§ 4022 — Trust indenture

(a) At the discretion of the issuing officer each and any issue of such bonds may be secured by a trust indenture by and between the issuing officer and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without this State.

(b) Such trust indenture may pledge or assign the revenues of DSHA but shall not create a security interest in or convey or mortgage any real property owned, operated or maintained by DSHA. Either the resolution providing for the issuance of the bonds or such trust indenture may contain such provisions specifying, defining, protecting and enforcing the rights and not in violation of law, include covenants setting forth the duties of DSHA in relation to the acquisition, construction, improvement, maintenance, operation, repair and insurance of any facilities or additions thereto, and the custody, safeguarding and application of all moneys.

(c) It shall be lawful for any bank or trust company incorporated under the laws of this State to act as such depository and to furnish such indenture bonds or to pledge such securities as may be required by DSHA. Such indenture may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporation.

(d) In addition to the foregoing, such trust indenture may contain such other provisions as the issuing officer may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust indenture may be treated as a part of the cost of maintenance, operation and repairs of any facility to which such indenture is related or may be paid out of the revenues of DSHA.

Legislative History

71 Del. Laws, c. 357, § 6