§ 23-15-112 — Security for bonds and notes

(1) The principal of and interest on
any bonds or notes issued by the authority may be secured by a pledge of or
security interest in the revenues, rentals, and receipts out of which the same may
be made payable or from other moneys available therefor and not otherwise
pledged or used as security and may be secured by a trust indenture, mortgage, or
deed of trust (including assignment of leases or other contract rights of the
authority thereunder) covering all or any part of the facilities from which the
revenues, rentals, or receipts so pledged or used as security may be derived,
including any enlargements of and additions to any such facility thereafter made.
The resolution under which the bonds are authorized to be issued and any such
trust indenture, mortgage, or deed of trust may contain any agreements and
provisions which shall be a part of the contract with the holders of the bonds or
notes to be authorized as to:

(a) The pledging or providing of a security interest in all or any part of the
revenues of a facility or any revenue-producing contract or contracts made by the
authority with any individual, partnership, corporation, or association or any other
body, public or private, to secure the payment of the bonds or notes or of any
particular issue of bonds, subject to such agreements with noteholders or
bondholders as may then exist;

(b) The maintenance of properties covered thereby;

(c) The fixing and collection of mortgage payments, rents, fees, and other
charges and the amounts to be raised in each year thereby and the use and
disposition of the revenues;

(d) The setting aside, creating, and maintaining of special and reserve funds
and sinking funds and the use and disposition of the revenues;

(e) The limitations on the right of the authority or its agent to restrict and
regulate the use of the facilities;

(f) The limitations on the purpose to which the proceeds of sale of any issue
of bonds or notes then or thereafter to be issued may be applied and the pledging
or providing of a security interest in such proceeds to secure the payment of the
bonds or notes or any issue of the bonds or notes;

(g) The limitations on the issuance of additional bonds, the terms upon which
additional bonds may be issued and secured, and the refunding of outstanding
bonds;

(h) The procedure, if any, by which the terms of any contract with
bondholders or noteholders may be amended or abrogated and the total amount of
bonds or notes consented to by the holders thereof and the manner in which such
consent may be given;

(i) The limitations on the amount of moneys derived from a facility to be
expended for operating, administrative, or other expenses of the authority;

(j) The defining of the acts or omissions to act constituting a default in the
duties of the authority to holders of its obligations and the providing of rights and
remedies to such holders in the event of a default;

(k) The mortgaging of a facility and the site thereof for the purpose of
securing the bondholders or noteholders;

(l) Such other additional covenants, agreements, and provisions as are
judged advisable or necessary by the authority for the security of the holders of
such bonds or notes.

(2) Any pledge made by the authority shall be valid and binding at the time
the pledge is made and thereafter until satisfied. The revenues, moneys, or property
so pledged and thereafter received by the authority shall immediately be subject to
the lien of such pledge without any physical delivery thereof or further act, and the
lien of such pledge shall be valid and binding as against all parties having claims of
any kind in tort or contract or in any other form against the authority, irrespective of
whether such parties have notice thereof. Neither the resolution nor any other
instrument by which a pledge is created need be recorded. Each pledge,
agreement, lease, indenture, mortgage, and deed of trust made for the benefit or
security of any of the bonds of the authority shall continue to be effective until the
principal of and interest on the bonds for the benefit of which the same were made
has been fully paid or provision for such payment has been duly made. In the event
of default in such payment or in any agreements of the authority made as a part of
the contract under which the bonds were issued, whether contained in the
resolutions authorizing the bonds or in any trust indenture, mortgage, or deed of
trust executed as security therefor, said payment or agreement may be enforced by
suit, action in the nature of mandamus, appointment of a receiver in equity,
foreclosure of any mortgage or deed of trust, or any one or more of said remedies.

(3) In addition to the provisions of subsections (1) and (2) of this section,
bonds of the authority may be secured by a pooling of leases, loans, or mortgages
whereby the authority may assign its rights as lessor, lender, or mortgagee and
pledge rents, loan payments, or mortgage payments under two or more leases,
loans, or mortgages, with two or more participating educational institutions or
cultural institutions as lessees, borrowers, or mortgagors, respectively, upon such
terms as may be provided for in the resolutions of the authority or as may be
provided for in a trust indenture or mortgage or deed of trust authorized by the
authority.

Legislative History

Source: L. 81: Entire article added, p. 1105, � 1, effective July 1. L. 89: (3) amended, p. 990, � 6, effective April 8. L. 98: (3) amended, p. 606, � 9, effective May 4.