§ 39-16-12. Covenants permissible in bond resolution.
Any resolution or resolutions authorizing any bonds or any issue of bonds may contain
provisions that shall be a part of the contract with the holders of the bonds thereby
authorized, as to:
(1) Pledging all or any part of the money, earnings, income, and revenues derived from
all or any part of the property of the authority to secure the payment of any bonds
or of any issue of bonds subject to such agreements with bondholders as may then exist;
(2) The rates to be fixed and the charges to be collected and the amounts to be raised
in each year, and the use and disposition of the earnings and other revenues;
(3) The setting aside of reserves and the creation of sinking funds and the regulation
and disposition thereof;
(4) Limitations on the right of the authority to restrict and regulate the use of the
properties in connection with which the bonds are issued;
(5) Limitations on the purposes to which the proceeds of sale of any issue of bonds may
be applied;
(6) Limitations on the issuance of additional bonds, including refunding bonds and the
terms upon which additional bonds may be issued and secured;
(7) The procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent thereto,
and the manner in which consent may be given;
(8) The creation of special funds into which any earnings or revenues of the authority
may be deposited, and the investment of the funds;
(9) The appointment of a fiscal agent and the determination of its powers and duties;
(10) Limitations on the power of the authority to sell or otherwise dispose of its properties;
(11) The preparation of annual budgets by the authority and the employment of consulting
engineers and auditors;
(12) The rights and remedies of bondholders in the event of failure on the part of the
authority to perform any agreement;
(13) Covenanting that as long as any bonds are outstanding the authority shall use its
best efforts to establish and maintain its rates and charges adequate at all times
to pay and provide for all operating expenses of the authority, all payments of principal,
redemption premium, if any, and interest on bonds, notes, or other evidences of indebtedness
of or assumed by the authority, all renewals, repairs, or replacements to the property
of the authority deemed necessary, and all other amounts that the authority may by
law, resolution, or contract be obligated to pay. On or before the last day of the
authority's fiscal year, the authority shall review the adequacy of its rates and
charges to satisfy the above requirements for the next succeeding fiscal year. If
the review indicates that the rates and charges are, or are likely to be, insufficient
to meet the requirements of this chapter, the authority shall promptly take such steps
as are permitted by law and as are necessary to cure or avoid the deficiency, including
but limited to, making an emergency request to the public utilities commission to
raise its rates and charges;
(14) Any other matters, of like or different character that in any way affect the security
or protection of the bonds.