§ 14-169-226 — Agreement to sell project as security for federal obligations

(a) (1) In any contract or amendatory or superseding contract for a loan and annual contributions entered into between any housing authority and the federal government or any of its agencies, with respect to any housing project undertaken by the authority, the authority is authorized to make such covenants, including covenants with holders of obligations of the authority issued for purposes of the project involved. The authority may confer upon the federal government or any of its agencies such rights and remedies as the authority deems necessary to assure the fulfillment of the purposes for which the project was undertaken. (2) In any such contract, the authority may, notwithstanding any other provisions of law, agree to sell and convey the project, including all lands appertaining to it, to which the contract relates to the federal government, or any agency thereof, upon the occurrence of such conditions, or upon such defaults on obligations for which any of the annual contributions provided in the contract are pledged, as may be prescribed in the contract, and at a price, which may include the assumption by the federal government, or any agency thereof, of the payment, when due, of the principal of, and interest on, outstanding obligations of the housing authority issued for purposes of the project involved, determined as prescribed and upon such other terms and conditions as are provided in the contract. (b) Any authority is authorized to enter into such supplementary contracts and to execute such conveyances as may be necessary to carry out the provisions of this section. (c) Notwithstanding any other provisions of law, any contracts, supplementary contracts, or any conveyances made or executed pursuant to the provisions of this section shall not be or constitute a mortgage within the meaning of, or for the purposes of, any of the laws of this state.

Legislative History

Acts 1943, No. 280, § 11; A.S.A. 1947, § 19-3024.