19-9-109 - Security for obligations -- Provisions of security instruments.
19-9-109. Security for obligations -- Provisions of security instruments.
(1) The principal and interest on any obligation issued pursuant to this chapter shall besecured by:
(a) a pledge and assignment of the proceeds earned by the facility built and acquired withthe proceeds of the obligations;
(b) a mortgage or trust deed on the facility built and acquired with the proceeds from theobligations; and
(c) such other security on the facility as is deemed most advantageous by the authority.
(2) Obligations authorized for issuance under this chapter and any mortgage or othersecurity given to secure such obligations may contain any provisions customarily contained insecurity instruments, including, but not limited to:
(a) the fixing and collection of fees from the facility;
(b) the maintenance of insurance on the facility;
(c) the creation and maintenance of special funds to receive revenues earned by thefacility; and
(d) the rights and remedies available to obligation holders in the event of default.
(3) All mortgages, trust deeds, security agreements, or trust indentures on a facility shallprovide, in the event of foreclosure, that no deficiency judgment may be entered against theauthority, the state, or any of the state's political subdivisions.
(4) Any mortgage or other security instrument securing such obligations may providethat in the event of a default in the payment of principal or interest or in the performance of anyagreement, that payment or performance may be enforced by the appointment of a receiver withpower to charge and collect fees and to apply the revenues from the facility in accordance withthe provisions of the security instrument.
(5) Any mortgage or other security instrument made pursuant to this chapter may alsoprovide that in the event of default in payment or breach of a condition, that the mortgage may beforeclosed or otherwise satisfied in any manner permitted by law, and that the trustee under themortgage or the holder of any obligation secured by such mortgage may, if the highest bidder,purchase the security at foreclosure sale.
Renumbered and Amended by Chapter 184, 2003 General Session