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261a-44
261A.44 OBLIGATIONS SECURED BY TRUST AGREEMENT.
Obligations issued under this division may be secured by a trust
agreement by and between the authority and an incorporated trustee,
which may be a trust company or bank having the powers of a trust
company within or without the state. The trust agreement or the
resolution providing for the issuance of the obligations may pledge
or assign the revenue to be received or proceeds of any contract
pledged and may convey or mortgage the project or any portion of the
project. A pledge or assignment made by the authority pursuant to
this section is valid and binding from the time that the pledge or
assignment is made, and the revenue pledged and thereafter received
by the authority is immediately subject to the lien of the pledge or
assignment without physical delivery or any further act. The lien of
the pledge or assignment is valid and binding against all parties
having claims of any kind in tort, contract, or otherwise against the
authority irrespective of whether the parties have notice of the
lien. The resolution or trust agreement by which a pledge is created
or an assignment made shall be filed or recorded in the records of
the authority, with the secretary of state, and in each county in
which the project is located. The trust agreement or resolution
providing for the issuance of the obligations may contain provisions
for protecting and enforcing the rights and remedies of the
obligation holders as are reasonable and proper, not in violation of
law, or provided for in this division. A bank or trust company
incorporated under the laws of this state which acts as depository of
proceeds of the obligations, revenue, or other money shall furnish
the indemnifying obligations or pledge the securities as required by
the authority. The trust agreement may set forth the rights and
remedies of the obligation holders and of the trustee, and may
restrict the individual right of action by obligation holders. The
trust agreement or resolution may contain other provisions the
authority deems reasonable and proper for the security of the
obligation holders. Expense incurred in carrying out the trust
agreement or resolution may be treated as a part of the cost of the
operation of a project. Section History: Recent Form
85 Acts, ch 210, §14
Referred to in § 261A.42
