State Codes and Statutes
Statutes > Rhode-island > Title-39 > Chapter-39-18 > 39-18-8SECTION 39-18-8
§ 39-18-8 Trust agreement – Othersecurity for bonds. – Bonds issued under the provisions of this chapter may be secured by trustagreement by and between the authority and a corporate trustee, which may beany trust company or bank having the powers of a trust company within orwithout the state. The trust agreement or the resolution providing for theissuance of the bonds may pledge or assign the revenues to be received, butshall not convey or mortgage any transit property or any part thereof. Thetrust agreement or resolution providing for the issuance of the bonds maycontain such provisions for protecting and enforcing the rights and remedies ofthe bondholders as may be reasonable and proper and not in violation of law,including, without limitation, covenants setting forth the duties of theauthority in relation to the custody, safeguarding, and application of allmoneys, and conditions or limitations with respect to the issuance ofadditional bonds. It shall be lawful for any bank or trust company incorporatedunder the laws of the state which may act as depositary of the proceeds ofbonds or of revenues to furnish such indemnifying bonds or to pledge suchsecurities as may be required by the authority. Any trust agreement may setforth the rights and remedies of the bondholders and of the trustee, and mayrestrict the individual right of action by bondholders. In addition to theforegoing, any trust agreement or resolution may contain such other provisionsas the authority may deem reasonable and proper for the security of thebondholders. All expenses incurred in carrying out the provisions of the trustagreement or resolution may be treated as a part of the authority's cost ofoperation and maintenance. Bonds may also be secured by insurance or by lettersof credit or in any other manner deemed appropriate by the authority notinconsistent with the provisions of this chapter, or may be unsecured.
