California Government Code 53595.15 – (a) A pledge by a local agency of tax increment revenues …
(a) A pledge by a local agency of tax increment revenues received pursuant to a tax increment agreement shall be valid and binding upon the local agency from the time the pledge is made for the benefit of pledgees and successors in interest thereof. The tax increment revenues pledged by the local agency or its assignees shall immediately, upon receipt by the local agency from the redevelopment agency, be subject to the lien of the pledge without physical delivery or further act.
(b) Except as otherwise specified in this section, the lien of the pledge shall be valid and binding against all parties, irrespective of whether the parties have notice of the claim. The indenture by which the pledge is created need not be recorded. The pledge shall remain a valid and binding pledge until the debt instruments secured by the pledge are no longer outstanding.
Terms Used In California Government Code 53595.15
- Debt instruments: means bonds, notes, certificates of participation, or other evidences of indebtedness issued by a local agency pursuant to this article. See California Government Code 53595
- Indenture: means the instrument providing the terms and conditions for the issuance of the debt instruments, and may be a resolution, order, agreement, or other instrument. See California Government Code 53595
- Lien: A claim against real or personal property in satisfaction of a debt.
- Local agency: means any city, county, city and county, district, including, but not limited to, a school district or other public entity authorized to enter into a tax increment agreement. See California Government Code 53595
- Person: includes any person, firm, association, organization, partnership, limited liability company, business trust, corporation, or company. See California Government Code 17
- Redevelopment agency: means a redevelopment agency established pursuant to Part 1 (commencing with Section 33000) of Division 24 of . See California Government Code 53595
- Tax increment: means that portion of tax revenues allocated to a redevelopment agency pursuant to subdivision (b) of §. See California Government Code 53595
- Tax increment agreement: means any agreement between a local agency and a redevelopment agency which allocates tax increment to the local agency pursuant to §. See California Government Code 53595
- Tax increment revenues: means tax increment received or receivable by a local agency pursuant to a tax increment agreement. See California Government Code 53595
(c) Nothing in this article affects the rights, duties, or obligations of a redevelopment agency with regard to the allocation of tax increment by a redevelopment agency to a local agency pursuant to a tax increment agreement, the terms of which shall exclusively govern the rights, duties, and obligations of the redevelopment agency. This article does not vest in any pledgee, holder of debt instruments, successor in interest thereof, or any person, other than the local agency, any lien, right, claim, interest, or cause of action against a redevelopment agency for tax increment revenues held by, or to be received by, the redevelopment agency.
(Added by Stats. 1993, Ch. 902, Sec. 1. Effective October 8, 1993.)