§ 42-64-17 - Security for bonds or notes.
SECTION 42-64-17
§ 42-64-17 Security for bonds or notes.– (a) The principal of and interest on any bonds or notes issued by the RhodeIsland economic development corporation may be secured by a pledge of anyrevenues and receipts of the corporation and may be secured by a mortgage orother instrument covering all or any part of one or more projects, includingall or part of any additions, improvements, extensions to, or enlargements ofprojects thereafter made.
(b) Bonds or notes issued for the acquisition, construction,reconstruction, rehabilitation, development, or improvement of one or moreprojects may also be secured by an assignment of leases of, or mortgages on, orcontracts of sale or loan agreements with regard to the project or projects andby an assignment of the revenues, receipts, payments, or repayments derived bythe corporation from those leases, mortgages, sales agreements, or loanagreements.
(c) The resolution under which the bonds or notes areauthorized to be issued and any mortgage, lease, sales agreement, or loanagreement, or other instrument may contain agreements and provisions respectingthe maintenance of the projects covered thereby, the fixing and collection ofrents, payments or repayments or other revenues, including moneys received inrepayment of loans, and interest on the loans, the creation and maintenance ofspecial funds from rents or other revenues and the rights and remediesavailable in the event of default, all as the corporation shall deem advisable.
(d) Each pledge, agreement, mortgage, or other instrumentmade for the benefit or security of any of the bonds or notes of thecorporation shall be valid and binding from the time the pledge is made andshall continue in effect until the principal of and interest on the bonds ornotes for the benefit of which the pledge was made has been fully paid, oruntil provision has been made for the payment in the manner provided in theresolutions under which those bonds or notes were authorized. The revenues,moneys, or property pledged by the corporation shall immediately be subject tothe lien of that pledge without any physical delivery thereof or further act,and the lien of the pledge shall be valid and binding as against all partieshaving claims of any kind in tort, contract, or otherwise against thecorporation, irrespective of whether the parties have notice thereof. Neitherthe resolution nor any other instrument by which a pledge is created need berecorded.
(e) The corporation may provide in any proceedings underwhich bonds or notes may be authorized that any project or part of a projectmay be constructed, reconstructed, rehabilitated, or improved by thecorporation, or any lessee, vendee, obligor, or any designee of the corporationand may also provide in those proceedings for the time and manner of andrequisitions for disbursements to be made for the cost of the construction, andfor any certificates and approvals of construction and disbursements that thecorporation shall deem necessary and provide for in those proceedings.
(f) Any resolution under which bonds or notes of thecorporation are authorized to be issued (and any trust indenture establishedthereby) may contain provisions for vesting in a trustee or trustees thoseproperties, rights, powers, and duties in trust that the corporation maydetermine, including any or all of the rights, powers, and duties of thetrustee appointed by the holders of any issue of bonds or notes pursuant to§ 42-64-25, in which event the provisions of § 42-64-25 authorizingthe appointment of a trustee by holders of bonds or notes shall not apply.