§ 45-37.1-7. Security for bonds and notes — Construction and acquisition of projects.
(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 deed of trust or trust indenture covering all or any part
of a project, including any additions, improvements, extensions to or enlargements
of any projects thereafter made. The bonds or notes may also be secured by an assignment
of the lease or other financing agreement, with respect to any project for the construction
and acquisition of which the bonds or notes are issued, and by an assignment of the
revenues and receipts derived by the corporation from the lease or other financing
agreement. The resolution under which the bonds or notes are authorized to be issued
and the mortgage, deed of trust, trust indenture, lease, or other financing agreement
may contain agreements and provisions respecting the maintenance of the projects covered
by them, the fixing and collection of rents or other revenues for any portions of
them leased or sold by the corporation to others, the creation and maintenance of
special funds from those revenues, and the rights and remedies available in the event
of default, all as the corporation deems advisable and not in conflict with the provisions
hereof. Each pledge, agreement, mortgage, deed of trust, and trust indenture made
for the benefit or security of any of the bonds or notes of the corporation are valid
and binding from the time the pledge is made, and shall continue to be in effect until
the principal of and interest on the bonds or notes for the benefit of which the bonds
or notes were made have been fully paid, or until provision has been made for payment
in the manner provided in the resolution or resolutions under which the bonds or notes
may be authorized. The revenues, moneys, or property pledged by the corporation are
immediately subject to the lien of a pledge without any physical delivery or further
act, and the lien of the pledge is valid and binding 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. In the event of a default in the payment
of the principal of and interest on any bonds or notes or in any agreements of the
corporation made as a part of the contract under which the bonds or notes are issued,
whether contained in the proceedings authorizing the bonds or notes or in any instrument
executed as security for them, the rights of affected bondholders or noteholders may
be enforced by mandamus, the appointment of a receiver in equity, or by foreclosure
of the mortgage, deed of trust, or other instrument, or any one or more of those remedies
or any other remedy provided in the proceedings.
(b) The corporation may provide, in any proceedings under which bonds or notes may be
authorized, that any project, or part thereof, or any addition, improvement, extension,
or enlargement, may be constructed by the corporation or the lessee or other occupant
of the project or any designee of the corporation, the lessee, or other occupant of
the project, or of any of them, and may also provide in the proceedings for the time
and manner of and requisites for disbursements to be made for the cost of the construction
and acquisition, and for all the certificates and approvals of construction and disbursements
as the corporation deems necessary and provides for in the proceedings.