261A.44 - OBLIGATIONS SECURED BY TRUST AGREEMENT.

        261A.44  OBLIGATIONS SECURED BY TRUST AGREEMENT.
         Obligations issued under this division may be secured by a trust
      agreement by and between the authority and an incorporated trustee,
      which may be a trust company or bank having the powers of a trust
      company within or without the state.  The trust agreement or the
      resolution providing for the issuance of the obligations may pledge
      or assign the revenue to be received or proceeds of any contract
      pledged and may convey or mortgage the project or any portion of the
      project.  A pledge or assignment made by the authority pursuant to
      this section is valid and binding from the time that the pledge or
      assignment is made, and the revenue pledged and thereafter received
      by the authority is immediately subject to the lien of the pledge or
      assignment without physical delivery or any further act.  The lien of
      the pledge or assignment is valid and binding against all parties
      having claims of any kind in tort, contract, or otherwise against the
      authority irrespective of whether the parties have notice of the
      lien.  The resolution or trust agreement by which a pledge is created
      or an assignment made shall be filed or recorded in the records of
      the authority, with the secretary of state, and in each county in
      which the project is located.  The trust agreement or resolution
      providing for the issuance of the obligations may contain provisions
      for protecting and enforcing the rights and remedies of the
      obligation holders as are reasonable and proper, not in violation of
      law, or provided for in this division.  A bank or trust company
      incorporated under the laws of this state which acts as depository of
      proceeds of the obligations, revenue, or other money shall furnish
      the indemnifying obligations or pledge the securities as required by
      the authority.  The trust agreement may set forth the rights and
      remedies of the obligation holders and of the trustee, and may
      restrict the individual right of action by obligation holders.  The
      trust agreement or resolution may contain other provisions the
      authority deems reasonable and proper for the security of the
      obligation holders.  Expense incurred in carrying out the trust
      agreement or resolution may be treated as a part of the cost of the
      operation of a project.  
         Section History: Recent Form
         85 Acts, ch 210, §14
         Referred to in § 261A.42