§39A‑40  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 or other supplemental agreements entered into withrespect to the project, and shall be secured solely by such revenues and by thepledges and assignments authorized by this part.  All special purpose revenuebonds of the same issue, subject to the prior and superior rights ofoutstanding bonds, claims, obligations, or mechanic's and materialman's liens,shall have a prior and paramount lien on the revenues derived from the projectagreement with respect to the project, for which the bonds have been issued,over and ahead of all special purpose revenue bonds of any issue payable fromthe revenues which may be subsequently issued and over and ahead of any claimsor obligations of any nature against the revenues subsequently arising orsubsequently incurred; provided that the right and privilege may be reserved bythe department in the trust indenture securing an issue of special purposerevenue bonds to subsequently issue additional special purpose revenue bonds,subject to legislative authorization of the issue as provided in section 39A‑37,or to permit the project party or another party on its behalf to incur debt,from time to time, payable from the revenues derived from such projectagreement on a parity with the first issue of the special purpose revenue bondsand any subsequent issue of special purpose revenue bonds and other debt issuedor incurred in accordance with the provisions of the trust indenture shall besecured equally and ratably with the first issue of the special purpose revenuebond without priority by reason of the date of sale, date of execution, or dateof delivery, by a lien on the revenues in accordance with this part.

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, and the rights of the department andany trustee for the holders of the special purpose revenue bonds and theholders of the special purpose revenue bonds in the project and the revenuestherefrom may be made subject to the prior lien of the project party'smortgage. [L 1980, c 255, pt of §2; am L 1982, c 153, §2]