State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_131A > GS_131A-12

§131A‑12.  Trust agreement or resolution.

In the discretion of theCommission any bonds or notes issued under the provisions of this Chapter maybe secured by a trust agreement by and between the Commission and a corporatetrustee, which may be any trust company or bank having the powers of a trustcompany within or without the State. Such trust agreement or the resolutionauthorizing the issuance of such bonds or notes may pledge or assign all or anypart of the revenues of the Commission received pursuant to this Chapter,including, without limitation, fees, loan repayments, purchase price payments,rents, charges, insurance proceeds, condemnation awards and any other revenuesand funds received in connection with any health care facilities and may mortgageany health care facilities. Such trust agreement or resolution may contain suchprovisions for protecting and enforcing the rights and remedies of the holdersof any such bonds or notes as may be reasonable and proper and not in violationof law, including covenants setting forth the duties of the Commission inrelation to the purposes to which bond or note proceeds may be applied, thedisposition or pledging of the revenues of the Commission, including anypayments in respect of any federally guaranteed security or any federallyinsured mortgage note, the duties of the Commission with respect to theacquisition, construction, maintenance, repair and operation of any health carefacilities, the fees, loan repayments, purchase price payments, rents and chargesto be fixed and collected in connection therewith, the terms and conditions forthe issuance of additional bonds or notes, and the custody, safeguarding andapplication of all moneys. All bonds issued under this Chapter shall be equallyand ratably secured by a pledge, charge, and lien upon revenues provided for insuch trust agreement or resolution, without priority by reason of number, or ofdates of bonds, execution, or delivery, in accordance with the provisions ofthis Chapter and of such trust agreement or resolution; except that theCommission may provide in such trust agreement or resolution that bonds issuedpursuant thereto shall to the extent and in the manner prescribed in such trustagreement or resolution be subordinated and junior in standing, with respect tothe payment of principal and interest and the security thereof, to any otherbonds. It shall be lawful for any bank or trust company incorporated under thelaws of the State which may act as depositary of the proceeds of bonds or notes,revenues or other money hereunder to furnish such indemnifying bonds or topledge such securities as may be required by the Commission. Any such trustagreement or resolution may set off the rights and remedies, includingforeclosure of any mortgage, of the holders of any bonds or notes and of thetrustee, and may restrict the individual right of action by any such holders.In addition to the foregoing, any such trust agreement or resolution maycontain such other provisions as the Commission may deem reasonable and properfor the security of the holders of any bonds or notes. Expenses incurred incarrying out the provisions of such trust agreement or resolution may betreated as a part of the cost of any health care facilities or paid from therevenues pledged or assigned to the payment of the principal of and theinterest on bonds or notes or from any other funds available to the Commission.(1975, c. 766, s. 1; 1979, c. 54, s. 11.)