[§39A-260]  Security for special purpose
revenue bonds.  Special purpose revenue bonds shall be payable solely from
the revenues derived by the department from payments made to the department
under the project agreement, project agreements, or other supplemental
agreements entered into with respect to the project or projects for the
financing of which the special purpose revenue bonds were issued.  The special
purpose revenue bonds shall be secured solely by such revenues and by the
pledges and assignments authorized by this part.  Subject to the prior and
superior rights of outstanding bonds, claims, obligations, or mechanic's and
materialman's liens, all special purpose revenue bonds of the same issue shall
have a prior and paramount lien on the revenue derived from the project
agreement or agreements with respect to the project or projects for which the
bonds were issued.  The lien shall be over and ahead of all special purpose
revenue bonds of any issue payable from the revenues that may be subsequently issued
and over and ahead of any claims or obligations of any nature against the
revenues subsequently arising or subsequently incurred; provided that the right
and privilege may be reserved by the department in the trust indenture securing
an issue of special purpose revenue bonds to issue subsequently additional
special purpose revenue bonds, subject to legislative authorization of the
issue as provided in section 39A-257.  The department may also permit the
project party or another party on its behalf to incur debt, from time to time,
payable from the revenues derived from the project agreement on a parity with
the first issue of the special purpose revenue bonds.  Any subsequent issue of
special purpose revenue bonds and other debt issued or incurred in accordance
with the provisions of the trust indenture shall be secured equally and ratably
with the first issue of the special purpose revenue bond by a lien on the
revenues in accordance with this part and without priority based on the date of
sale, date of execution, or date of delivery.



Notwithstanding any other provisions herein,
all or part of the property constituting the project and all interest of the
project party in the project and the revenues of the project party therefrom
may be subjected to the present and future lien of any mortgage of the project
party securing the project party's bonds.  The rights of the department and any
trustee for the holders of the special purpose revenue bonds and the holders of
the special purpose revenue bonds in the project and the revenues therefrom may
be made subject to the prior lien of the project party's mortgage. [L 2002, c
257, pt of §1]