61-3-49 - Securing of bond by trust agreement.
§ 61-3-49. Securing of bond by trust agreement.
In the discretion of the authority, all bonds may be further secured by a trust agreement between the authority and a corporate trustee, which may be any trust company or bank having powers of a trust company within or without the state. Any such trust agreement or any resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law.
The trust agreement may contain provisions for the issuance of additional bonds under the procedures established by this chapter for any of the purposes authorized by this chapter which shall be secured by the revenues pledged thereunder for such bonds to the extent provided therein.
The trust agreement may include provisions to the effect that, if there is any default in the payment of principal or interest on any of said bonds, any court of competent jurisdiction may appoint a receiver to administer the properties and facilities of the authority described in the trust agreement on behalf of the authority, including authority to sell or make contracts for the sale of any services, facilities or commodities of the authority or to renew such contracts, subject to the approval of the court appointing the said receiver, and with power to provide for the payment of such bonds outstanding, or the payment of operating expenses, and to apply the income and revenues to the payment of the said bonds and interest thereon in accordance with the resolution of the authority authorizing the issuance of such bonds and the said trust agreement. The fee for the services of any corporate trustee shall not exceed the normal charges for acting as paying agent, plus any additional amount or amounts allowed by the court as the reasonable value of services rendered by the corporate trustee.
The powers herein granted may be exercised whether or not a trust agreement is entered into and, if no trust agreement is entered into, such provisions as are above authorized may be set out in the resolution authorizing the bonds.
Sources: Codes, 1942, § 7545-40; Laws, 1958, ch. 230, § 10; Laws, 1969, Ex. Sess. ch. 35, § 1, eff from and after passage (approved October 7, 1969).