§ 45-33-8 - Terms and covenants permissible in bonds.
SECTION 45-33-8
§ 45-33-8 Terms and covenants permissiblein bonds. – In connection with the issuance of bonds, an agency, in addition to its otherpowers, has power:
(1) To pledge all or any part of its net rents, fees, orrevenues to which its right then exists or may thereafter come into existence.
(2) To encumber (by mortgage, deed of trust, or otherwise)all or any part of its real or personal property, then owned or thereafteracquired.
(3) To covenant against pledging all or any part of itsrents, fees, and revenues, or against encumbering all or any part of its realor personal property, to which its right or title then exists or may thereaftercome into existence, or against permitting or suffering any lien on revenues orproperty; to covenant with respect to limitations on its right to sell, lease,or otherwise dispose of any redevelopment project or any part of it; and tocovenant as to what other or additional debts or obligations may be incurred byit.
(4) To covenant as to the bonds to be issued and as to theissuance of those bonds in escrow or otherwise, and as to the use anddisposition of the proceeds of those bonds; to provide for the replacement oflost, destroyed, or mutilated bonds, to covenant against extending the time forthe payment of its bonds or interest on them; and to redeem the bonds, and tocovenant for their redemption and to provide the terms and conditions of thebonds.
(5) To covenant, as to the consideration of rents and fees tobe charged in the sale or lease of a redevelopment project or projects, or anypart of it, the amount to be raised each year or other period of time by rents,fees, and other revenues, and as to the use and disposition to be made of therents, fees, and other revenues; and to create or to authorize the creation ofspecial funds for moneys held for redevelopment or other costs, debt service,reserves, or other purposes, and to covenant as to the use and disposition ofthe moneys held in those funds.
(6) To prescribe the procedure, if any, by which the terms ofany contract with bondholders may be amended or abrogated, the amount of bondsthe holders of which must consent thereto, and the manner in which the consentmay be given.
(7) To covenant as to the use of any or all of its real orpersonal property; and to covenant as to the maintenance of its real andpersonal property, the replacement of it, the insurance to be carried, and theuse and disposition of insurance moneys.
(8) To covenant as to the rights, liabilities, powers, andduties arising upon the breach by it of any covenant, condition, or obligation;and to covenant and prescribe as to events of default and terms and conditionsupon which any or all of its bonds or obligations become or may be declared duebefore maturity, and as to the terms and conditions upon which the declarationand its consequences may be waived.
(9) To vest in a trustee or trustees or the holders of bondsor any proportion of them, the right to enforce the payment of the bonds or anycovenants securing or relating to the bonds; to vest in a trustee or trusteesthe right, in the event of a default by the agency, to take possession of anyredevelopment project or part of it, and to collect the rents and revenuesarising from the bonds, and to dispose of the moneys in accordance with theagreement of the agency with the trustee or trustees; to provide for the powersand duties of a trustee or trustees, and to limit the liabilities; and toprovide the terms and conditions upon which the trustee or trustees or theholders of the bonds or any proportion of them may enforce any covenant orrights securing or relating to the bonds.
(10) To exercise all or any part or combination of the powersgranted by this section; and to make covenants and to do any and all acts andthings that may be necessary or convenient or desirable in order to secure itsbonds, or, in the discretion of the agency, except as otherwise provided inchapters 31 – 33 of this title, that will tend to make the bonds moremarketable, notwithstanding that the covenants, acts, or things may not beenumerated in this section.