§ 159D-46. Trust agreement or resolution.
§ 159D‑46. Trust agreement or resolution.
In the discretion of the agency any bonds or notes issued under theprovisions of this Article may be secured by a trust agreement by and betweenthe agency and a corporate trustee, which may be any trust company or bankhaving the powers of a trust company within or without the State. Such trustagreement or the resolution authorizing the issuance of such bonds or notes maypledge or assign all or any part of the revenues of the agency receivedpursuant to this Article, including, without limitation, fees, loan repayments,purchase price payments, rents, charges, insurance proceeds, condemnationawards and any other revenues and funds received in connection with any projectand may grant a deed of trust or a mortgage on any project. Such trustagreement or resolution may contain such provisions for protecting andenforcing the rights and remedies of the holders of any such bonds or notes asmay be reasonable and proper and not in violation of law, including covenantssetting forth the duties of the agency in relation to the purposes to whichbond or note proceeds may be applied, the disposition or pledging of therevenues of the agency, including any payments in respect of any federallyguaranteed security or any federally insured mortgage note, the duties of theagency with respect to the acquisition, construction, maintenance, repair andoperation of any project, the fees, loan repayments, purchase price payments,rents and charges to be fixed and collected in connection therewith, the termsand conditions for the issuance of additional bonds or notes, and the custody,safeguarding and application of all moneys. All bonds issued under this Articleshall be equally and ratably secured by a pledge, charge, and lien uponrevenues provided for in such trust agreement or resolution, without priorityby reason of number, or of dates of bonds, execution, or delivery, inaccordance with the provisions of this Article and of such trust agreement orresolution; except that the agency may provide in such trust agreement orresolution that bonds issued pursuant thereto shall to the extent and in themanner prescribed in such trust agreement or resolution be subordinated andjunior in standing, with respect to the payment of principal and interest andthe security thereof, to any other bonds. It shall be lawful for any bank ortrust company incorporated under the laws of the State which may act asdepositary of the proceeds of bonds or notes, revenues or other money hereunderto furnish such indemnifying bonds or to pledge such securities as may berequired by the agency. Any such trust agreement or resolution may set off therights and remedies, including foreclosure of any deed of trust or mortgage, ofthe holders of any bonds or notes and of the trustee, and may restrict theindividual right of action by any such holders. In addition to the foregoing,any such trust agreement or resolution may contain such other provisions as theagency considers reasonable and proper for the security of the holders of anybonds or notes. Expenses incurred in carrying out the provisions of such trustagreement or resolution may be treated as a part of the cost of any project orpaid from the revenues pledged or assigned to the payment of the principal ofand the interest on bonds or notes or from any other funds available to theagency. (1985 (Reg. Sess.,1986), c. 794, s. 12; 2000‑179, s. 2.)