§ 14-164-511 — Bonds - Trust indenture

(a) The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders. (b) The indenture may control the priority between successive issues and may contain any other items, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to: (1) The custody and application of the proceeds of the bonds; (2) The collection and disposition of revenues; (3) The maintenance of various funds and reserves; (4) The nature and extent of the security; (5) The rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds; and (6) The rights of the holders or registered owners of the bonds. (c) It shall not be necessary for the municipality or county to publish any indenture, lease, or any other agreement if: (1) The ordinance authorizing an indenture, the ordinance authorizing a lease, or the ordinance authorizing any other agreement: (A) Is published as required by the law governing the publication of ordinances of a municipality; and (B) Advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by an interested person; and (2) The copy of the indenture, lease, or other agreement, as the case may be, is filed with the clerk or recorder of the municipality or county clerk.

Legislative History

Acts 1985, No. 1017, § 5; A.S.A. 1947, § 13-1277.