(a) The Notes Issuer may issue Hotel Development Notes to finance total Project costs of eligible Projects approved pursuant to this chapter, including, without limitation, costs of issuance, debt service and other reserves, and related ancillary costs and expenses. Hotel Development Notes may be issued to refund other Hotel Development Notes issued pursuant to this chapter. Hotel Development Notes may not be issued in an amount exceeding the total costs of implementing the hotel development financing plan for which they were issued.
(b) The Notes Issuer may execute such financing documents as may be necessary or appropriate for the issuance, security, and administration of Hotel Development Notes, investment of proceeds and moneys in the accounts provided for in, or pursuant to, this chapter, and the application of the proceeds of the Hotel Development Notes and the moneys and investments in such accounts, and for the purposes set forth in section 1304, including financing documents with developers.
(c)
(1) To secure the full and timely payment of Hotel Development Notes issued under this chapter in accordance with their respective terms, all such Hotel Development Notes must be secured by a statutory lien on all Designated Hotel Room Tax and Designated Casino Taxes on Gross Revenue that shall have been pledged as security therefor. The lien arises solely by force of this chapter specifically upon the issuance of any Hotel Development Notes issued after the effective date of this chapter and automatically attaches without further action or authorization by the Government or the PFA. The lien is valid and binding from the time the Hotel Development Notes are received by or for the account of the Government, and the lien immediately attaches to the Hotel Development Notes and becomes effective, binding and enforceable against the Government or the PFA, as applicable, their respective successors, transferees, or creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act.
(2) The Government shall covenant and agree for the benefit of the holders of the Hotel Development Notes outstanding from time to time that for so long as any Hotel Development Notes remain unpaid, the Government shall defend, preserve and protect such statutory lien against all claims and demands of third parties, and not revoke, terminate or amend such statutory lien in any way that materially adversely affects the rights of any holder of Hotel Development Notes.