§ 39-18-8. Trust agreement — Other security for bonds.
Bonds issued under the provisions of this chapter may be secured by trust agreement
by and between the authority and a corporate trustee, which may be any trust company
or bank having the powers of a trust company within or without the state. The trust
agreement or the resolution providing for the issuance of the bonds may pledge or
assign the revenues to be received, but shall not convey or mortgage any transit property
or any part thereof. The trust agreement or resolution providing for the issuance
of the bonds may contain such provisions for protecting and enforcing the rights and
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§ 39-18-8. Trust agreement — Other security for bonds.
Bonds issued under the provisions of this chapter may be secured by trust agreement
by and between the authority and a corporate trustee, which may be any trust company
or bank having the powers of a trust company within or without the state. The trust
agreement or the resolution providing for the issuance of the bonds may pledge or
assign the revenues to be received, but shall not convey or mortgage any transit property
or any part thereof. The trust agreement or resolution providing for the issuance
of the 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, including, without limitation, covenants setting forth the duties of the authority
in relation to the custody, safeguarding, and application of all moneys, and conditions
or limitations with respect to the issuance of additional bonds. It shall be lawful
for any bank or trust company incorporated under the laws of the state that may act
as depositary of the proceeds of bonds or of revenues to furnish such indemnifying
bonds or to pledge such securities as may be required by the authority. Any 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. In addition to the
foregoing, any trust agreement or resolution may contain other provisions as the authority
may deem reasonable and proper for the security of the bondholders. All expenses incurred
in carrying out the provisions of the trust agreement or resolution may be treated
as a part of the authority's cost of operation and maintenance. Bonds may also be
secured by insurance or by letters of credit, or in any other manner deemed appropriate
by the authority not inconsistent with the provisions of this chapter, or may be unsecured.