§ 7-65-112 — Security for bonds

Tennessee § 7-65-112

• Jurisdiction: Tennessee
• Title: 7

Text

The principal of and interest on any bonds issued by the authority shall be secured by a pledge of the revenues and receipts out of which the principal and interest shall be made payable, and may be secured by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made. The resolution under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance or operation of the projects covered by the resolution, the fixing and collection of rents for any portions of the projects leased by the authority to others, the creation and maintenance of special funds from such revenues, limitations on the issuance of additional bonds and the rights and remedies available in the event of default, all as the board of directors shall deem advisable and not in conflict with this section. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the pledge, agreement, mortgage and deed of trust were made shall have been fully paid or adequate provision shall be made for the payment of the principal and interest. In the event of default in such payment or in any agreements of the authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust executed as security for the bonds, the payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity or by foreclosure of any such mortgage and deed of trust or any one (1) or more of the remedies.

Legislative History

Acts 1980, ch. 826, § 12.