§ 35-75-113 — Security for bonds and notes

(1) (a) The principal and interest
on any bonds or notes issued by the authority may be secured by a trust indenture
by and between the authority and a corporate trustee, which may be any trust
company or bank located within or without this state having trust powers. Such
trust indenture or the resolution providing for the issuance of such obligations may
pledge or assign all or any part of the revenues or assets of the authority, including,
without limitation, temporary loans, contracts, agreements, and other security or
investment obligations, the fees or charges made or received by the authority, and
any other moneys received or due to be received by the authority.

(b) Such trust indenture or resolution may contain such provisions for
protecting and enforcing the rights and remedies of the holders of any of the bonds
or notes as may be reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority in relation to the purposes to
which proceeds of the bonds or notes may be applied, the disposition or pledging of
the revenues or assets of the authority, the terms and conditions for the issuance of
additional bonds or notes, and the custody, safeguarding, and application of all
moneys. Any such trust indenture or resolution may set forth the rights and
remedies of the holders of any bonds or notes and of the trustee and may restrict
the individual right of action by any such holders.

(c) In addition any such trust indenture or resolution may contain such other
provision as the authority may deem reasonable and proper for the security of the
holders of any bonds or notes. All expenses incurred in carrying out the provisions
of such indenture or resolution may be paid from the revenues or assets pledged or
assigned to the payment of the principal of and the interest on bonds or notes or
from any other funds available to the authority.

(2) (a) Any pledge made by the authority shall be valid and binding from the
time when the pledge is made. The revenues and moneys so pledged and thereafter
received by the authority shall immediately be subject to lien of such pledge
without any physical delivery or further act, and the lien of such pledge shall be
valid and binding against all parties having claims of any kind in tort, contract, or
otherwise against the authority, irrespective of whether such parties have notice of
such lien. Neither the resolution nor any other instrument by which a pledge is
created need be recorded. Each pledge, agreement, and indenture 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 are
made has been fully paid or provision for such payment duly made.

(b) In the event of default in any such payment or in any agreements of the
authority made as part of the contract under which the bonds were issued, whether
contained in the resolutions authorizing the bonds or in any trust indenture
executed as security for such bonds, said payment or agreement may be enforced
by suit, mandamus, or either of such remedies.

Legislative History

Source: L. 81: Entire article added, p. 1741, � 1, effective June 19.