§ 157-16. Provisions of bonds, trust indentures, and mortgages.
§ 157‑16. Provisions of bonds, trust indentures, and mortgages.
In connection with the issuance of bonds and/or the incurring of anyobligation under a lease and in order to secure the payment of such bondsand/or obligations, the authority shall have power:
(1) To pledge by resolution, trust indenture, mortgage, or othercontract, all or any part of its rents, fees, or revenues.
(2) To covenant against mortgaging all or any part of itsproperty, real or personal, then owned or thereafter acquired, or againstpermitting or suffering any lien thereon.
(3) To covenant with respect to limitations on its right tosell, lease or otherwise dispose of any housing project or any part thereof, orwith respect to limitations on its right to undertake additional housingprojects.
(4) To covenant against pledging all or any part of its rents,fees and revenues to which its right then exists or the right to which maythereafter come into existence or against permitting or suffering any lienthereon.
(5) To provide for the release of property, rents, fees andrevenues from any pledge or mortgage, and to reserve rights and powers in, orthe right to dispose of, property which is subject to a pledge or mortgage.
(6) To covenant as to the bonds to be issued pursuant to any resolution,trust indenture, mortgage or other instrument and as to the issuance of suchbonds in escrow or otherwise, and as to the use and disposition of the proceedsthereof.
(7) To covenant as to what other, or additional debt, may beincurred by it.
(8) To provide for the terms, form, registration, exchange,execution and authentication of bonds.
(9) To provide for the replacement of lost, destroyed ormutilated bonds.
(10) To covenant that the authority warrants the title to thepremises.
(11) To covenant as to the rents and fees to be charged, theamount (calculated as may be determined) to be raised each year or other periodof time by rents, fees, and other revenues and as to the use and disposition tobe made thereof.
(12) To covenant as to the use of any or all of its property, realor personal.
(13) To create or to authorize the creation of special funds inwhich there shall be segregated
a. The proceeds of any loan and/or grant;
b. All of the rents, fees and revenues of any housing projector projects or parts thereof;
c. Any moneys held for the payment of the costs of operationand maintenance of any such housing projects or as a reserve for the meeting ofcontingencies in the operation and maintenance thereof;
d. Any moneys held for the payment of the principal andinterest on its bonds or the sums due under its leases and/or as a reserve forsuch payments; and
e. Any moneys held for any other reserves or contingencies; andto covenant as to the use and disposal of the moneys held in such funds.
(14) To redeem the bonds, and to covenant for their redemption andto provide the terms and conditions thereof.
(15) To covenant against extending the time for the payment of itsbonds or interest thereon, directly or indirectly, by any means or in any manner.
(16) To prescribe the procedure, if any, by which the terms of anycontract with bondholders may be amended or abrogated, the amount of bonds theholders of which must consent thereto and the manner in which such consent maybe given.
(17) To covenant as to the maintenance of its property, thereplacement thereof, the insurance to be carried thereon and the use anddisposition of insurance moneys.
(18) To vest in an obligee of the authority the right, in theevent of the failure of the authority to observe or perform any covenant on itspart to be kept or performed, to cure any such default and to advance anymoneys necessary for such purpose, and the moneys so advanced may be made anadditional obligation of the authority with such interest, security andpriority as may be provided in any trust indenture, mortgage, lease or contractof the authority with reference thereto.
(19) To covenant and prescribe as to the events of default andterms and conditions upon which any or all of its bonds shall become or may bedeclared due before maturity and as to the terms and conditions upon which suchdeclaration and its consequences may be waived.
(20) To covenant as to the right, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation.
(21) To covenant to surrender possession of all or any part of anyhousing project or projects upon the happening of an event of default (asdefined in the contract) and to vest in an obligee the right without judicialproceedings to take possession and to use, operate, manage and control suchhousing projects or any part thereof, and to collect and receive all rents,fees and revenues arising therefrom in the same manner as the authority itselfmight do and to dispose of the moneys collected in accordance with theagreement of the authority with such obligee.
(22) To vest in a trustee or trustees the right to enforce anycovenant made to secure, to pay, or in relation to the bonds, to provide forthe powers and duties of such trustee or trustees, to limit liabilities thereofand to provide the terms and conditions upon which the trustee or trustees orthe holders of bonds or any proportion of them may enforce any such covenant.
(23) To make covenants other than in addition to the covenantsherein expressly authorized, of like or different character.
(24) To execute all instruments necessary or convenient in theexercise of the powers herein granted or in the performance of its covenants orduties, which may contain such covenants and provisions, in addition to thoseabove specified as the government or any purchaser of the bonds of theauthority may reasonably require.
(25) To make such covenants and to do any and all such acts andthings as may be necessary or convenient or desirable in order to secure itsbonds, or in the absolute discretion of the authority tend to make the bondsmore marketable; notwithstanding that such covenants, acts or things may not beenumerated herein; it being the intention hereof to give the authority power todo all things in the issuance of bonds, in the provisions for their securitythat are not inconsistent with the Constitution of the State and no consent orapproval of any judge or court shall be required thereof. (1935, c. 456, s. 16; 1979, c. 690, ss. 2, 3.)