(a) The Board of Supervisors of Orange County, in the
resolution authorizing the issuance of any note or notes, may provide
that the board elects to guarantee payment of the note or notes in
accordance with the following:
   (1) If Orange County elects to participate under this section, it
shall provide notice to the Controller of that election, which notice
shall include a schedule for the repayment of principal and interest
on the notes, and identify a note trustee appointed by Orange County
for the purposes of this section.
   (2) In the event that, for any reason, the funds made available
pursuant to this article for the payment of principal and interest of
the notes will not be sufficient for that purpose at the time
payment on principal, interest, or both, is required as to any one or
more of those notes, Orange County shall so notify the trustee. The
trustee shall immediately communicate that information to the
affected noteholders and to the Controller.
   (3) When the Controller receives notice from the trustee as
described in paragraph (2) that the funds made available pursuant to
this article for the payment of principal and interest of the notes
is not sufficient for that purpose at the time payment on principal,
interest, or both, is required as to any one or more of those notes,
the Controller shall make an apportionment to the trustee in the
amount of that required payment for the purpose of making that
payment. The Controller shall make that payment only from moneys
credited to the Motor Vehicle License Fee Account in the
Transportation Tax Fund to which Orange County is entitled at that
time under Chapter 5 (commencing with Section 11001) of Part 5 of
Division 2 of the Revenue and Taxation Code, and shall thereupon
reduce, by the amount of the payment, the subsequent allocation or
allocations to which Orange County would otherwise be entitled under
that chapter.
   (4) As an alternate to the procedure set forth in paragraphs (2)
and (3), Orange County may specify in the notice provided to the
Controller pursuant to paragraph (1) a schedule of payments to be
made on specified dates to the trustee, and the Controller shall,
subject to the limitation in the second sentence of paragraph (3),
make apportionments to the trustee in the amount of the required
payments on the specified dates.
   (b) This section shall not be construed to obligate the State of
California to make any payment to Orange County from the Motor
Vehicle License Fee Account in the Transportation Tax Fund in any
amount or pursuant to any particular allocation formula, or to make
any other payment to Orange County, including, but not limited to,
any payment in satisfaction of any debt or liability incurred or
guaranteed by Orange County in accordance with this section.