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28j-22
28J.22 BONDS MAY BE SECURED BY TRUST AGREEMENT.
1. In the discretion of the port authority, a port authority
revenue bond issued under this chapter may be secured by a trust
agreement between the port authority and a corporate trustee that may
be any trust company or bank having the powers of a trust company
within this or any other state.
2. The trust agreement may pledge or assign revenues of the port
authority to be received for payment of the revenue bonds. The trust
agreement or any resolution providing for the issuance of revenue
bonds may contain provisions for protecting and enforcing the rights
and remedies of the bondholders as are reasonable and proper and not
in violation of law, including covenants setting forth the duties of
the port authority in relation to the acquisition of property, the
construction, improvement, maintenance, repair, operation, and
insurance of the port authority facility in connection with which the
bonds are authorized, the rentals or other charges to be imposed for
the use or services of any port authority facility, the custody,
safeguarding, and application of all moneys, and provisions for the
employment of consulting engineers in connection with the
construction or operation of any port authority facility.
3. A bank or trust company incorporated under the laws of this
state, that may act as the depository of the proceeds of bonds or of
revenues, shall furnish any indemnifying bonds or may pledge any
securities that are required by the port authority. The trust
agreement may set forth the rights and remedies of the bondholders
and of the trustee, and may restrict the individual right of action
by bondholders as is customary in trust agreements or trust
indentures securing similar bonds. The trust agreement may contain
any other provisions that the port authority determines reasonable
and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of the trust agreement may be
treated as a part of the cost of the operation of the port authority
facility. Section History: Recent Form
2005 Acts, ch 150, §110
