§ 42-99-10 - Security for bonds and notes – Construction and acquisition of projects.
SECTION 42-99-10
§ 42-99-10 Security for bonds and notes– Construction and acquisition of projects. – (a) The principal of and interest on any bonds or notes issued by thecorporation may be secured by a pledge of any revenues and receipts of thecorporation and may be secured by a pledge, agreement, mortgage, or deed oftrust or security agreement or trust indenture covering all or any part of aproject, including any additions, improvements, extensions to, or enlargementsof any projects thereafter made. The bonds or notes may also be secured by anassignment of the lease or other financing agreement with respect to anyproject for the construction and acquisition of which the bonds or notes areissued and by an assignment of the revenues and receipts derived by thecorporation from a lease or other financing agreement. The resolution underwhich the bonds or notes are authorized to be issued and any mortgage, deed oftrust, trust indenture, lease, or other financing agreement may containagreements and provisions respecting the maintenance of the projects coveredthereby, the fixing and collection of rents or other revenues for any portionsleased, mortgaged or sold by the corporation to others, the creation andmaintenance of special funds from those revenues and the rights and remediesavailable in the event of default, all as the corporation shall deem advisableand not in conflict with the provisions hereof. Each pledge, agreement,mortgage, deed of trust, security agreement and trust indenture (sometimescollectively referred to as a "pledge") made for the benefit or security of anyof the bonds or notes of the corporations shall be valid and binding from thetime the pledge is made and shall continue effective until the principal of andinterest on the bonds or notes for the benefit of which they were made shallhave been fully paid, or until provision shall have been made for payment inthe manner provided in the resolution or resolutions under which the pledge maybe authorized. The revenues, moneys, or properties pledged by the corporationshall immediately be subject to the lien of the pledge without any physicaldelivery thereof or further act, and the lien of the pledge shall be valid andbinding as against all parties having claims of any kind in tort, contract, orotherwise against the corporation, irrespective of whether the parties havenotice thereof. Neither the resolution nor any other instrument by which apledge is created need be recorded or filed in any public office. In the eventof default in the payment of the principal of and interest on any bonds ornotes or in any agreements of the corporation made as a part of the contractunder which the bonds or notes are issued, whether contained in the proceedingsauthorizing the bonds or notes or in any instrument executed as securitytherefor, the rights of affected bondholders or noteholders may be enforced bymandamus, the appointment of a receiver in equity, or by foreclosure of anysuch mortgage, deed of trust, or other instrument, or any one or more of theremedies or any other remedy provided in any such proceedings.
(b) The corporation may provide in any proceedings underwhich the bonds or notes may be authorized that any project or part of aproject or any addition, improvement, extension, or enlargement may beconstructed by the corporation or the lessee or other occupant of the projector any designee of the corporation, the lessee, or other occupant of theproject, or of any of them, and may also provide in the proceedings for thetime and manner of and requisites for disbursements to be made for the cost ofthe construction and acquisition, and for all the certificates and approvals ofconstruction and disbursements that the corporation shall deem necessary andprovide for in the proceedings.