§ 19 — Security for bonds or notes; construction and acquisition of projects

§ 19. Security for bonds or notes; construction and acquisition of\nprojects. (1) The principal of and interest on any bonds or notes issued\nby the corporation may be secured by a pledge of any revenues and\nreceipts of the corporation and may be secured by a mortgage or other\ninstrument covering all or any part of a project, including any\nadditions, improvements, extensions to or enlargements of any projects\nthereafter made.\n (2) Bonds or notes issued for the acquisition, construction,\nreconstruction, rehabilitation, or improvement of a project may also be\nsecured by an assignment of any lease of or mortgage on such project and\nby an assignment of the revenues and receipts derived by the corporation\nfrom any such lease or mortgage.\n (3) The resolution under which the bonds or notes are authorized to be\nissued and any such mortgage, lease or other instrument may contain\nagreements and provisions respecting the maintenance of the projects\ncovered thereby, the fixing and collection of rents or other revenues\ntherefrom, including monies received in repayment of mortgage loans, and\ninterest thereon, the creation and maintenance of special funds from\nsuch rents or other revenues and the rights and remedies available in\nthe event of default, all as the corporation shall deem advisable.\n (4) Each pledge, agreement, mortgage or other instrument made for the\nbenefit or security of any of the bonds or notes of the corporation\nshall continue effective until the principal of and interest on the\nbonds or notes for the benefit of which the same were made shall have\nbeen fully paid, or until provision shall have been made for such\npayment in the manner provided in the resolution or resolutions under\nwhich the same may be authorized.\n (5) The corporation may provide in any proceedings under which bonds\nor notes may be authorized that any project or part thereof may be\nconstructed, reconstructed, rehabilitated or improved by the\ncorporation, any subsidiary, or any lessee or any designee of the\ncorporation, and may also provide in such proceedings for the time and\nmanner of and requisites for disbursements to be made for the cost of\nsuch construction, and for all such certificates and approvals of\nconstruction and disbursements as the corporation shall deem necessary\nand provide for in such proceedings.\n (6) Any resolution or resolutions or trust indenture or indentures\nunder which bonds or notes of the corporation are authorized to be\nissued may contain provisions for vesting in a trustee or trustees such\nproperties, rights, powers and duties in trust as the corporation may\ndetermine which may include any or all of the rights, powers and duties\nof the trustee appointed by the holders of any issue of notes or bonds\npursuant to section twenty-seven of this act, in which event the\nprovisions of said section twenty-seven authorizing the appointment of a\ntrustee by such holders of bonds or notes shall not apply.\n (7) It is the intention hereof that any pledge or assignment for\nsecurity made by the corporation shall be valid and binding from the\ntime when the same is made; that the monies or property so pledged or\nassigned and then held or thereafter received by the corporation shall\nimmediately be subject to the lien or security interest of such pledge\nor assignment without any physical delivery thereof or further act; and\nthat the lien or security interest of any such pledge or assignment\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the corporation,\nirrespective of whether such parties have notice thereof. Neither the\nresolution nor any other instrument by which any such pledge or\nassignment is created need be recorded, and no filing with respect to\nsuch pledge or assignment need be made under the uniform commercial\ncode.\n