12-3713. Bonds may be secured by trust agreement; protection of rights and remedies of bondholders.
12-3713
12-3713. Bonds may be secured by trust agreement; protection of rights
and remedies of bondholders.
In the discretion of the secretary of health and environment any bonds
issued under the provisions of this act may be secured by a trust agreement
by and between the secretary and a corporate trustee, which may be any
trust company or bank having the powers of a trust company within or
without the state. Such trust agreement or the resolution providing for the
issuance of such bonds may pledge or assign the sewer service charge
payments from cities, counties, townships, or other political subdivisions
of the state, and other revenues to be received. Such trust agreement or
resolution providing for the issuance of such bonds may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the secretary in relation
to grants under this act in connection with which such bonds shall have
been authorized, and the custody, safeguarding and application of all
moneys.
It shall be lawful for any bank or trust company incorporated under the
laws of the state which may act as depository of the proceeds of bonds or
of revenues to furnish such indemnifying bonds or to pledge such securities
as may be required by the secretary of health and environment. Any such
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. In addition to the foregoing, any such trust agreement or
resolution may contain such other provisions as the secretary may deem
reasonable and proper for the security of the bondholders.
History: L. 1973, ch. 69, § 4; L. 1975, ch. 462, § 5; July 1.