§ 8-21-9-26 — Trust agreement to secure bonds

(a) In the discretion of the department, any
bonds issued under the provisions of this chapter may be secured by a
trust agreement between the department and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within the state.
(b) An executive order issued by the commissioner providing for the
issuance of bonds for any airport facility or airport facilities, and any
trust agreement pursuant to which such bonds are issued, may pledge
or assign:
(1) all or any portion of the revenues received or to be received by
the department from an airport facility or airport facilities except
the part as may be necessary to pay the cost of the operation,
maintenance, and repair of the airport facility or airport facilities
to the extent airport facility or airport facilities and to provide
reserves therefor and depreciation reserves if and to the extent
required by any bond resolution adopted or trust agreement
executed by the department; and
(2) the net revenues of the department from other airport facilities
to the extent the net revenues are not otherwise pledged or
assigned.
The department shall not convey or mortgage any airport, airport
facility or any part thereof.
(c) In authorizing the issuance of bonds for any particular airport
facility or airport facilities undertaken in connection with the
development of an airport, the department may limit the amount of
bonds that may be issued as a first lien and charge against the revenues
pledged to the payment of the bonds. The department may authorize the
issuance from time to time of additional bonds secured by the same lien
to provide funds for the completion of the airport facility or airport
facilities on account of which the original bonds were issued, or to
provide funds to pay the cost of additional airport facilities undertaken
in connection with the development of the airport, or for both purposes.
The additional bonds shall be issued on terms and conditions as
provided in the resolution authorizing the issuance of the bonds or in
the trust agreement or a supplemental agreement and may be secured
equally and ratably without preference, priority, or distinction with the
original issue of bonds or may be made junior.
(d) Any pledge or assignment made by the department is valid and
binding from the time that the pledge or assignment is made, and the
revenues pledged and received by the department 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 is valid and
binding against all parties having claims of any kind in tort, contract or
otherwise against the department whether or not the parties have
notice.
(e) Neither the resolution nor any trust agreement by which a pledge
is created or assignment made need be filed or recorded except in the
records of the department. A trust agreement or resolution providing
for the issuance of bonds may contain 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 covenants
setting forth the duties of the department in relation to the acquisition
of property and the construction, improvements, maintenance, repair,
operation, and insurance of the airport facility or airport facilities in
connection with which such bonds shall have been authorized, the rates
of fees, tolls, rentals, or other charges to be collected for the use of the
airport facility or airport facilities, and the custody, safeguarding, and
application of all money and provisions for the employment of
consulting engineers in connection with the construction or operation
of such airport facility or airport facilities.
(f) It is lawful for any bank or trust company incorporated under the
laws of the state that may act as depository of the proceeds of bonds or
other funds of the department to furnish indemnifying bonds or to
pledge securities as required by the department. A trust agreement may
set forth the rights and remedies of the bondholders and of the trustee
and may restrict the individual right of action by bondholders as is
customary in trust agreements or trust indentures securing bonds or
debentures of private corporations. In addition, a trust agreement may
contain other provisions as the department may deem reasonable and
proper for the security of the bondholders. All expenses incurred in
carrying out the provisions of a trust agreement may be treated as a part
of the cost of the operation of the airport facility or airport facilities.
Formerly: Acts 1971, P.L.105, SEC.2. As amended by Acts
1980, P.L.74, SEC.357; P.L.18-1990, SEC.162.