CA AB1198

Creates the California Credit Enhancement Program within the California School Finance Authority to insure school facility bonds and lower borrowing costs for public schools, particularly charter schools.

Establishes the California Credit Enhancement Account within the California School Finance Authority Fund to hold program funds and allows the authority to deposit collected fees into this account.

Authorizes the authority to leverage its funding so credit insurance provided exceeds the amount of funds on deposit in the account.

Requires the authority to adopt regulations establishing eligibility criteria, default procedures, fee schedules, application processes, and options to ensure continued public school use of facilities in case of default.

Specifies that bond insurance and credit enhancements are payable solely from the California Credit Enhancement Account and do not constitute a debt or liability of the state or pledge its faith and credit.