5.
(a)In the discretion of the board, any bonds
issued under the provisions of this chapter may be secured by a trust
agreement by and between the board and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within this state. Any resolution adopted by the board
providing for the issuance of revenue bonds and any trust agreement
pursuant to which the bonds are issued may pledge or assign, subject
only to valid prior pledges, all or any portion of the revenues received
or to be received by the board, except such part as may be necessary to
pay the cost of the board's administrative expenses, operation,
maintenance, and repair of the railroad, and to provide reserves
required by any bond resolution adopted or trust agreement executed
by the boar
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5. (a) In the discretion of the board, any bonds
issued under the provisions of this chapter may be secured by a trust
agreement by and between the board and a corporate trustee, which
may be any trust company or bank having the powers of a trust
company within this state. Any resolution adopted by the board
providing for the issuance of revenue bonds and any trust agreement
pursuant to which the bonds are issued may pledge or assign, subject
only to valid prior pledges, all or any portion of the revenues received
or to be received by the board, except such part as may be necessary to
pay the cost of the board's administrative expenses, operation,
maintenance, and repair of the railroad, and to provide reserves
required by any bond resolution adopted or trust agreement executed
by the board.
(b) In authorizing the issuance of bonds, the board may limit the
amount of bonds that may be issued as a first lien against the amounts
pledged to the payment of those bonds, or the board may authorize the
issuance from time to time thereafter of additional bonds secured by the
same lien. Additional bonds shall be issued on such terms and
conditions as may be provided in the bond resolution or resolutions
adopted by the board and in the trust agreement or any agreement
supplemental to the trust agreement. Additional bonds may be secured
equally and ratably without preference, priority, or distinction with the
original issue of bonds, or may be made junior to the original issue of
bonds.
(c) Any pledge or assignment made by the board under this section
is valid and binding from the time that the pledge or assignment is
made, and the amounts so pledged and thereafter received by the board
are immediately subject to the lien of the pledge or assignment without
physical delivery of those amounts 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 board or district
irrespective of whether these parties have notice of the lien. Neither the
resolution nor any trust agreement by which a pledge is created or an
assignment made need be filed or recorded in order to perfect the
resulting lien against third parties. However, a copy of the pledge or
assignment shall be filed in the records of the board.
(d) Any 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. The provisions may include, but are
not limited to, covenants setting forth the duties of the board in relation
to:
(1) the acquisition of property;
(2) the custody, safeguarding, investment, and application of all
moneys received or to be received by the board of trustees;
(3) the establishment of funds, reserves, and accounts;
(4) the construction, improvement, maintenance, repair,
operation, and insurance of the railroad project in connection with
which the bonds shall have been authorized; and
(5) the rates of fees, tolls, rentals, or other charges to be collected
for the use of the railroad project.
(e) It is lawful for any bank or trust company incorporated under the
laws of the state, and any national banking association which may act
as depository of the proceeds of bonds or other funds of the board, to
furnish such indemnifying bonds or to pledge such securities as may be
required by the board.
(f) Any trust agreement entered into under this section 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, such a trust agreement may contain
such other provisions as the board may deem reasonable and proper for
the security of the bondholders.
(g) All expenses incurred in carrying out the provisions of a trust
agreement entered into under this section may be paid from the
amounts distributed to the district from the electric rail service fund,
from the bond proceeds, or from revenues.
As added by Acts 1981, P.L.67, SEC.8. Amended by
P.L.64-1984, SEC.5.