§ 14-188-111 — Powers in connection with issuance of bonds, etc

In connection with the issuance of bonds or with the incurrence of other indebtedness, and in order to secure the payment of bonds or other evidence of indebtedness, a rural development authority, in addition to its other powers, shall have power: (1) To pledge all or any part of its gross or net rents, fees, or revenues to which its right then exists or may thereafter come into existence; (2) To mortgage all, or any part, of its real or personal property, then owned or thereafter acquired; (3) (A) To covenant against pledging all, or any part, of its rents, fees, and revenues or against mortgaging all, or any part, of its real or personal property, to which its right or title then exists or may thereafter come into existence or to covenant against permitting or suffering any lien on such revenues or property; (B) To covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any development project, or any part of it; and (C) To covenant as to what other, or additional, debts or obligations may be incurred by it; (4) (A) To covenant as to the bonds to be issued as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds of them; (B) To provide for the replacement of lost, destroyed, or mutilated bonds; (C) To covenant against extending the time for the payment of its bonds, or interest on them; (D) To redeem the bonds; (E) To covenant for their redemption; and (F) To provide the terms and conditions of them; (5) (A) To covenant as to the rents and fees to be charged in the operation of a development project or projects, the amount to be raised each year or other period of time by rents, fees, and other revenues, and as to the use and disposition to be made of them; (B) To create or to authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes; and (C) To covenant as to the use and disposition of the moneys held in these funds; (6) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given; (7) (A) To covenant as to the use of any or all of its real or personal property; and (B) To covenant as to the maintenance of its real and personal property, the replacement of it, the insurance to be carried on it, and to the use and disposition of insurance moneys; (8) (A) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and (B) To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds or obligations shall become or may be declared due before maturity, and as to the terms and conditions upon which this declaration and its consequences may be waived; (9) (A) To vest in trustees, or the holders of bonds or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds; (B) To vest in trustees the right, in the event of a default by the authority, to take possession and use, operate, and manage any development project, or part of it, and to collect the rents and revenues arising from it, and to dispose of the moneys in accordance with the agreement of the authority with the trustee; (C) To provide for the powers and duties of trustees and to limit the liabilities of them; and (D) To provide the terms and conditions upon which the trustees, or the holders of bonds or any proportion of them, may enforce any covenant or rights securing or relating to the bonds; and (10) (A) To exercise all, or any part or combination, of the powers granted in this section; (B) To make covenants other than, and in addition to, the covenants expressly authorized in this section, of like or different character; and (C) To make such covenants and to do any and all such acts and things as may be necessary, convenient, or desirable in order to secure its bonds, or, in the absolute discretion of the authority, as will tend to make the bonds more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this section.

Legislative History

Acts 1963, No. 172, § 15; A.S.A. 1947, § 20-1415.