In the discretion of the Board and subject to the approval of theDirector of the Budget, each or any issue of revenue bonds may be secured by atrust agreement by and between the Board and a corporate trustee, which may beany trust company or bank having the powers of a trust company within orwithout the State. The resolution authorizing the issuance of the bonds or suchtrust agreement may pledge to the extent necessary the revenues to be receivedfrom any project or projects at any institution and from any similar existingfacilities described in G.S. 116‑175(4) at the same institution, inexcess of amounts now charged to each occupant of such project, but shall notconvey or mortgage any such project or existing facilities, and may containsuch provisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Board in relation to theacquisition or construction of such project or projects and in relation to themaintenance, repair, operation and insurance of such project or projects andsuch existing facilities, the fixing and revising of rentals and other charges;and, the custody, safeguarding and application of all moneys, and for theemployment of consulting engineers or architects in connection with suchacquisition, construction or operation. Notwithstanding the provisions of anyother law the Board may carry insurance on any such project or projects in suchamounts and covering such risks as it may deem advisable. It shall be lawfulfor any bank or trust company incorporated under the laws of the State of NorthCarolina which may act as depository of the proceeds of bonds or of revenues tofurnish such indemnifying bonds or to pledge such securities as may be requiredby the Board. Such resolution or trust agreement may set forth the rights andremedies of the bondholders and of the trustees, if any, and may restrict theindividual right of action by bondholders. Such resolution or trust agreementmay contain such other provisions in addition to the foregoing as the Board maydeem reasonable and proper for the security of the bondholders.
The Board may provide for the payment of the proceeds of the sale ofthe bonds and the revenues of any project or existing facilities or partthereof to such officer, board or depository as it may designate for thecustody thereof, and for the method of disbursement thereof, with suchsafeguards and restrictions as it may determine. All expenses incurred incarrying out the provisions of such resolution or trust agreement may betreated as a part of the cost of operation.
All pledges of revenues under the provisions of this Article shall bevalid and binding from the time when such pledges are made. All such revenuesso pledged and thereafter received by the Board shall immediately be subject tothe lien of such pledges without any physical delivery thereof or furtheraction, and the lien of such pledges shall be valid and binding as against allparties having claims of any kind in tort, contract or otherwise against theBoard, irrespective of whether such parties have notice thereof. (1957, c. 1131, s. 4; 1983, c. 577, s. 6.)
In the discretion of the Board and subject to the approval of theDirector of the Budget, each or any issue of revenue bonds may be secured by atrust agreement by and between the Board and a corporate trustee, which may beany trust company or bank having the powers of a trust company within orwithout the State. The resolution authorizing the issuance of the bonds or suchtrust agreement may pledge to the extent necessary the revenues to be receivedfrom any project or projects at any institution and from any similar existingfacilities described in G.S. 116‑175(4) at the same institution, inexcess of amounts now charged to each occupant of such project, but shall notconvey or mortgage any such project or existing facilities, and may containsuch provisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Board in relation to theacquisition or construction of such project or projects and in relation to themaintenance, repair, operation and insurance of such project or projects andsuch existing facilities, the fixing and revising of rentals and other charges;and, the custody, safeguarding and application of all moneys, and for theemployment of consulting engineers or architects in connection with suchacquisition, construction or operation. Notwithstanding the provisions of anyother law the Board may carry insurance on any such project or projects in suchamounts and covering such risks as it may deem advisable. It shall be lawfulfor any bank or trust company incorporated under the laws of the State of NorthCarolina which may act as depository of the proceeds of bonds or of revenues tofurnish such indemnifying bonds or to pledge such securities as may be requiredby the Board. Such resolution or trust agreement may set forth the rights andremedies of the bondholders and of the trustees, if any, and may restrict theindividual right of action by bondholders. Such resolution or trust agreementmay contain such other provisions in addition to the foregoing as the Board maydeem reasonable and proper for the security of the bondholders.
The Board may provide for the payment of the proceeds of the sale ofthe bonds and the revenues of any project or existing facilities or partthereof to such officer, board or depository as it may designate for thecustody thereof, and for the method of disbursement thereof, with suchsafeguards and restrictions as it may determine. All expenses incurred incarrying out the provisions of such resolution or trust agreement may betreated as a part of the cost of operation.
All pledges of revenues under the provisions of this Article shall bevalid and binding from the time when such pledges are made. All such revenuesso pledged and thereafter received by the Board shall immediately be subject tothe lien of such pledges without any physical delivery thereof or furtheraction, and the lien of such pledges shall be valid and binding as against allparties having claims of any kind in tort, contract or otherwise against theBoard, irrespective of whether such parties have notice thereof. (1957, c. 1131, s. 4; 1983, c. 577, s. 6.)
In the discretion of the Board and subject to the approval of theDirector of the Budget, each or any issue of revenue bonds may be secured by atrust agreement by and between the Board and a corporate trustee, which may beany trust company or bank having the powers of a trust company within orwithout the State. The resolution authorizing the issuance of the bonds or suchtrust agreement may pledge to the extent necessary the revenues to be receivedfrom any project or projects at any institution and from any similar existingfacilities described in G.S. 116‑175(4) at the same institution, inexcess of amounts now charged to each occupant of such project, but shall notconvey or mortgage any such project or existing facilities, and may containsuch provisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Board in relation to theacquisition or construction of such project or projects and in relation to themaintenance, repair, operation and insurance of such project or projects andsuch existing facilities, the fixing and revising of rentals and other charges;and, the custody, safeguarding and application of all moneys, and for theemployment of consulting engineers or architects in connection with suchacquisition, construction or operation. Notwithstanding the provisions of anyother law the Board may carry insurance on any such project or projects in suchamounts and covering such risks as it may deem advisable. It shall be lawfulfor any bank or trust company incorporated under the laws of the State of NorthCarolina which may act as depository of the proceeds of bonds or of revenues tofurnish such indemnifying bonds or to pledge such securities as may be requiredby the Board. Such resolution or trust agreement may set forth the rights andremedies of the bondholders and of the trustees, if any, and may restrict theindividual right of action by bondholders. Such resolution or trust agreementmay contain such other provisions in addition to the foregoing as the Board maydeem reasonable and proper for the security of the bondholders.
The Board may provide for the payment of the proceeds of the sale ofthe bonds and the revenues of any project or existing facilities or partthereof to such officer, board or depository as it may designate for thecustody thereof, and for the method of disbursement thereof, with suchsafeguards and restrictions as it may determine. All expenses incurred incarrying out the provisions of such resolution or trust agreement may betreated as a part of the cost of operation.
All pledges of revenues under the provisions of this Article shall bevalid and binding from the time when such pledges are made. All such revenuesso pledged and thereafter received by the Board shall immediately be subject tothe lien of such pledges without any physical delivery thereof or furtheraction, and the lien of such pledges shall be valid and binding as against allparties having claims of any kind in tort, contract or otherwise against theBoard, irrespective of whether such parties have notice thereof. (1957, c. 1131, s. 4; 1983, c. 577, s. 6.)
