§ 22-209. Trust agreements to secure bonds

   (a) Authorized. -- The Commission may enter into a trust agreement to secure bonds issued under this subtitle.

(b) Trustee. -- The trustee under the trust agreement may be a bank or trust company that has the powers of a trust company in or outside the State.

(c) Revenues pledged or assigned. -- The trust agreement may pledge or assign all revenues from one or more projects as specified by the Commission.

(d) Protection and enforcement of rights and remedies of bondholders. -- The trust agreement may provide for the protection and enforcement of the rights and remedies of the bondholders, including:

   (1) covenants setting forth the duties of the Commission regarding:

      (i) construction, acquisition, improvement, installation, maintenance, operation, repair, and insurance of a project; and

      (ii) custody, safeguarding, and application of all money;

   (2) the establishment and funding of reserve funds;

   (3) requirements that a project be constructed and paid for under the supervision and approval of consulting engineers employed or designated by the Commission; and

   (4) statements of the rights and remedies of the bondholders and of the trustee, which may restrict the individual right of action of bondholders.

HISTORY: An. Code 1957, art. 29, § 4-210; 2010, ch. 37, § 3.