12-881. Same; trust agreements to secure bonds; contents; expenses.
12-881
12-881. Same; trust agreements to secure bonds; contents; expenses.
In the discretion of the city or the authority any bonds issued under
the provisions of this act may be secured by a trust agreement by and
between the city or the authority 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 contract rights and
revenues to be received thereunder. 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 city or the authority in relation to the
acquisition of contracts and contract rights, the rates to be charged, 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 city or the authority. 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 city or the authority may deem
reasonable and proper for the security of the bondholders. All expenses
incurred in carrying out the provisions of such trust agreement or
resolution may be treated as a part of the cost of the operation of the
system.
History: L. 1974, ch. 260, § 12; March 18.