Public Finance

CHAPTER 35-8.1
Refunding Bond Authority

SECTION 35-8.1-16

§ 35-8.1-16. Loan and trust agreement.

In the discretion of the authority, any bonds issued under the provisions of this chapter may be secured by a loan and trust agreement by and between the (1) authority, the state, and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state; or (2) the authority, the state and the state retirement system. The loan and trust agreement, or the resolution providing for the issuance of the bonds, may pledge or assign the revenues of the authority and may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of bonds or of revenues of the authority to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. The loan and trust agreement may set forth the rights and remedies of the bondholders and of the trustee, if applicable, and may restrict the individual right of action by bondholders.

History of Section.
(P.L. 1987, ch. 12, § 1; P.L. 1994, ch. 70, art. 16, § 1.)