§ 46-15.1-11 Pledge of revenues and otherfunds. – (a) In the discretion of the board, any bonds or notes issued by it may besecured by a trust agreement between the board and a corporate trustee, whichmay be any trust company or bank whose principal office is within or withoutthe state. The trust agreement or the resolution providing for the issue of thebonds or notes may pledge or assign, in whole or in part, the revenues andother moneys held or to be received by the board under this chapter or chapter15.3 of this title, and may convey, mortgage, or grant or assign a securityinterest in any water supply facilities pledge agreement or lease thereof inconnection with which those bonds shall have been authorized.
(2) The trust agreement or resolution may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders or noteholders as may be reasonable and proper and not in violationof law, including provisions defining defaults and providing for remedies inthe event thereof (which may include the acceleration of maturities), andcovenants setting forth the duties of, and limitations on, the board in actingunder this chapter in relation to the purchase or leasing of property,construction, improvement, enlargement, alteration, equipping, furnishing,maintenance, operation, repair, insurance, and disposition of property, thecustody, safeguarding, investment, and application of monies, the issue ofadditional bonds or notes, the fixing, revision, and collection of rates andrents, the use of any surplus bond or note proceeds, the establishment ofreserves, and the making and amending of leases, pledge agreements andcontracts.
(3) The board is authorized to fix, revise, and collect ratesand rents for water furnished by it or facilities leased by it to others. Therates and rents shall not be subject to supervision or regulation by any othercommission, board, bureau, or agency of the state or of any municipality orother political subdivision of the state, but the rates and rents shall besubject to the terms of any applicable contracts and leases.
(b) It shall be lawful for any bank or trust company to actas a depository or trustee of the proceeds of bonds or notes or of revenues orother moneys under any such trust agreement or resolution, and to furnish suchindemnifying bonds or to pledge such securities as may be required by theboard. The trust agreement or resolution may set forth the rights and remediesof the bondholders or noteholders and of the trustee, and may restrict theindividual right of action by bondholders or noteholders. In addition to theforegoing, the trust agreement or resolution may contain such other provisionsas the board may deem reasonable and proper for the security of the bondholdersor noteholders.
(2) All expenses incurred in carrying out the provisions ofthe trust agreement or resolution may be treated as part of the board's cost ofoperation and maintenance under this chapter.
(3) The pledge or mortgage or grant of a security interest bythe trust agreement or resolution shall be valid and binding from the time whenthe pledge or mortgage or grant of a security interest is made; the revenues orother moneys so pledged and then held or thereafter received by the board shallimmediately be subject to the lien of the pledge without any physical deliverythereof or further act; and the lien of any such pledge or mortgage or grant ofa security interest shall be valid and binding as against all parties havingclaims of any kind in tort, contract, or otherwise against the board,irrespective of whether the parties have notice thereof.
(4) Neither the resolution nor any trust agreement by which apledge or mortgage or grant of a security interest is created need be filed orrecorded except in the records of the board, and no filing need be made underthe Uniform Commercial Code.
§ 46-15.1-11 Pledge of revenues and otherfunds. – (a) In the discretion of the board, any bonds or notes issued by it may besecured by a trust agreement between the board and a corporate trustee, whichmay be any trust company or bank whose principal office is within or withoutthe state. The trust agreement or the resolution providing for the issue of thebonds or notes may pledge or assign, in whole or in part, the revenues andother moneys held or to be received by the board under this chapter or chapter15.3 of this title, and may convey, mortgage, or grant or assign a securityinterest in any water supply facilities pledge agreement or lease thereof inconnection with which those bonds shall have been authorized.
(2) The trust agreement or resolution may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders or noteholders as may be reasonable and proper and not in violationof law, including provisions defining defaults and providing for remedies inthe event thereof (which may include the acceleration of maturities), andcovenants setting forth the duties of, and limitations on, the board in actingunder this chapter in relation to the purchase or leasing of property,construction, improvement, enlargement, alteration, equipping, furnishing,maintenance, operation, repair, insurance, and disposition of property, thecustody, safeguarding, investment, and application of monies, the issue ofadditional bonds or notes, the fixing, revision, and collection of rates andrents, the use of any surplus bond or note proceeds, the establishment ofreserves, and the making and amending of leases, pledge agreements andcontracts.
(3) The board is authorized to fix, revise, and collect ratesand rents for water furnished by it or facilities leased by it to others. Therates and rents shall not be subject to supervision or regulation by any othercommission, board, bureau, or agency of the state or of any municipality orother political subdivision of the state, but the rates and rents shall besubject to the terms of any applicable contracts and leases.
(b) It shall be lawful for any bank or trust company to actas a depository or trustee of the proceeds of bonds or notes or of revenues orother moneys under any such trust agreement or resolution, and to furnish suchindemnifying bonds or to pledge such securities as may be required by theboard. The trust agreement or resolution may set forth the rights and remediesof the bondholders or noteholders and of the trustee, and may restrict theindividual right of action by bondholders or noteholders. In addition to theforegoing, the trust agreement or resolution may contain such other provisionsas the board may deem reasonable and proper for the security of the bondholdersor noteholders.
(2) All expenses incurred in carrying out the provisions ofthe trust agreement or resolution may be treated as part of the board's cost ofoperation and maintenance under this chapter.
(3) The pledge or mortgage or grant of a security interest bythe trust agreement or resolution shall be valid and binding from the time whenthe pledge or mortgage or grant of a security interest is made; the revenues orother moneys so pledged and then held or thereafter received by the board shallimmediately be subject to the lien of the pledge without any physical deliverythereof or further act; and the lien of any such pledge or mortgage or grant ofa security interest shall be valid and binding as against all parties havingclaims of any kind in tort, contract, or otherwise against the board,irrespective of whether the parties have notice thereof.
(4) Neither the resolution nor any trust agreement by which apledge or mortgage or grant of a security interest is created need be filed orrecorded except in the records of the board, and no filing need be made underthe Uniform Commercial Code.
§ 46-15.1-11 Pledge of revenues and otherfunds. – (a) In the discretion of the board, any bonds or notes issued by it may besecured by a trust agreement between the board and a corporate trustee, whichmay be any trust company or bank whose principal office is within or withoutthe state. The trust agreement or the resolution providing for the issue of thebonds or notes may pledge or assign, in whole or in part, the revenues andother moneys held or to be received by the board under this chapter or chapter15.3 of this title, and may convey, mortgage, or grant or assign a securityinterest in any water supply facilities pledge agreement or lease thereof inconnection with which those bonds shall have been authorized.
(2) The trust agreement or resolution may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders or noteholders as may be reasonable and proper and not in violationof law, including provisions defining defaults and providing for remedies inthe event thereof (which may include the acceleration of maturities), andcovenants setting forth the duties of, and limitations on, the board in actingunder this chapter in relation to the purchase or leasing of property,construction, improvement, enlargement, alteration, equipping, furnishing,maintenance, operation, repair, insurance, and disposition of property, thecustody, safeguarding, investment, and application of monies, the issue ofadditional bonds or notes, the fixing, revision, and collection of rates andrents, the use of any surplus bond or note proceeds, the establishment ofreserves, and the making and amending of leases, pledge agreements andcontracts.
(3) The board is authorized to fix, revise, and collect ratesand rents for water furnished by it or facilities leased by it to others. Therates and rents shall not be subject to supervision or regulation by any othercommission, board, bureau, or agency of the state or of any municipality orother political subdivision of the state, but the rates and rents shall besubject to the terms of any applicable contracts and leases.
(b) It shall be lawful for any bank or trust company to actas a depository or trustee of the proceeds of bonds or notes or of revenues orother moneys under any such trust agreement or resolution, and to furnish suchindemnifying bonds or to pledge such securities as may be required by theboard. The trust agreement or resolution may set forth the rights and remediesof the bondholders or noteholders and of the trustee, and may restrict theindividual right of action by bondholders or noteholders. In addition to theforegoing, the trust agreement or resolution may contain such other provisionsas the board may deem reasonable and proper for the security of the bondholdersor noteholders.
(2) All expenses incurred in carrying out the provisions ofthe trust agreement or resolution may be treated as part of the board's cost ofoperation and maintenance under this chapter.
(3) The pledge or mortgage or grant of a security interest bythe trust agreement or resolution shall be valid and binding from the time whenthe pledge or mortgage or grant of a security interest is made; the revenues orother moneys so pledged and then held or thereafter received by the board shallimmediately be subject to the lien of the pledge without any physical deliverythereof or further act; and the lien of any such pledge or mortgage or grant ofa security interest shall be valid and binding as against all parties havingclaims of any kind in tort, contract, or otherwise against the board,irrespective of whether the parties have notice thereof.
(4) Neither the resolution nor any trust agreement by which apledge or mortgage or grant of a security interest is created need be filed orrecorded except in the records of the board, and no filing need be made underthe Uniform Commercial Code.
