36-31 - Provisions of bonds, trust indentures and mortgages.
§ 36-31. Provisions of bonds, trust indentures and mortgages.
In connection with the issuance of bonds or the incurring of obligationsunder leases and in order to secure the payment of such bonds or obligations,an authority, in addition to its other powers, shall have power:
(a) To pledge all or any part of its gross or net rents, fees or revenues towhich its right then exists or may thereafter come into existence.
(b) To mortgage all or any part of its real or personal property, then ownedor thereafter acquired.
(c) To covenant against pledging all or any part of its rents, fees andrevenues, or against mortgaging all or any part of its real or personalproperty, to which its right or title then exists or may thereafter come intoexistence or against permitting or suffering any lien on such revenues orproperty; to covenant with respect to limitations on its right to sell, leaseor otherwise dispose of any housing project or any part thereof; and tocovenant as to what other, or additional debts or obligations may be incurredby it.
(d) To covenant as to the bonds to be issued and as to the issuance of suchbonds in escrow or otherwise, and as to the use and disposition of theproceeds thereof; to provide for the replacement of lost, destroyed ormutilated bonds; to covenant against extending the time for the payment ofits bonds or interest thereon; and to redeem the bonds, and to covenant fortheir redemption and to provide the terms and conditions thereof.
(e) To covenant (subject to the limitations contained in this chapter) as tothe rents and fees to be charged in the operation of a housing project orprojects, 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 madethereof; to create or to authorize the creation of special funds for moneysheld for construction or operating costs, debt service, reserves, or otherpurposes, and to covenant as to the use and disposition of the moneys held insuch funds.
(f) To prescribe the procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the amount of bonds the holdersof which must consent thereto and the manner in which such consent may begiven.
(g) To covenant as to the use of any or all of its real or personal property;and to covenant as to the maintenance of its real and personal property, thereplacement thereof, the insurance to be carried thereon and the use anddisposition of insurance moneys.
(h) To covenant as to the rights, liabilities, powers and duties arising uponthe breach by it of any covenant, condition, or obligation; and to covenantand prescribe as to events of default and terms and conditions upon which anyor all of its bonds or obligations shall become or may be declared due beforematurity, and as to the terms and conditions upon which such declaration andits consequences may be waived.
(i) To vest in a trust or trustees or the holders of bonds or any proportionof them the right to enforce the payment of the bonds or any covenantssecuring or relating to the bonds; to vest in a trustee or trustees theright, in the event of a default by the authority, to take possession anduse, operate and manage any housing project or part thereof, and to collectthe rents and revenues arising therefrom and to dispose of such moneys inaccordance with the agreement of the authority with the trustee; to providefor the powers and duties of a trustee or trustees and to limit theliabilities thereof; and to provide the terms and conditions upon which thetrustee or trustees or the holders of bonds or any portion of them mayenforce any covenant or right securing or relating to the bonds.
(j) To exercise all or any part or combination of the powers herein granted;and to make covenants other than and in addition to the covenants hereinexpressly authorized, of like or different character.
(1938, p. 455; Michie Code 1942, § 3145(16).)