1525 - Provisions of bonds; trust agreements.
§ 1525. Provisions of bonds; trust agreements. A resolution authorizing the issuance of bonds or any trust agreement approved in or by a resolution authorizing the issuance of bonds may contain provisions which do any of the following: (1) Secure the bonds. (2) Covenant against any of the following: (i) Pledging or granting a security interest in all or any part of the authority's revenues or all or any part of its property to which its right or title exists or which may later come into existence. (ii) Permitting or suffering any lien on all or any part of its revenues or property. (iii) Extending the time for the payment of bonds or interest. (3) Covenant with respect to limiting the authority's right to sell, pledge or otherwise dispose of bonds or notes of governmental units, loan agreements or other property. (4) Covenant as to any of the following: (i) Additional bonds to be issued. (ii) Limitations on additional bonds. (iii) Terms and conditions of additional bonds. (iv) Custody, application, investment and disposition of proceeds of bonds. (v) Incurring of other debts or obligations by the authority. (vi) Payment of principal of or interest on bonds. (vii) Sources and methods of payment. (viii) Rank or priority of bonds with respect to liens or security interests. (ix) Redemption, purchase and tender of bonds by the authority or the bondholders and the privilege of exchange of the bonds for other bonds. (x) Use, investment and disposition of the money held in special funds, accounts or reserves. (xi) Use of any or all of the authority's real or personal property. (xii) Warrant of title to the authority's real or personal property. (5) Provide for any of the following: (i) Replacement of lost, stolen, destroyed or mutilated bonds. (ii) Maintenance of the authority's real and personal property. (iii) Replacement of the authority's real and personal property. (iv) Insurance to be carried on the authority's real and personal property and the use and disposition of the insurance proceeds. (v) Rights, liabilities, powers and duties arising upon the breach of any covenant, condition or obligation. (6) Create or authorize the creation of special funds or accounts to be held in trust or otherwise for the benefit of bondholders or of reserves for debt service or other purposes. (7) Provide for obtaining letters of credit, bond insurance and other facilities for credit enhancement and liquidity. (8) Prescribe any of the following: (i) Procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated. (ii) Percentage of the principal amount of bonds the holders of which must consent to the amendment or abrogation of any contract. (iii) Manner in which the consent under subparagraph (ii) may be given. (9) Prescribe any of the following: (i) Events of default. (ii) Terms and conditions upon which any or all of the bonds become or may be declared due and payable before stated maturity following an event of default. (iii) Terms and conditions upon which the declaration of default and its consequence may be waived. (10) Pay the costs or expenses incident to any of the following: (i) The enforcement of the bonds. (ii) The provisions of the resolution authorizing the issuance of the bonds. (iii) The trust agreement securing the bonds. (iv) Any covenant or agreement of the authority with the holders of the bonds or other obligees of the authority. (11) Vest in a trustee, within or without this Commonwealth, any property, rights, powers and duties in trust, including rights with respect to the sale or other disposition of notes and bonds of governmental units and other instruments and security pledged under a resolution or trust agreement for the benefit of bondholders and rights, by suit or action, to foreclose a mortgage pledged under a resolution or trust indenture for the benefit of bondholders. (12) Limit the rights, powers and duties of a trustee and the right of bondholders to appoint a trustee. (13) Establish the terms and conditions upon which a trustee or the bondholders may enforce a covenant or rights securing or relating to the bonds. (14) Exercise all or any part or combination of the powers granted in this chapter. (15) Make covenants other than and in addition to the covenants expressly authorized by this chapter. (16) Do or refrain from doing any other act and thing necessary, convenient or desirable in order to better secure the bonds of the authority or, in the absolute discretion of the authority, as will tend to make bonds of the authority more marketable. This paragraph applies notwithstanding that the covenant, act or thing may not be specifically enumerated in this chapter as long as the covenant, act or thing is in accordance with the intent of this chapter.