16.104 - LOAN AGREEMENTS.
16.104 LOAN AGREEMENTS.
1. The authority may enter into loan agreements with one or more
borrowers to finance in whole or in part the acquisition of one or
more projects by construction or purchase. The repayment obligation
of the borrower or borrowers may be unsecured, secured by a mortgage
or security agreement, or secured by other security as the authority
deems advisable. The repayment obligation may be evidenced by one or
more notes of the borrower or borrowers. The loan agreements may
contain terms and conditions the authority deems advisable.
2. The authority may issue its bonds and notes for the projects
set forth in section 16.102 and may enter into one or more lending
agreements or purchase agreements with one or more bondholders or
noteholders containing the terms and conditions of the repayment of
and the security for the bonds or notes. The authority and the
bondholders or noteholders or a trustee or agent designated by the
authority may enter into agreements to provide for any of the
following:
a. That the proceeds of the bonds and notes and the
investments of the proceeds may be received, held, and disbursed by
the bondholders or noteholders, or by a trustee or agent designated
by the authority.
b. That the bondholders or noteholders or a trustee or agent
designated by the authority may collect, invest, and apply the
amounts payable under the loan agreements or any other security
instruments securing the debt obligations of the borrower or
borrowers.
c. That the bondholders or noteholders may enforce the
remedies provided in the loan agreements or security instruments on
their own behalf without the appointment or designation of a trustee.
If there is a default in the principal of or interest on the bonds or
notes or in the performance of any agreement contained in the loan
agreements or security instruments, the payment or performance may be
enforced in accordance with the loan agreement or security
instrument.
d. That if there is a default in the payment of the principal
or interest on a mortgage or security instrument or if there is a
violation of an agreement contained in the mortgage or security
instrument, the mortgage or security instrument may be foreclosed or
enforced. Collateral may be sold under proceedings or actions
permitted by law. A trustee under the mortgage or security agreement
or the holder of any bonds or notes secured by the mortgage or
security agreement may become a purchaser if the trustee or holder is
the highest bidder.
e. Other terms and conditions as deemed necessary or
appropriate by the authority. Section History: Recent Form
86 Acts, ch 1212, § 5
C87, § 220.104
87 Acts, ch 115, § 33
C93, § 16.104
Referred to in § 16.106