Trust Agreement, or Resolution, on Rights
of Bondholders. In the discretion of the governing body of the issuer,
any bonds issued under the provisions of this chapter may be secured
by a trust agreement by and between the issuer and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the state. That trust agreement, or the
resolution providing for the issuance of bonds, may contain provisions
for protecting and enforcing the rights and remedies of the bondholders
and of the trustee as may be reasonable and proper and not in violation
of law, and may restrict the individual right of action by bondholders.
The trust agreement or the resolution providing for the issuance of
bonds may contain covenants including, but not limited to
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Trust Agreement, or Resolution, on Rights
of Bondholders. In the discretion of the governing body of the issuer,
any bonds issued under the provisions of this chapter may be secured
by a trust agreement by and between the issuer and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the state. That trust agreement, or the
resolution providing for the issuance of bonds, may contain provisions
for protecting and enforcing the rights and remedies of the bondholders
and of the trustee as may be reasonable and proper and not in violation
of law, and may restrict the individual right of action by bondholders.
The trust agreement or the resolution providing for the issuance of
bonds may contain covenants including, but not limited to, the
following:
(1) the pledge of all or any part of the revenues derived or to be
derived from the project or projects to be financed by the bonds
or from the electric system or facilities of a municipality or joint
agency, or in the case of a joint agency from the revenues
received from the municipalities;
(2) the rents, rates, fees and charges to be established, maintained
and collected, and the use and disposal of revenues, gifts, grants
and funds received or to be received by the municipality or joint
agency;
(3) the setting aside of reserves and the investment, regulation and
disposition of reserves;
(4) the custody, collection, securing, investment, and payment of
any moneys held for the payment of bonds;
(5) limitations or restrictions on the purposes to which the
proceeds of sale of bonds then or thereafter to be issued may be
applied;
(6) limitations or restrictions on the issuance of additional bonds;
the terms upon which additional bonds may be issued and
secured; or the refunding of outstanding or other bonds;
(7) the procedure, if any, by which the terms of any contract with
bondholders may be amended, the percentage of bonds the
bondholders of which must consent to an amendment, and the
manner in which consent may be given;
(8) events of default and the rights and liabilities arising upon
default, the terms and conditions upon which bonds issued under
this chapter shall become or may be declared due before maturity,
and the terms and conditions upon which the declaration and its
consequences may be waived;
(9) the preparation and maintenance of a budget;
(10) the retention or employment of consulting engineers,
independent auditors, and other technical consultants;
(11) limitations on or the prohibition of free service to any person,
firm, limited liability company, or corporation, public or private;
(12) the acquisition and disposal of property, provided that no
project or part thereof may be mortgaged by such trust agreement
or resolution;
(13) provisions for insurance and for accounting reports and for
their inspection and audit; and
(14) the continuing operation and maintenance of the project.
As added by Acts 1980, P.L.68, SEC.1. Amended by
P.L.8-1993, SEC.117.