§ 45-50-15 - Trust agreements.
SECTION 45-50-15
§ 45-50-15 Trust agreements. – In the discretion of the authority, any bonds issued under the provisions ofthis chapter may be secured by a trust agreement by and between the authorityand a corporate trustee, which may be any trust company or bank having thepowers of a trust company within or without the state. The trust agreement orthe resolution providing for the issuance of the bonds may pledge or assign therevenues to be received, and may convey or mortgage or grant a securityinterest in any project or any part of it or any combination of projects orparts of them. The trust agreement or resolution providing for the issuance ofthe bonds may contain provisions for protecting and enforcing the rights andremedies of the bondholders or noteholders as may be reasonable and proper andnot in violation of law, including covenants stating the duties of theauthority in relation to the acquisition of property and the construction,improvement, maintenance, repair, operation, and insurance of the project orprojects in connection with which the bonds have been authorized, the custody,safeguarding, and application of all moneys, and conditions or limitations withrespect to the issuance of additional bonds. It is lawful for any bank or trustcompany incorporated under the laws of the state which may act as depository ofthe proceeds of bonds or of revenues to furnish indemnifying bonds or to pledgesecurities as may be required by the authority. Any trust agreement may statethe rights and remedies of the bondholders and of the trustee, and may restrictthe individual right of action by bondholders. In addition to the preceding,any trust agreement or resolution may contain any other provisions that theauthority may deem reasonable and proper for the security of the bondholders.All expenses incurred in carrying out the provisions of the trust agreement orresolution may be treated as a part of the authority's cost of operation andmaintenance.