§ 10-515. Bonds -- Trust agreement

   (a) Corporate trustee. --

   (1) The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee.

   (2) A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State.

   (3) A corporation or trust company incorporated in the State may:

      (i) act as depository of bond proceeds or revenue; and

      (ii) furnish any indemnity bond or pledge security that the Corporation requires.

(b) Contents. -- The trust agreement or the resolution that provides for the issuance of a bond may:

   (1) state the rights and remedies of bondholders and any trustee;

   (2) contain provisions to protect and enforce the rights and remedies of bondholders;

   (3) contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money;

   (4) restrict the individual right of action of bondholders;

   (5) provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and

   (6) provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines.

(c) Expenses. -- Expenses incurred in carrying out a trust agreement may be treated as a part of the cost of operation of the Corporation.

HISTORY: An. Code 1957, art. 41, § 13-510(l); 2008, ch. 306, § 2.