23-50.16:28 - Trust indentures and mortgages; security for the bonds
§ 23-50.16:28. Trust indentures and mortgages; security for the bonds.
Any bond issued under this chapter may be issued pursuant to or secured by atrust indenture, deed of trust or mortgage of any project or projects or anyother property of the Authority, whether or not financed, in whole or inpart, from the proceeds of such bonds, by a trust or other agreement with acorporate trustee, which may be any trust company or bank having the powersof a trust company within or without the Commonwealth, or other agent forbondholders, or any combination thereof. Any such trust indenture or otheragreement, or the resolution providing for the issuance of bonds, may pledgeor assign fees, rents and other charges to be received and may containprovisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law. Suchprovisions may include covenants: (i) providing for the collection andapplication of revenues and the repossession and sale by the Authority, orany trustees under any trust indenture or agreement, of any project or otherproperty upon default; (ii) setting forth duties of the Authority in relationto the acquisition, construction, maintenance, operation and insurance of anyproject or other property of the Authority and the amounts of fees, rents andother charges to be charged; (iii) providing for the collection of such fees,rents and other charges, and the custody, safeguarding and application of allmoneys of the Authority; (iv) providing for the creation of sinking funds andthe creation and maintenance of reserves; and (v) setting forth conditions orlimitations with respect to the incurrence of indebtedness or the granting ofmortgages or other liens. Such trust indenture, trust or other agreement orresolution may set forth the rights and remedies of the bondholders and ofthe trustee or other agent for bondholders and may restrict the individualright of action by bondholders.
In addition, the Authority may grant mortgages, deeds of trust, securityinterests and other liens on its real and personal property, including itsaccounts receivable, to secure bonds. All pledges of revenues of theAuthority for payment of bonds shall be valid and binding from the time whenthe pledge is made, and the revenues pledged and thereafter received by theAuthority shall be subject immediately to the lien of such pledge without anyphysical delivery thereof or further act, and the lien of any such pledgeshall be valid and binding as against all parties having claims of any kindin tort, contract or otherwise against the Authority, irrespective of whethersuch parties have notice thereof. The Authority may also provide for therecording or filing of any mortgage, deed of trust, security interest orother lien, or any financing statement or other instrument, necessary ordesirable to create, perfect or evidence any lien created pursuant to thischapter.
It shall be lawful for any bank or trust company within or without theCommonwealth to serve as depository of the proceeds of bonds or of otherrevenues of the Authority and to furnish indemnifying bonds or to pledge suchsecurities as may be required by the Authority.
All expenses incurred in carrying out the provisions of such trust indentureor agreement or resolution or other agreements relating to any project,including those to which the Authority may not be a party, may be treated asa part of the costs of a project.
(1996, cc. 905, 1046.)