Sec. 7-233h. Trust indenture.
Sec. 7-233h. Trust indenture. In the discretion of the cooperative utility board
any bonds issued under the provisions of this chapter may be secured by a trust indenture
by way of conveyance, deed of trust or mortgage of any project or any other property
of the municipal cooperative, whether or not financed in whole or in part from the
proceeds of such bonds, or by a trust agreement by and between the municipal cooperative and a corporate trustee, which may be any trust company or bank having the powers
of a trust company within or without the state or by both such conveyance, deed of trust
or mortgage and indenture or trust agreement. Such trust indenture or agreement may
pledge or assign any or all fees, rents and other charges to be received or proceeds of
any contract or contracts pledged, and may convey or mortgage any property of the
municipal cooperative. Such trust indenture or agreement 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 municipal cooperative authorizing the issue of bonds. Any bank or trust
company incorporated under the laws of the state may act as depository of the proceeds
of such bonds or of revenues or other moneys and may furnish such indemnifying bonds
or pledge such securities as may be required by the municipal cooperative. Such trust
indenture may set forth the rights and remedies of the bondholders and of the trustee,
and may restrict the individual right of action by bondholders. In addition to the foregoing, such trust indenture or agreement may contain such other provisions as the municipal cooperative may deem reasonable and proper for the security of the bondholders.
All expenses incurred in carrying out the provisions of such trust indenture or agreement
may be treated as a part of the cost of a project.
(P.A. 75-634, S. 8, 24.)