PACE financing is a relatively new financing structure that poses new legal issues. In cases where a local agency needs to eliminate legal questions about the validity of a proposed financing program, California law permits the local agency to bring an action in court to validate the program. The local agency must file a complaint in the local court for validation proceedings. Following the local agency’s filing, the court issues an order to publish a summons. The published summons provides all interested persons with notice of the validation action. The validation process includes a 30-day period for an interested person to file an answer challenging the validation action. Even if no answer is filed, the court holds a hearing and determines whether the local agency is entitled to a judgment validating its proposed financing program. If the court validates the proposed financing program and the time to appeal passes, the local agency’s counsel may rely on the court’s judgment to provide an unqualified opinion regarding the validity of the financing program. The validation process could take as little as four months for an uncontested action or could take years for a contested action.
The validating judgment will be helpful to SCEIP in the event that SCEIP bonds are marketed to the public.
Description of Document
|Resolution authorizing validation proceedings||Resolution authorizing judicial validation proceedings relating to the issuance and sale of the contractual assessment revenue bonds.|
|Civil Case Cover Sheet||Court prepared cover sheet|
|Complaint||Complaint to determine validity of the Program.|
|Summons||Validation Action Summons|
|Notice of Assignment||Assignment of validation case to the judge and notice of case management conference|
|Trial Brief||Validation Trial Brief|
|Proposed Judgment||Proposed validation judgment|
The information contained within these materials is offered only for general informational purposes. It does not constitute either general or specific legal advice and should not be substituted for legal, financial or other professional advice. These materials were created for an energy independence program individualized for the County of Sonoma and may not be suitable for all public agencies. These materials are not promised or guaranteed to be current, complete, or up-to-date. Different factual situations and evolving case law may require substantial modifications to these materials. As such, the authors make no representations or warranties with respect to the accuracy or completeness of the contents of these materials.