§ 5-1-4-15 — Trust agreement to secure bonds

In the discretion of any authority any bonds
issued under the provisions of this chapter may be secured by a trust
agreement by and between such authority and a corporate trustee or
trustees, which may be any trust company or bank having the powers
of a trust company within or without the state. The trust agreement or
the resolution providing for the issuance of bonds may pledge or assign
the revenues to be received or proceeds of any contract or contracts
pledged and may convey or mortgage the project or any portion of the
project. Any pledge or assignment made by an authority pursuant to
this section shall be valid and binding from the time that the pledge or
assignment is made, and the revenues pledged and received by the
authority shall immediately be subject to the lien of the pledge or
assignment without physical delivery or further act. The lien of the
pledge or assignment shall be valid and binding against all parties
having claims of any kind in tort, contract, or otherwise against the
authority irrespective of whether the parties have notice. Neither the
resolution nor any trust agreement by which a pledge is created or
assignment made need be filed or recorded in any public records in
order to perfect a lien against third parties except that a copy of the
records shall be filed in the records of the authority. The trust
agreement or resolution providing for the issuance of bonds may
contain such provisions for protecting and enforcing the rights and
remedies of the bondholders as may be reasonable and proper and not
in violation of law, including particularly provisions as have been
specifically authorized to be included in any resolution or resolutions
of an authority authorizing bonds. Any bank or trust company
incorporated under the laws of this state which may act as depository
of the proceeds of bonds or of revenues or other moneys may furnish
indemnifying bonds or pledge securities as may be required by an
authority. Any trust agreement may set forth the rights and remedies of
the bondholders and of the trustee or trustees, and may restrict the
individual right of action by bondholders. Any trust agreement or
resolution may contain other provisions as the authority may deem
reasonable and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of the trust agreement or
resolution may be treated as a part of the cost of the operation of a
project.
Formerly: Acts 1971, P.L.41, SEC.1; Acts 1972, P.L.10, SEC.1.
As amended by P.L.136-2018, SEC.17; P.L.10-2019, SEC.8.