Section 10-515 - Bonds - Trust agreement.
§ 10-515. Bonds - Trust agreement.
(a) Corporate trustee.-
(1) The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee.
(2) A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.
(3) A corporation or trust company incorporated in the State may:
(i) act as depository of bond proceeds or revenue; and
(ii) furnish any indemnity bond or pledge security that the Corporation requires.
(b) Contents.- The trust agreement or the resolution that provides for the issuance of a bond may:
(1) state the rights and remedies of bondholders and any trustee;
(2) contain provisions to protect and enforce the rights and remedies of bondholders;
(3) contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money;
(4) restrict the individual right of action of bondholders;
(5) provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and
(6) provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines.
(c) Expenses.- Expenses incurred in carrying out a trust agreement may be treated as a part of the cost of operation of the Corporation.
[An. Code 1957, art. 41, § 13-510(l); 2008, ch. 306, § 2.]