§39-68  Duties of the director. (a)  The director of finance, when requested by the department, shall renderfull and complete assistance to any department in the preparation and sale ofrevenue bonds issued pursuant to this part.  The director of finance shall bethe fiscal agent of the department for the payment of all principal andinterest, and for the transfer of revenue bonds.  Sections 36-3 and 39-13,relating to the appointment by the director of finance of other fiscal agentsand transfer agents, and to the status of funds held by these fiscal agents, tothe extent that they may appropriately be applied, shall be deemed incorporatedin this part.

(b)  The director of finance shall cause to beset up in the treasury of the State suitable accounts for the deposit of allrevenues of the undertaking or loan program, and for the payment of all revenuebonds and the interest thereon and for all other payments provided or requiredby this part, and for the holding of all reserves created pursuant to thispart.

(c)  If deemed necessary or advisable by thedepartment, the director of finance may appoint a national or state bank ortrust company, within or without the State, to serve as trustee for the holdersof the revenue bonds, and the department may enter into a trust indenture ortrust agreement or indenture of mortgage with the trustee.  The trustee may beauthorized by the department to receive and receipt for, hold and administerthe proceeds of the revenue bonds and to apply the same to the purposes forwhich the revenue bonds are issued, or to receive and receipt for, hold andadminister all or part of the revenue derived by the department from theundertaking or loan program and to apply the revenue to the payment of theprincipal of and interest on the revenue bonds, or both.

In the event that the trustee shall beappointed, any trust indenture or trust agreement or indenture of mortgageentered into by the department with the trustee may contain whatever covenantsand provisions authorized by this part as may be deemed necessary by thedepartment, and any covenants or provisions so contained need not be includedin a resolution adopted or certificate issued pursuant to this part, but may beincorporated by general reference thereto in the resolution or certificate. Any resolution or certificate, trust indenture or trust agreement or indentureof mortgage adopted, issued, or entered into by the department pursuant to thispart may also contain any provisions required for the qualification thereof underthe federal Trust Indenture Act of 1938 (15 United States Code §77aaa), asamended, or deemed necessary or desirable by the department for the securityand protection of the holders of the revenue bonds or to carry out the purposesof this part.  The department may pledge and assign to the trustee all or anypart of the revenue of the undertaking or loan program for the benefit of theholders of the revenue bonds.

(d)  If the director of finance shall appoint atrustee for the holders of the revenue bonds as provided in subsection (c),then notwithstanding subsection (a), the director of finance may elect not toserve as fiscal agent for the payment of the principal and interest, and forthe purchase, registration, transfer, exchange, and redemption of the revenuebonds, or may elect to limit the functions the director of finance shallperform as fiscal agent.

The director of finance may appoint the trusteeto serve as fiscal agent, and may authorize and empower the trustee to performsuch functions with respect to the payment, purchase, registration, transfer,exchange, and redemption, as the director of finance may deem necessary,advisable, or expedient, including without limitation the holding of therevenue bonds and coupons which have been paid and the supervision andconducting of the destruction thereof in accordance with sections 40-10 and40-11.  Nothing in this subsection shall be a limitation upon the powersgranted to the director of finance in sections 36-3 and 39-13 and subsection(a) to appoint the trustee or others as fiscal agents, paying agents, andregistrars for the revenue bonds or to authorize and empower those fiscalagents, paying agents, and registrars to perform the functions referred to insubsection (a).  The intent of this subsection is to permit the director offinance, at the director of finance's election, not to serve as fiscal agentfor the revenue bonds or to limit the functions the director of finance shallperform as fiscal agent, as the director of finance may deem necessary,advisable, or expedient.  [L 1988, c 28, pt of §3]