36-148 - Pledge of assets to secure bonds of the HDA.
§ 36-148. Pledge of assets to secure bonds of the HDA.
The HDA is empowered at any time and from time to time to transfer, upon thedirection of the Director of the Department of Housing and CommunityDevelopment, from the Fund to banks or trust companies designated by the HDAany or all of the assets of the Fund to be held in trust as security for thepayment of the principal of and premium, if any, and interest on any or allof the bonds of the HDA. The interests of the Fund in any assets sotransferred shall be subordinate to the rights of the trustee under thepledge. To the extent funds are not available from other sources pledged forsuch purpose, any payments of principal and interest received on the assetstransferred or held in trust may be applied by the trustee thereof to thepayment of the principal of and premium, if any, and interest on such bondsof the HDA to which the assets have been pledged, and, if such payments areinsufficient for such purpose, the trustee is empowered to sell any or all ofsuch assets and apply the net proceeds from the sale to the payment of theprincipal of and premium, if any, and interest on such bonds of the HDA. Anyassets of the Fund transferred in trust as set forth above and any paymentsof principal, interest or earnings received thereon shall remain part of theFund but shall be subject to the pledge to secure the bonds of the HDA andshall be held by the trustee to which they are pledged until no longerrequired for such purpose by the terms of the pledge. On or before January 10of each year, the HDA shall transfer, or shall cause the trustee to transfer,to the Fund any assets transferred or held in trust as set forth above whichare no longer required to be held in trust pursuant to the terms of thepledge.
(1988, c. 687.)