The Export-Import Bank of the United States (Eximbank) is authorized by law to borrow money in furtherance of its statutory functions. In an opinion of September 30, 1966, addressed to the Secretary of the Treasury the Attorney General of the United States ruled that Eximbank's guaranties of participation certificates and the other contractual liabilities it is authorized to incur under its governing statute are valid general obligations of the United States.

It is our conclusion, therefore, that promissory notes of the Export-Import Bank 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.

[33 F.R. 5293, Apr. 3, 1968]

§ 1.211 County of Palm Beach, Fla., Courthouse and Jail Certificates of Indebtedness.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $7 million Courthouse and Jail Certificates of Indebtedness of the County of Palm Beach, Fla., for purchase, dealing in, underwriting

and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24. (b) Opinion. (1) The proceeds from the sale of the Certificates will be used for the construction of additions, extensions and improvements to the Courthouse and Jail facilities (including new branch facilities) at various locations within the County. A board of county commissioners is specifically authorized by Florida statutes to determine the necessity for such construction and to provide for the payment of the cost of construction by the levying of an additional ad valorem tax of up to 5 mills for a period of up to 30 years to be assessed at the same time and in the same manner as other state and county taxes.

(2) The Board of County Commissioners of the County of Palm Beach has provided for and secured the payment of the Certificates by levying the authorized tax in an amount sufficient to pay principal, interest, and other debt service requirements and by pledging the proceeds of the levy for such purposes. On the basis of current taxable assessed valuation a tax rate of 0.25 mills will be sufficient to meet these requirements. The 5 mill limitation is, therefore, without substance.

(c) Ruling. It is our conclusion that the $7 million Courthouse and Jail Certificates of Indebtedness of the county of Palm Beach, Fla., are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated May 1, 1968.)

[33 F.R. 9596, July 2, 1968]

§ 1.212 Los Angeles County Southeast General Hospital Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $22,500,000 Los Angeles County Southeast General Hospital 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 Los Angeles County Southeast General Hospital 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 to finance and construct a general hospital to be leased to and operated by the county. The Authority is issuing these bonds for that purpose.

(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 principal and interest payments on the bonds. 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 $22,500,000 Los Angeles County Southeast General 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, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated May 7, 1968.) [33 F.R. 9596, July 2, 1968]

§ 1.213 Los Angeles County-San Dimas Civic Center Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,600,000 Los Angeles County-San Dimas Civic Center Authority Building 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-San Dimas Civic Center Authority is a public entity created under the laws of California by an agreement between the City of San Dimas and the County of Los Angeles. Under this agreement the Authority is authorized 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 city hall and a community building which will be leased to the City. This construction represents the first stage of a planned Civic Center development. A later stage is expected to include a regional library building to be leased to the County.

(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 and also receives substantial revenues from statutory allocations of State and county taxes, has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $1,600,000 Los Angeles County-San Dimas Civic Center Authority Building 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. (Comptroller's letter dated May 20, 1968.)

[33 F.R. 9597, July 2, 1968]

§ 1.214 Virginia Public School Authority.

(a) Request. The Comptroller of the Currency has been requested to consider whether the ruling of June 14, 1963 (§ 1.124) that bonds of the Virginia Public School Authority are eligible for purchase, dealing in, underwriting and unlimited holding by national banks is now applicable with respect to outstanding and future bond issues of the Authority.

(b) Opinion. (1) The Virginia Public School Authority was created by an Act of the General Assembly of Virginia as a public body corporate, political subdivision, and an agency and instrumentality of the Commonwealth of Virginia. Its purpose is to facilitate the construction of public schools through the purchase of local school bonds with the proceeds from the sale of its own bonds which in turn are secured by all of the resources of the Authority. These resources now include purchased bonds in the amount of $20,500,000 and a portfolio of local school notes having a value in excess of $60 million transferred to the Authority as a reserve fund. The local school bonds and notes are general obligations of Virginia local governments possessing powers of general property taxation.

(2) The bonds of the Authority are supported by general obligations of political subdivisions of the Commonwealth of Virginia to make payments in annual amounts which assure that there will be funds sufficient to provide for all payments required in connection with the bonds.

(c) Ruling. It is our conclusion that bonds of the Virginia Public School Authority 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 June 3, 1968.) [33 F.R. 9597, July 2, 1968]

§ 1.215 San Diego City-County Camp Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,740,000 San Diego City-County Camp 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 San Diego CityCounty Camp Authority is a public entity created under the laws of California by an agreement between the City of San Diego and the County of San Diego. Under this agreement the Authority is authorized to acquire, construct and lease park and recreation camp facilities, to acquire sites for such facilities, and to finance such projects.

(2) The City and County operate an outdoor educational program for school children throughout the academic year at several camps located on State park land. It is proposed to improve and expand the camp facilities used in this program through the construction of dormitories, educational and service buildings, recreational facilities, site improvements and utilities services and the remodeling of some existing facilities. In order to carry out this project the State has leased the camp sites to the Authority and the Authority is issuing these bonds. The completed facilities will be leased to the County for operation under an operating agreement between the County and the City.

(3) 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 and to furnish the Authority with necessary working capital and reserves. 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 $1,740,000 San Diego City-County Camp 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 June 7, 1968.)

[33 F.R. 9597, July 2, 1968]

§ 1.216 Hillsborough County Aviation Authority, Florida (Post Office Facility).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $5,770,000 Hillsborough County Aviation Authority, Florida, Special Purpose Bonds (Post Office Facility) for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Hillsborough County Aviation Authority, a body politic and corporate created by an Act of the Florida legislature for the purpose of operating airports and aviation facilities now operates the Tampa International Airport. The Authority is issuing these bonds to finance the construction at the airport of a regional postal facility to be leased to the Post Office Department.

(2) Under the lease rental agreement the United States of America acting through the Post Office Department 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 certain other necessary expenses. The agreement recites that funds for the facility are to be provided by these bonds, that the rentals are for the purpose of retiring the bonds and that the Government therefore agrees to guarantee the rental payments until the bonds are retired.

(c) Ruling. It is our conclusion that the Hillsborough County Aviation Authority, Florida, Special Purpose Bonds (Post Office Facility) 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 June 21

1968.)

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

§ 1.217 Fountain Valley Improvement Authority Revenue Bonds.

(a) Request: The Comptroller of the Currency has been requested to rule on the eligibility of the $1,050,000 Fountain Valley Improvement 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 Fountain Valley Improvement Authority is a public entity created under the laws of California by an agreement between the City of Fountain Valley and the County of Orange. Under this agreement the Authority is authorized 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 financing the construction of buildings for the police, for public meetings and recreation, for the storage of city and county vehicles and equipment, an addition to an existing library and related facilities. The Authority will lease the entire project to the City and the City is expected to sublease the library facility to the County.

(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 and also receives substantial revenues from statutory allocations of State and county taxes has, thus committed its faith and credit in support of the bonds.

(c) It is our conclusion that the $1,050,000 Fountain Valley Improvement 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 June 21, 1968.)

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

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