12-3422.   Same; pledges of revenues and income; powers of board ofdirectors.The board of directors of a port authority issuing bonds pursuant to theprovisions of this act shall pledge for the payment of principal of orinterest on such bonds, all or any part of the revenues to be derived fromthe management and operation of the buildings and facilities for theconstruction, acquisition or improvement of which the bonds are issued;together with any other available income and revenues from revenueproducing facilities of such port authority. In order to secure promptpayment of the principal and interest, and the proper application orrevenues pledged thereto, the board of directors of such port authority isauthorized by appropriate resolution:

      (a)   To covenant as to the use and disposition of the proceeds of thesale of such bonds;

      (b)   to covenant as to the operation of the facilities and buildings andthe collection and disposition of the revenues derived from such operation;

      (c)   to covenant as to the rights, liabilities, powers and duties arisingfrom the breach of any covenant or agreement into which it may enter inauthorizing and issuing the bonds;

      (d)   to covenant and agree to carry such insurance on the buildings andfacilities, and the use and occupancy thereof as may be considereddesirable and, in its discretion, to provide that the cost of suchinsurance shall be considered a part of the expense of operating thebuildings and facilities;

      (e)   to vest in a trustee or trustees the right to receive all or anypart of the income and revenues pledged and assigned to or for the benefitof the holder or holders of bonds issued hereunder and to hold, apply anddispose of the same, and the right to enforce any covenant made to securethe bonds; and to execute and deliver a trust agreement or agreements whichmay set forth the powers and duties and the remedies available to suchtrustee or trustees and may limit the liability thereof and prescribe theterms and conditions upon which such trustee or trustees or the holder orholders of the bonds in any specified amount or percentage may exercisesuch rights and enforce any or all such covenants and resort to suchremedies as may be appropriate;

      (f)   to fix rents, charges and fees to be imposed in connection with andfor the use of the buildings, services and facilities of such portauthority, which rents, charges and fees shall be considered to be incomeand revenues derived from the operation of the buildings and facilities,and are hereby expressly required to be fully sufficient to assure theprompt payment of principal and interest on the bonds as each becomes due,and to make and enforce such rules and regulations with reference to theuse of the buildings and facilities, as it may deem desirable for theaccomplishment of the purposes of this act;

      (g)   to covenant to maintain a maximum percentage of use and occupancy ofthe buildings and facilities for revenue producing purposes;

      (h)   to covenant against the issuance of any other obligations payablefrom the revenues to be derived from the buildings and facilities; and tocovenant as to priority of resort to such revenues between obligations ofsuch port authority;

      (i)   all such agreements and covenants entered into by the board ofdirectors of such port authority shall be binding upon the board and theauthority, its agents and employees, and upon its successors in interest;and all such agreements and covenants shall be enforceable by appropriateaction or suit at law or in equity, which may be brought by any holder orholders of bonds issued hereunder or in their behalf.

      History:   L. 1969, ch. 89, § 22; July 1.