17-2353.   Same; bond provisions; trust indentures; mortgages.In connection with the issuance of bonds pursuant to this act or theincurring of obligations under leases made pursuant to this act and inorder to secure the payment of the bonds or obligations, a municipality, inaddition to its other powers, shall have power to:

      (a)   Pledge all or any part of the gross or net rents, fees or revenuesof a housing project, financed with the proceeds of such bonds, to whichits rights then exist or may thereafter come into existence.

      (b)   Mortgage all or part of its real or personal property, then owned orthereafter acquired or held pursuant to this act.

      (c)   Covenant against pledging all or any part of the rents, fees andrevenues or against mortgaging all or any part of its real or personalproperty, acquired or held pursuant to this act, to which its right ortitle then exists or may thereafter come into existence or againstpermitting or suffering any lien on such revenues or property; covenantwith respect to limitations on the right to sell, lease or otherwisedispose of any housing project or any part thereof; and covenant as to whatother, or additional debts or obligations may be incurred by it.

      (d)   Covenant as to the bonds to be issued and as to the issuance of suchbonds in escrow or otherwise, and as to the use and disposition of theproceeds thereof; provide for the replacement of lost, destroyed ormutilated bonds; covenant against extending the time for the payment of itsbonds or interest thereon; and covenant for the redemption of the bonds andto provide the terms and conditions thereof.

      (e)   Covenant (subject to the limitations contained in this act) as tothe rents and fees to be charged in the operation of a housing project orprojects, the amount to be raised each year or other period of time byrents, fees and other revenues, and the use and disposition to be madethereof; create or authorize the creation of special funds for moneys heldfor construction or operating costs, debt service, reserves, or otherpurposes, and covenant as to the use and disposition of the moneys held insuch funds.

      (f)   Prescribe the procedure, if any, by which the terms of any contractwith bond holders may be amended or abrogated, the proportion ofoutstanding bonds the holders of which must consent to such action, and themanner in which such consent may be given.

      (g)   Covenant as to the use, maintenance and replacement of any or all ofits real or personal property acquired pursuant to this act, the insuranceto be carried thereon and the use and disposition of insurance moneys.

      (h)   Covenant as to the rights, liabilities, powers and duties arisingupon the breach by it of any covenant, condition, or obligation; andcovenant as to events of default and terms and conditions upon which any orall of its bonds or obligations shall become or may be declared due beforematurity, and as to the terms and conditions upon which such declarationand its consequences may be waived.

      (i)   Vest in any obligees of any specified proportion of them the rightto enforce the payment of the bonds or any covenants securing or relatingto the bonds; vest in an obligee or obligees the right, in the event of adefault by the municipality, to take possession of and use, operate andmanage any housing project or any part thereof or any funds connectedtherewith, and to collect the rents and revenues arising therefrom and todispose of such moneys in accordance with the agreement between themunicipality and such obligees; provide for the powers and duties of suchobligees and limit the liabilities thereof; and provide the terms andconditions upon which such obligees may enforce any covenant or rightssecuring or relating to the bonds.

      (j)   Exercise all or any part or combination of the powers hereingranted; make such covenants (other than and in addition to the covenantsherein expressly authorized) and do any and all such acts and things as maybe necessary or convenient or desirable in order to secure its bonds, or,in the absolute discretion of said municipality, as will tend to make thebonds more marketable notwithstanding that such covenants, acts or thingsmay not be enumerated herein.

      This act, without reference to other statutes of the state, shallconstitute full authority for the authorization and issuance of bondshereunder. No other act or law with regard to the authorization or issuanceof obligations that requires a bond election or in any way impedes orrestricts the carrying out of the acts herein authorized to be done shallbe construed as applying to any proceedings taken hereunder or acts donepursuant hereto.

      History:   L. 1957, ch. 132, § 17; L. 1973, ch. 96,§ 13; July 1.