Title 45
Towns and Cities

Chapter 33
Redevelopment Financing

§ 45-33-8. Terms and covenants permissible in bonds.

In connection with the issuance of bonds, an agency, in addition to its other powers, has power:

(1) To pledge all or any part of its net rents, fees, or revenues to which its right then exists or may thereafter come into existence.

(2) To encumber (by mortgage, deed of trust, or otherwise) all or any part of its real or personal property, then owned or thereafter acquired.

(3) To covenant against pledging all or any part of its rents, fees, and revenues, or against encumbering all or any part of its real or personal property, to which its right or title then exists or may thereafter come into existence, or against permitting or suffering any lien on revenues or property; to covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any redevelopment project or any part of it; and to covenant as to what other or additional debts or obligations may be incurred by it.

(4) To covenant as to the bonds to be issued and as to the issuance of those bonds in escrow or otherwise, and as to the use and disposition of the proceeds of those bonds; to provide for the replacement of lost, destroyed, or mutilated bonds, to covenant against extending the time for the payment of its bonds or interest on them; and to redeem the bonds, and to covenant for their redemption and to provide the terms and conditions of the bonds.

(5) To covenant, as to the consideration of rents and fees to be charged in the sale or lease of a redevelopment project or projects, or any part of it, the amount to be raised each year or other period of time by rents, fees, and other revenues, and as to the use and disposition to be made of the rents, fees, and other revenues; and to create or to authorize the creation of special funds for moneys held for redevelopment or other costs, debt service, reserves, or other purposes, and to covenant as to the use and disposition of the moneys held in those funds.

(6) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given.

(7) To covenant as to the use of any or all of its real or personal property; and to covenant as to the maintenance of its real and personal property, the replacement of it, the insurance to be carried, and the use and disposition of insurance moneys.

(8) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and to covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds or obligations become or may be declared due before maturity, and as to the terms and conditions upon which the declaration and its consequences may be waived.

(9) To vest in a trustee or trustees or the holders of bonds or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds; to vest in a trustee or trustees the right, in the event of a default by the agency, to take possession of any redevelopment project or part of it, and to collect the rents and revenues arising from the bonds, and to dispose of the moneys in accordance with the agreement of the agency with the trustee or trustees; to provide for the powers and duties of a trustee or trustees, and to limit the liabilities; and to provide the terms and conditions upon which the trustee or trustees or the holders of the bonds or any proportion of them may enforce any covenant or rights securing or relating to the bonds.

(10) To exercise all or any part or combination of the powers granted by this section; and to make covenants and to do any and all acts and things that may be necessary or convenient or desirable in order to secure its bonds, or, in the discretion of the agency, except as otherwise provided in chapters 31 — 33 of this title, that will tend to make the bonds more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this section.