Sec. 10a-186. (Formerly Sec. 10-345). Trust agreement to secure bonds.
Sec. 10a-186. (Formerly Sec. 10-345). Trust agreement to secure bonds. In the
discretion of the authority any bonds issued under the provisions of this chapter may
be secured by a trust agreement by and between the authority and a corporate trustee
or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for
the issuance of such bonds or other instrument of the authority may secure such bonds
by a pledge or assignment of any revenues to be received, any contract or proceeds of
any contract, or any other property, revenues, moneys or funds available to the authority
for such purpose. Any pledge made by the authority pursuant to this section shall be
valid and binding from the time when the pledge is made. The lien of any such pledge
shall be valid and binding as against all parties having claims of any kind in tort, contract
or otherwise against the authority, irrespective of whether the parties have notice of the
claims. Notwithstanding any provision of the Uniform Commercial Code, no instrument
by which such pledge is created need be recorded or filed. Any revenues or other receipts,
funds, moneys, income, contracts or property so pledged and thereafter received by the
authority shall be subject immediately to the lien of the pledge without any physical
delivery thereof or further act and such lien shall have priority over all other liens. Such
trust agreement or other instrument may mortgage, assign or convey any real property
to secure such bonds. Such trust agreement or resolution providing for the issuance of
such bonds may contain such provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not in violation of
law, including particularly such provisions as have hereinabove been specifically authorized to be included in any resolution or resolutions of the authority authorizing
bonds thereof. Any bank or trust company incorporated under the laws of this state
which may act as depositary of the proceeds of bonds or of revenues or other moneys
may furnish such indemnifying bonds or pledge such securities as may be required by
the authority. Any such trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees, and may restrict the individual right of action
by bondholders. In addition to the foregoing, any such trust agreement or resolution
may contain such other provisions as the authority may deem reasonable and proper for
the security of the bondholders. All expenses incurred in carrying out the provisions of
such trust agreement or resolution may be treated as a part of the cost of the operation
of a project.
(February, 1965, P.A. 170, S. 11; 1967, P.A. 368, S. 10; May Sp. Sess. P.A. 04-2, S. 54.)
History: 1967 act deleted "revenue" as descriptive of bonds; Sec. 10-345 transferred to Sec. 10a-186 in 1983 pursuant
to reorganization of higher education system; May Sp. Sess. P.A. 04-2 included other instruments of the authority as
potentially being covered by a trust agreement under section, authorized the pledge or assignment of contracts, other
property, revenue, moneys or funds available to the authority, and added provisions governing pledges, liens, recording
of instruments and the mortgaging or conveying of real property to secure bonds under section, effective May 12, 2004,
and applicable to any pledge, lien or security interest of this state or any political subdivision of this state, in existence on
October 1, 2003, or created after that date.