§ 23-19-16. Security for bonds or notes.
(a) The principal of and interest on any bonds or notes issued by the corporation may
be secured by a pledge of any revenues and receipts of the corporation, and may be
secured by a mortgage or other instrument covering all or any part of one or more
projects, including all or part of any additions, improvements, extensions to, or
enlargements of the projects thereafter made.
(b) Bonds or notes issued for the acquisition, construction, reconstruction, rehabilitation,
development, or improvement of one or more projects may also be secured by an assignment
of leases of, or mortgages on, or contracts of sale or other contracts or loan agreements
with regard to the project or projects, and by an assignment of the revenues, receipts,
payments, or repayments derived by the corporation from the leases, mortgages, sales
agreements, contracts, or loan agreements.
(c) The resolution under which the bonds or notes are authorized to be issued and any
mortgage, lease, sales agreement, contract, or loan agreement, or other instrument
may contain agreements and provisions respecting the maintenance of the covered projects,
the fixing and collection of rents, payments, or repayments or other revenues, including
moneys received in repayment of loans, and interest, the creation and maintenance
of special funds from rents or other revenues, and the rights and remedies available
in the event of default, all as the corporation shall deem advisable.
(d) Each pledge, agreement, mortgage, contract, or other instrument made for the benefits
or security of any of the bonds or notes of the corporation shall continue in effect
until the principal of and interest on the bonds or notes for the benefit of which
the instrument was made shall have been fully paid, or until provision shall have
been made for the payment in the manner provided in the resolutions under which the
bonds or notes were authorized.
(e) The corporation may provide in any proceedings under which the bonds or notes may
be authorized that any project or part of any project may be constructed, reconstructed,
rehabilitated, or improved by the corporation or any lessee, vendee, obligor, or any
designee of the corporation, and may also provide in the proceedings for the time
and manner of and requisitions for disbursements to be made for the cost of the construction,
and for all certificates and approvals of construction and disbursements that the
corporation shall deem necessary and provide for in the proceedings.
(f) Any resolution under which bonds or notes of the corporation are authorized to be
issued (and any trust indenture established thereby) may contain provisions for vesting
in a trustee or trustees properties, rights, powers, and duties in trust that the
corporation may determine, including any or all of the rights, powers, and duties
of the trustee appointed by the holders of any issue of bonds or notes pursuant to
§ 23-19-19, in which event the provisions of § 23-19-19 authorizing the appointment of a trustee by the holders of bonds or notes shall not
apply.
(g) Any pledge made by the corporation shall be valid and binding from the time it is
made. The money or property pledged and thereafter received by the corporation shall
immediately be subject to the lien of the pledge without physical delivery or further
act. The lien of the pledge shall be valid and binding against all parties having
a claim in tort, contract, or otherwise against the corporation, irrespective of whether
the parties have notice of the claim. Neither the resolution nor any instrument by
which a pledge is created need be recorded.