the eligibility of the $7,200,000 San Bernardino Public Safety Authority Revenue Bonds, Second Issue, 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 Bernardino Public Safety Authority is a public entity created under the laws of California by an agreement between the City of San Bernardino and the County of San Bernardino. Under this agreement the Authority is authorized to acquire land, construct public safety buildings (jail, juvenile hall and related facilities) to be leased to and operated by the County and to issue bonds to finance such projects. The Authority has issued $2,830,000 First Issue bonds to finance the construction of a juvenile hall. It is issuing these bonds to finance jail facilities.

(2) The County, as required by its agreement with the City, has unconditionally promised in the lease rental agreement 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 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, in accordance with our ruling of July 26, 1968 (§ 1.218) relating to the First Issue bonds, that the $7,200,000 San Bernardino Public Safety Authority Revenue Bonds, Second Issue, 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 Feb. 12, 1969.) [34 F.R. 13150, Aug. 14, 1969]

§ 1.233 Alaska State Housing Authority State Lease Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $5,750,000 State Lease Revenue Bonds (Courthouse Acquisition Project) of the Alaska State Housing Authority for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Alaska State Housing Authority is a public corporate authority under the laws of the State of Alaska. The Authority is authorized

to provide for the acquisition and financing of public building projects for lease to the State. The Authority is issuing its general obligation bonds to finance the acquisition of existing State court and office buildings and the sites thereof at Anchorage and Fairbanks. The State is authorized to lease needed space and specifically these premises.

(2) The State of Alaska which possesses general powers of taxation has promised in the lease rental agreement to pay the Authority, for the right to use and occupy the projects, annual rentals in amounts sufficient to enable the Authority to make the annual principal and interest payments on these bonds and the Authority has pledged these rentals to secure such payments. The bonds of the Authority are thus supported by the faith and credit of the State.

(c) Ruling. It is our conclusion, therefore, that the $5,750,000 Alaska State Housing Authority State Lease Revenue Bonds (Courthouse Acquisition Project) 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 Feb. 25, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.234 San Jose Civic Improvement Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $8,000,000 San Jose City Improvement Authority Lease 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 Jose Civic Improvement Authority is a public entity created under the laws of California by an agreement between the City of San Jose and the Redevelopment Agency of the City of San Jose. Under this agreement the Authority is authorized to acquire land, to construct and lease public buildings and to issue bonds to finance such projects. It is issuing these bonds to finance the acquisition of land for and the construction by the City of the San Jose Community Theatre. The completed project will be leased to and operated by the City.

(2) The City, as required by its agreement with the Agency, has uncondi

tionally promised in the lease rental agreement 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 has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $8,000,000 San Jose Civic Improvement Authority Lease 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 28, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.235

Northwest Bergen County Sewer Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $6,000,000 Sewer System Bonds of the Northwest Bergen County Sewer Authority for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Northwest Bergen County Sewer Authority, established under the laws of the State of New Jersey by a resolution of the Board of Chosen Freeholders of the County of Bergen, is a body politic and corporate and a governmental instrumentality of the State. The Authority has power under New Jersey law to finance, construct, acquire, and operate a sewer system within its district. It is issuing these bonds for that purpose.

(2) A number of Bergen County municipalities have as authorized by New Jersey law entered into perpetual service contracts with the Authority. These contracts provide for the payment by the municipalities of service charges calculated, as required by law, to provide such amounts (in addition to other available funds) as will be required by the Authority for payments of principal and interest of any of its bonds or other obligations, operating expenses, maintainence of reserves and to extinguish any existing deficits. These municipalities which possess general powers of taxation have thus committed their faith and credit in support of the bonds of the Authority.

(c) Ruling. It is our conclusion that the $6 million Sewer System Bonds of the Northwest Bergen County Sewer Authority 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. (Acting Comptroller's letter dated May 29, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.236 Los Angeles County-La Mirada Public Facilities Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,375,000 Los Angeles County-La Mirada Public Facilities Authority, Regional Park Facilities 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-La Mirada Public Facilities Authority is a public entity created under the laws of California by an agreement between the City of La Mirada and the County of Los Angeles. Under this agreement the Authority is authorized to acquire land, construct buildings and facilities for a public library and for a public park, both to be leased to and operated by the County, and to issue bonds to finance such projects. The Authority is issuing these bonds to complete the general development of La Mirada Regional Park including the construction of ball fields, parking lots and picnic areas. It is expected that additional bonds will be issued later to finance the construction of a public library.

(2) The County has unconditionally promised in the lease rental agreement 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 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 $1,375,000 Los Angeles County-La Mirada Public Facilities Authority, Regional Park Facilities 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. (Acting Comptroller's letter dated May 29, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.237

Lake Texarkana Water Supply Corporation.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $8,400,000 Lake Texarkana Water Supply Corporation Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) Lake Texarkana Water Supply Corp. was organized as a nonprofit water supply corporation under a provision of Texas law which authorizes the formation of such a corporation for the purpose of furnishing a water supply service to cities and others. The Corporation is authorized to issue bonds to finance the acquisition of water projects. A city is authorized by law to enter into a contract for the purchase of water systems from such a corporation and to agree to make periodic payments to the corporation in amounts which together with other income of the corporation will be sufficient to pay the principal of and interest on the bonds of the corporation. The law also authorizes a city to provide for the levying of a tax to make such payments.

(2) The Corporation owns facilities for the treatment and transportation of water to the Cities of Texarkana, Texas and Arkansas. Bonds issued to finance the existing facilities are now outstanding in the amount of $2,435,000. The Corporation has entered into a contract with the City of Texarkana, Tex, under which the Corporation will finance and construct extensions and improvements to these facilities and will sell to the City, and the City will purchase, the resulting system which will serve the City, a number of neighboring municipalities and other users. Construction of the project will be assisted by a federal grant of $3 million. The Corporation is issuing these bonds to finance the remaining costs and to refund the outstanding bonds.

(3) In the purchase contract the City has unconditionally promised to make periodic payments to the Corporation in amounts which will be sufficient to pay the principal of and interest on these bonds. The contract also provides that

the periodic payments shall be payable from a continuing, direct annual ad valorem tax on all taxable property in the City sufficient to make such payments in each year. The City has by ordinance levied such a tax. 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 $8,400,000 Lake Texarkana Water Supply Corporation 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. (Acting Comptroller's letter dated June 18, 1969.) [34 F.R. 13151, Aug. 14, 1969]

§ 1.233 Riverside General Hospital Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $2,130,000 Riverside 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 Riverside General Hospital Authority is a public entity created under the laws of California by an agreement between the County of Riverside and the City of Riverside to lease an existing site and hospital from the County and to finance and construct additional hospital facilities which with existing facilities are to be leased to and operated by the County. The Authority is issuing these bonds for that purpose.

(2) The County has unconditionally promised in the lease rental agreement 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 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 $2,130,000 Riverside 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 na

ter dated July 23, 1969.)

[34 F.R. 13152, Aug. 14, 1969]

§ 1.239 Parking Authority, Carlsbad, Calif.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,535,000 (1969) Parking Revenue Bonds of the Carlsbad Parking Authority for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Carlsbad Parking authority is a public body corporate and politic created by the laws of California but authorized to function only upon a finding of need. The Carlsbad City Council has made the appropriate finding and, in accordance with the law, has appointed five residents of the city to be members of and to constitute the governing body of the 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. The Authority is issuing these bonds to finance the acquisition and construction of parking facilities which will be leased to the city.

(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 has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion therefore that the $1,535,000 (1969) Parking Revenue Bonds of the Parking Authority of the City of Carlsbad 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. (Acting Comptroller's letter dated September 25, 1969)

[34 F.R. 15595, Oct. 8, 1969]

Calif.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $150,000 (1969) Parking Revenue Bonds of the Parking Authority of the City of Oakdale 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 Oakdale 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. The Authority is issuing these bonds to finance the acquisition of parking facilities which will be leased to the City.

on

(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 these bonds as well as other necessary expenses. 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 $150,000 (1969) Parking Revenue Bonds of the Parking Authority of the City of Oakdale 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. (Acting Comptroller's letter dated Sept. 25, 1969)

[34 F.R. 15595, Oct. 8, 1969] § 1.241

Ventura County Airport Authority (California).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $385,000 Ventura County Airport 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 Ventura County Airport Authority is a public entity created under the laws of California by an agreement between the City of Oxnard and the County of Ventura. Under this agreement the Authority is authorized to acquire sites for and to acquire, construct and lease public terminal buildings for airport purposes and related facilities, and to issue bonds to finance such projects. The Authority is issuing these bonds to finance the construction of a new airport terminal building and related facilities for the existing Ventura County Airport at Oxnard. The site for the terminal project, located within the City and owned in part by the City and in part by the County, will be leased to the Authority and the completed facilities will be leased to and operated by the County.

(2) The County has unconditionally promised in the lease rental agreement 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 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 $385,000 Ventura County Airport 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. (Acting Comptroller's letter dated Oct. 17, 1969.)

[34 F.R. 20303, Dec. 30, 1969]

§ 1.242 Riverside County Law Library (California).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,490,000 Riverside County Law Library Authority, County Law Library Facilities 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 Riverside County Law Library Authority is a public entity created under the laws of California by an agreement between the County of Riverside and the Board of Law Library Trustees of Riverside County to lease from the County and to finance, con

struct and furnish a building consisting of law library and office facilities to be leased to the County. The Authority is issuing these bonds for that purpose. The County will sublease a part of the building to the Library Trustees. The remainder will be used for County legal offices.

(2) The County has unconditionally promised in the least rental agreement 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 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 $1,490,000 Riverside County Law Library Authority, County Law Library Facilities 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. (Acting Comptroller's letter dated Oct. 17, 1969.)

[34 F.R. 20303, Dec. 30, 1969] § 1.243

Commonwealth of Pennsylvania Tax Anticipation Notes (General Fund).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $200 million Commonwealth of Pennsylvania Tax Anticipation Notes, Second Series of 1969 (General Fund), for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Constitution of the Commonwealth of Pennsylvania authorizes the Governor, State Treasurer, and Auditor General, acting jointly, to incur debt on behalf of the Commonwealth by the issuance of tax anticipation notes having a maturity within the fiscal year of issue and payable exclusively from revenues received in the same fiscal year. The statutes of the Commonwealth authorize these officers to borrow on the credit of current revenues levied, assessed, collectible, and accruing during any current period in amounts up to onefifth of the contemplated receipts from such revenues.

(2) These notes, in accordance with the statute, are secured by and payable from current revenues levied and assessed for revenue purposes of every kind