CHAPTER 162-G ACQUISITION, DEVELOPMENT AND DISPOSAL OF INDUSTRIAL LAND AND FACILITIES
Section 162-G:6
162-G:6 Trust Indentures. –
I. A trust indenture may contain a mortgage, pledge, or assignment of all or part of any interest or right which the governmental unit may have as the owner or lessor of a business and industrial facility. Any pledge or assignment of a right to receive money which is contained in a trust indenture shall be fully effective from the time when the trust indenture is executed with or without any subsequent physical delivery or segregation of such money and without any filing or recording under the uniform commercial code or otherwise.
II. A trust indenture may also contain covenants of the governmental unit as to:
(a) The creation and maintenance of reserves;
(b) The issuance of other bonds with respect to the business and industrial facility;
(c) The maintenance, repair, and replacement of the business and industrial facility;
(d) The insurance of the business and industrial facility against risk of loss;
(e) The custody, investment, and application of moneys;
(f) The use of surplus bond proceeds;
(g) Action by the governmental unit in the event of a default by the tenant under the lease;
(h) The subjecting of additional property to the lien of the indenture; and
(i) Any other matter which affects the security for the bonds in any way .
III. A trust indenture may limit the rights of bondholders to enforce obligations of the governmental unit under the trust indenture or obligations of the governmental unit or the tenant under the lease.
Source. 1972, 57:1. 2000, 161:1, eff. July 22, 2000.