(a)(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) The trust agreement or the resolution that provides for the issuance of a bond
(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 incurred in carrying out a trust agreement may be treated as a part of
the cost of operation of the Corporation.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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