§ 45-37.1-7 - Security for bonds and notes – Construction and acquisition of projects.
SECTION 45-37.1-7
§ 45-37.1-7 Security for bonds and notes– Construction and acquisition of projects. – (a) The principal of and interest on any bonds or notes issued by thecorporation may be secured by a pledge of any revenues and receipts of thecorporation and may be secured by a mortgage or deed of trust or trustindenture covering all or any part of a project, including any additions,improvements, extensions to or enlargements of any projects thereafter made.The bonds or notes may also be secured by an assignment of the lease or otherfinancing agreement, with respect to any project for the construction andacquisition of which the bonds or notes are issued, and by an assignment of therevenues and receipts derived by the corporation from the lease or otherfinancing agreement. The resolution under which the bonds or notes areauthorized to be issued and the mortgage, deed of trust, trust indenture,lease, or other financing agreement may contain agreements and provisionsrespecting the maintenance of the projects covered by them, the fixing andcollection of rents or other revenues for any portions of them leased or soldby the corporation to others, the creation and maintenance of special fundsfrom those revenues, and the rights and remedies available in the event ofdefault, all as the corporation deems advisable and not in conflict with theprovisions hereof. Each pledge, agreement, mortgage, deed of trust, and trustindenture made for the benefit or security of any of the bonds or notes of thecorporation are valid and binding from the time the pledge is made, and shallcontinue to be in effect until the principal of and interest on the bonds ornotes for the benefit of which the bonds or notes were made have been fullypaid, or until provision has been made for payment in the manner provided inthe resolution or resolutions under which the bonds or notes may be authorized.The revenues, moneys, or property pledged by the corporation are immediatelysubject to the lien of a pledge without any physical delivery or further act,and the lien of the pledge is valid and binding against all parties havingclaims of any kind in tort, contract, or otherwise against the corporation,irrespective of whether the parties have notice thereof. Neither the resolutionnor any other instrument by which a pledge is created need be recorded. In theevent of a default in the payment of the principal of and interest on any bondsor notes or in any agreements of the corporation made as a part of the contractunder which the bonds or notes are issued, whether contained in the proceedingsauthorizing the bonds or notes or in any instrument executed as security forthem, the rights of affected bondholders or noteholders may be enforced bymandamus, the appointment of a receiver in equity, or by foreclosure of themortgage, deed of trust, or other instrument, or any one or more of thoseremedies or any other remedy provided in the proceedings.
(b) The corporation may provide, in any proceedings underwhich bonds or notes may be authorized, that any project, or part thereof, orany addition, improvement, extension, or enlargement, may be constructed by thecorporation or the lessee or other occupant of the project or any designee ofthe corporation, the lessee, or other occupant of the project, or of any ofthem, and may also provide in the proceedings for the time and manner of andrequisites for disbursements to be made for the cost of the construction andacquisition, and for all the certificates and approvals of construction anddisbursements as the corporation deems necessary and provides for in theproceedings.