§ 14-303-507 — Security and payment of bonds

(a) The principal of, and interest on, all revenue bonds issued under the authority of this chapter shall be secured solely by a pledge of, and shall be payable solely from, tollway project revenues. (b) They shall not be secured by a statutory or forecloseable mortgage lien on the tollway project, or any of the facilities, of or in connection with, the tollway project. (c) Each resolution authorizing the issuance of bonds, each trust indenture executed and delivered to secure the bonds, and this chapter shall constitute a contract by and between the authority involved and the holders and owners of the bonds issued under this chapter. This contract and all covenants, agreements, and obligations therein, including, without limitation, an obligation on the part of the authority involved to always operate the tollway project as a revenue producing undertaking so long as any bonds are outstanding, to properly maintain the tollway project, and to charge and collect tollway project revenues in required amounts, all as specified in detail in the resolution, the trust indenture, and in this chapter shall be promptly performed in strict accordance with the terms and provisions of the contract. The contract, all rights of the trustee and of the holders and owners of the bonds, and the obligations of the authority may be enforced by mandamus or any other appropriate proceeding at law or in equity.

Legislative History

Acts 1968 (1st Ex. Sess.), No. 33, § 14; A.S.A. 1947, § 76-2614.