Section 10-328 - Sinking fund - Established.
§ 10-328. Sinking fund - Established.
(a) Set-aside required.-
(1) The Authority shall set aside a sufficient amount of the revenues derived from a project in a sinking fund or other similar fund at regular intervals to the extent required in the trust agreement.
(2) The sinking fund is pledged to pay:
(i) the principal of and the interest on the bonds as they become due; and
(ii) the redemption or purchase price of bonds retired by call or purchase as specified in the trust agreement.
(3) To the extent provided in the trust agreement, the Authority may exclude from the amount to be deposited in the sinking fund the revenues that may be necessary:
(i) to pay for project maintenance, repair, and operation;
(ii) for reserves; and
(iii) for improvements to the project.
(b) Duration and effect of pledge.-
(1) The pledge of revenues under subsection (a) of this section is valid and binding from the time the pledge is made.
(2) (i) The rates, rents, charges, fees, and other revenue or money that the Authority pledges and receives are subject immediately to the lien of the pledge.
(ii) Neither physical delivery of the rates, rents, charges, fees, and other revenue or money nor any other act is required to validate the lien.
(3) The lien of the pledge is valid and binding against each party with a claim against the Authority in tort, contract, or otherwise, regardless of whether the party has notice of the lien.
(c) Recordation of pledge.- The trust agreement and any other agreement or lease creating a pledge under this section need not be filed or recorded, except in the records of the Authority.
[An. Code 1957, art. 43C, § 14; 2008, ch. 306, § 2.]