(1) The principal of and interest on any bonds or notes issued by the authority may be secured by a pledge of or security interest in the revenues, rentals, and receipts out of which the same may be made payable or from other moneys available therefor and not otherwise pledged or used as security and may be secured by a trust indenture, mortgage, or deed of trust (including assignment of leases or other contract rights of the authority thereunder) covering all or any part of the facilities from which the revenues, rentals, or receipts so pledged or used as security may be derived, including any enlargements of and additions to any such facility thereafter made. The resolution under which the bonds are authorized to be issued and any such trust indenture, mortgage, or deed of trust may contain any agreements and provisions which shall be a part of the contract with the holders of the bonds or notes to be authorized as to:
The pledging or providing of a security interest in all or any part of the revenues of afacility or any revenue-producing contract or contracts made by the authority with any individual, partnership, corporation, or association or any other body, public or private, to secure the payment of the bonds or notes or of any particular issue of bonds, subject to such agreements with noteholders or bondholders as may then exist;
The maintenance of properties covered thereby;
The fixing and collection of mortgage payments, rents, fees, and other charges andthe amounts to be raised in each year thereby and the use and disposition of the revenues;
The setting aside, creating, and maintaining of special and reserve funds and sinkingfunds and the use and disposition of the revenues;
The limitations on the right of the authority or its agent to restrict and regulate theuse of the facilities;
The limitations on the purpose to which the proceeds of sale of any issue of bonds ornotes then or thereafter to be issued may be applied and the pledging or providing of a security interest in such proceeds to secure the payment of the bonds or notes or any issue of the bonds or notes;
The limitations on the issuance of additional bonds, the terms upon which additionalbonds may be issued and secured, and the refunding of outstanding bonds;
The procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated and the total amount of bonds or notes consented to by the holders thereof and the manner in which such consent may be given;
The limitations on the amount of moneys derived from a facility to be expended foroperating, administrative, or other expenses of the authority;
The defining of the acts or omissions to act constituting a default in the duties of theauthority to holders of its obligations and the providing of rights and remedies to such holders in the event of a default;
The mortgaging of a facility and the site thereof for the purpose of securing the bondholders or noteholders;
Such other additional covenants, agreements, and provisions as are judged advisableor necessary by the authority for the security of the holders of such bonds or notes.
Any pledge made by the authority shall be valid and binding at the time the pledge ismade and thereafter until satisfied. The revenues, moneys, or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort or contract or in any other form against the authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. Each pledge, agreement, lease, indenture, mortgage, and deed of trust made for the benefit or security of any of the bonds of the authority shall continue to be effective until the principal of and interest on the bonds for the benefit of which the same were made has been fully paid or provision for such payment has been duly made. In the event of default in such payment or in any agreements of the authority made as a part of the contract under which the bonds were issued, whether contained in the resolutions authorizing the bonds or in any trust indenture, mortgage, or deed of trust executed as security therefor, said payment or agreement may be enforced by suit, action in the nature of mandamus, appointment of a receiver in equity, foreclosure of any mortgage or deed of trust, or any one or more of said remedies.
In addition to the provisions of subsections (1) and (2) of this section, bonds of theauthority may be secured by a pooling of leases, loans, or mortgages whereby the authority may assign its rights as lessor, lender, or mortgagee and pledge rents, loan payments, or mortgage payments under two or more leases, loans, or mortgages, with two or more participating educational institutions or cultural institutions as lessees, borrowers, or mortgagors, respectively, upon such terms as may be provided for in the resolutions of the authority or as may be provided for in a trust indenture or mortgage or deed of trust authorized by the authority.
Source: L. 81: Entire article added, p. 1105, § 1, effective July 1. L. 89: (3) amended, p. 990, § 6, effective April 8. L. 98: (3) amended, p. 606, § 9, effective May 4.