§ 45-54-11 - Trust agreement.
SECTION 45-54-11
§ 45-54-11 Trust agreement. – In the discretion of the corporation, any bonds issued under the provisions ofthis chapter may be secured by a trust agreement by and between the corporationand 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 establishing the duties of thecorporation 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, and inrelation to the custody, safeguarding, and application of all moneys; andconditions or limitations with respect to the issuance of additional bonds. Itis lawful for any bank or trust company incorporated under the laws of thestate which may act as depository of the proceeds of bonds or of revenues tofurnish indemnifying bonds or to pledge those securities that may be requiredby the corporation. Any trust agreement may establish the rights and remediesof the bondholders and of the trustee, and may restrict the individual right ofaction by bondholders. In addition to the preceding, any trust agreement orresolution may contain any other provisions that the corporation may deemreasonable and proper for the security of the bondholders. All expensesincurred in carrying out the provisions of the trust agreement or resolutionmay be treated as a part of the corporation's cost of operation and maintenance.