§ 27-90-211 — Security and payment

(a) (1) The principal of and interest on all bonds issued under this subchapter shall be secured by a pledge of, and shall be payable from turnpike project revenues. (2) The pledge of revenues to the payment of the principal of and interest on the bonds shall be valid and binding from the time the pledge is made. (3) The turnpike project revenues so pledged shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act. (4) The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the State Highway Commission, irrespective of whether such parties have notice thereof. (5) Neither the authorizing resolution nor any trust indenture by which a pledge is created need be filed or recorded in any office or other place except in the records of the commission. (b) (1) Principal and interest shall not be secured by a statutory or foreclosable mortgage lien on a turnpike project, any of the facilities of or in connection with a turnpike project, or any other facilities owned or operated by the commission. (2) The term "facilities" includes all real and personal property owned or operated by the commission. (c) (1) Each resolution authorizing the issuance of bonds and each trust indenture executed and delivered to secure the bonds in this subchapter shall constitute a contract by and between the commission and the holders and registered owners of the bonds issued under the resolution or trust indenture. (2) Any contract and all covenants, agreements, and obligations therein, including without limitation an obligation on the part of the commission to operate a turnpike project as a revenue-producing undertaking so long as any bonds are outstanding, to maintain the turnpike project, and to charge and collect turnpike project revenues in required amounts, all as specified in detail in the authorizing resolution, the trust indenture, and in this subchapter shall be promptly performed in accordance with the terms and provisions of the contract. (3) The contract and all rights of the trustee and holders and registered owners of the bonds and the obligations of the commission may be enforced by mandamus or any other appropriate proceeding at law or in equity.

Legislative History

Acts 2003, No. 296, § 5.