§ 42-64-17. Security for bonds or notes.
(a) The principal of and interest on any bonds or notes issued by the Rhode Island commerce
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 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 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 those leases, mortgages, sales agreements,
or loan agreements.
(c) The resolution under which the bonds or notes are authorized to be issued and any
mortgage, lease, sales agreement, or loan agreement, or other instrument may contain
agreements and provisions respecting the maintenance of the projects covered thereby,
the fixing and collection of rents, payments or repayments or other revenues, including
moneys received in repayment of loans, and interest on the loans, 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, or other instrument made for the benefit or security
of any of the bonds or notes of the corporation shall be valid and binding from the
time the pledge is made and shall continue in effect until the principal of and interest
on the bonds or notes for the benefit of which the pledge was made has been fully
paid, or until provision has been made for the payment in the manner provided in the
resolutions under which those bonds or notes were authorized. The revenues, moneys,
or property pledged by the corporation shall immediately be subject to the lien of
that pledge without any physical delivery thereof or further act, and the lien of
the pledge shall be valid and binding as against all parties having claims of any
kind in tort, contract, or otherwise against the corporation, irrespective of whether
the parties have notice thereof. Neither the resolution nor any other instrument by
which a pledge is created need be recorded.
(e) The corporation may provide in any proceedings under which bonds or notes may be authorized
that any project or part of a 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 those proceedings for the time and manner
of and requisitions for disbursements to be made for the cost of the construction,
and for any certificates and approvals of construction and disbursements that the
corporation shall deem necessary and provide for in those 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 those 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
§ 42-64-25, in which event the provisions of § 42-64-25 authorizing the appointment of a trustee by holders of bonds or notes shall not apply.