5-866
|
5-866. Securing principal and interest In connection with issuing bonds authorized by this article and to secure the principal and interest on the bonds, the board by resolution may: 1. Pledge for the payment of principal and interest on the bonds all or part of the revenues and other monies received by the authority and deposited in the general fund or any account or subaccount of the authority. 2. Pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the debt service account or any other account or subaccount as necessary to secure and pay the principal, the interest and any premium on the bonds as they come due. 3. Segregate the debt service account into one or more subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the debt service account or into any subaccount in the debt service account. 4. Establish priorities among bondholders based on criteria adopted by the board. 5. Set aside, regulate and dispose of reserves and sinking accounts. 6. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given. 7. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues available to the board. 8. Provide for the services of trustees, co-trustees, agents, consultants and other specialized services with respect to the bonds. 9. Contract with a financial institution, insurance company or indemnity company to provide additional security for the bonds in the form of a line of credit, letter of credit, insurance policy or other security and pay the costs of this additional security from amounts provided in the bond issue or from other available sources. 10. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds. |