12-881.   Same; trust agreements to secure bonds; contents; expenses. In the discretion of the city or the authority any bonds issued underthe provisions of this act may be secured by a trust agreement by andbetween the city or the authority 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 contract rights andrevenues to be received thereunder. Such trust agreement or resolutionproviding for the issuance of such bonds may contain such provisions forprotecting and enforcing the rights and remedies of the bondholders as maybe reasonable and proper and not in violation of law, including covenantssetting forth the duties of the city or the authority in relation to theacquisition of contracts and contract rights, the rates to be charged, andthe custody, safeguarding and application of all moneys.

      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 city or the authority. Any such trust agreementmay set forth the rights and remedies of the bondholders and of thetrustee, and may restrict the individual right of action by bondholders. Inaddition to the foregoing, any such trust agreement or resolution maycontain such other provisions as the city or the authority may deemreasonable and proper for the security of the bondholders. All expensesincurred in carrying out the provisions of such trust agreement orresolution may be treated as a part of the cost of the operation of thesystem.

      History:   L. 1974, ch. 260, § 12; March 18.