12-8,103.   Revenue bonds and notes; authorized terms of securityagreement.The resolution, trust indenture or other security agreement under whichany bonds or notes are issued shall constitute a contract with theholders of the bonds or notes, and may contain provisions, among other,prescribing:

      (a)   The terms and provisions of the bonds or notes;

      (b)   the mortgage or pledge of and the grant of a security interestin any real or personal property and all or any part of the revenue fromany project or any revenue producing contract made by the municipalenergy agency with any person to secure the payment of bonds or notes,subject to any agreements with the holders of bonds or notes which mightthen exist;

      (c)   the custody, collection, securing, investment and payment of anyrevenues, assets, money, funds or property with respect to which themunicipal energy agency may have any rights or interest;

      (d)   the creation of reserves or sinking funds and the regulation anddisposition thereof;

      (e)   the purposes to which the proceeds from the sale of any bonds ornotes then or thereafter to be issued may be applied, and the pledge ofthe proceeds to secure the payment of the bonds or notes;

      (f)   limitations on the issuance of any additional bonds or notes,the terms upon which additional bonds or notes may be issued andsecured, and the refunding of outstanding bonds or notes;

      (g)   the rank or priority of any bonds or notes with respect to anylien or security;

      (h)   the creation of special funds or moneys to be held in trust orotherwise for payment or redemption of bonds or notes, reserves or otherpurposes, and the use and disposition of moneys held in these funds;

      (i)   the procedure by which the terms of any contract with or for thebenefit of the holders of bonds or notes may be amended or abrogated,the amount of bonds or notes the holders of which must consent thereto,and the manner in which consent may be given;

      (j)   the definition of the acts or omissions to act which shallconstitute a default in the duties of the municipal energy agency toholders of its bonds or notes, and the rights and remedies of theholders in the event of default including, if the municipal energyagency so determines, the right to accelerate the due date of the bondsor notes or the right to appoint a receiver or receivers of the propertyor revenues subject to the lien of the resolution, trust indenture orother security agreement;

      (k)   any other or additional agreements with or for the benefit ofthe holders of bonds or notes or any covenants or restrictions necessaryor desirable to safeguard the interests of the holders;

      (l)   the custody of any of its properties or investments, thesafekeeping thereof, the insurance to be carried thereon and the use anddisposition of insurance proceeds;

      (m)   the vesting in a trustee or trustees, within or outside thestate, of such properties, rights, powers and duties in trust as themunicipal energy agency may determine; or the limiting or abrogating ofthe rights of the holders of any bonds or notes to appoint a trustee, orthe limiting of the rights, powers and duties of such trustee; or

      (n)   the appointment of and the establishment of the duties andobligations of any paying agent or other fiduciary within or outside thestate.

      History:   L. 1977, ch. 48, § 19; July 1.