[§39A-260]  Security for special purposerevenue bonds.  Special purpose revenue bonds shall be payable solely fromthe revenues derived by the department from payments made to the departmentunder the project agreement, project agreements, or other supplementalagreements entered into with respect to the project or projects for thefinancing of which the special purpose revenue bonds were issued.  The specialpurpose revenue bonds shall be secured solely by such revenues and by thepledges and assignments authorized by this part.  Subject to the prior andsuperior rights of outstanding bonds, claims, obligations, or mechanic's andmaterialman's liens, all special purpose revenue bonds of the same issue shallhave a prior and paramount lien on the revenue derived from the projectagreement or agreements with respect to the project or projects for which thebonds were issued.  The lien shall be over and ahead of all special purposerevenue bonds of any issue payable from the revenues that may be subsequently issuedand over and ahead of any claims or obligations of any nature against therevenues subsequently arising or subsequently incurred; provided that the rightand privilege may be reserved by the department in the trust indenture securingan issue of special purpose revenue bonds to issue subsequently additionalspecial purpose revenue bonds, subject to legislative authorization of theissue as provided in section 39A-257.  The department may also permit theproject 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 withthe first issue of the special purpose revenue bonds.  Any subsequent issue ofspecial purpose revenue bonds and other debt issued or incurred in accordancewith the provisions of the trust indenture shall be secured equally and ratablywith the first issue of the special purpose revenue bond by a lien on therevenues in accordance with this part and without priority based on the date ofsale, 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 theproject party in the project and the revenues of the project party therefrommay be subjected to the present and future lien of any mortgage of the projectparty securing the project party's bonds.  The rights of the department and anytrustee for the holders of the special purpose revenue bonds and the holders ofthe special purpose revenue bonds in the project and the revenues therefrom maybe made subject to the prior lien of the project party's mortgage. [L 2002, c257, pt of §1]