Security for California Health Facilities Financing Authority's bonds, issued for the Sacramento Medical Foundation, is based on California's Health Facilities Construction Loan Insurance program. In the event of a default, the state can continue to make regularly scheduled debt service payments or issue debentures to the trustee for the benefit of the bond owners having a total face value of and bearing interest at the rate on the respective bonds they replace. Thus the ultimate backing for this issue is the credit of California, and on that basis the bonds are rated 'A+.' The Sacramento Medical Foundation is a nonprofit public benefit corporation that operates three full-service blood centers (blood banks) in Sacramento, Chico, and Redding, Calif. The corporation also
