12-3713.   Bonds may be secured by trust agreement; protection of rightsand remedies of bondholders.In the discretion of the secretary of health and environment any bondsissued under the provisions of this act may be secured by a trust agreementby and between the secretary and a corporate trustee, which may be anytrust company or bank having the powers of a trust company within orwithout the state. Such trust agreement or the resolution providing for theissuance of such bonds may pledge or assign the sewer service chargepayments from cities, counties, townships, or other political subdivisionsof the state, and other revenues to be received. Such trust agreement orresolution providing for the issuance of such bonds may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the secretary in relationto grants under this act in connection with which such bonds shall havebeen authorized, and the custody, safeguarding and application of allmoneys.

      It shall be lawful for any bank or trust company incorporated under thelaws of the state which may act as depository of the proceeds of bonds orof revenues to furnish such indemnifying bonds or to pledge such securitiesas may be required by the secretary of health and environment. Any suchtrust agreement may set forth the rights and remedies of the bondholdersand of the trustee, and may restrict the individual right of action bybondholders. In addition to the foregoing, any such trust agreement orresolution may contain such other provisions as the secretary may deemreasonable and proper for the security of the bondholders.

      History:   L. 1973, ch. 69, § 4; L. 1975, ch. 462, § 5; July 1.