Delaware § 4531 - Powers in connection with issuance of bonds.

§ 4531. Powers in connection with issuance of bonds.

(a) In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of such bonds or obligations, an authority, in addition to its other powers, may:

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

(2) Mortgage all or any part of its real or personal property, then owned or thereafter acquired;

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

(4) Covenant as to the bonds to be issued and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof, provide for the replacement of lost, destroyed or mutilated bonds, covenant against extending the time for the payment of its bonds or interest thereon, and covenant for the redemption of the bonds and provide the terms and conditions thereof;

(5) Covenant (subject to the limitations contained in this chapter) as to the amount of revenues 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 thereof, create or authorize the creation of special funds for moneys held for operating costs, debt service, reserves or other purposes and covenant as to the use and disposition of the moneys held in such funds;

(6) 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 such consent may be given;

(7) Covenant as to the use, maintenance and replacement of any or all of its real or personal property, the insurance to be carried thereon and the use and disposition of insurance moneys, and warrant its title to such property;

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

(9) Vest in any obligees of the authority the right to enforce the payment of the bonds or any covenants securing or relating to the bonds, vest in any obligee or obligees holding a specified amount in bonds the right, in the event of a default by the authority, take possession of and use, operate and manage any redevelopment project or any part thereof, title to which is in the authority, or any funds connected therewith, and collect the rents and revenues arising therefrom and dispose of such moneys in accordance with the agreement of the authority with such obligees, provide for the powers and duties of such obligees and limit the liabilities thereof, and provide the terms and conditions upon which such obligees may enforce any covenant or rights securing or relating to the bonds; and

(10) Exercise all or any part or combination of the powers herein granted, make such covenants (other than and in addition to the covenants herein expressly authorized) and do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or, at the absolute discretion of the authority, as will tend to make the bonds more marketable notwithstanding that such covenants, acts or things may not be enumerated herein.

(b) An authority may by its resolution, trust indenture, mortgage, lease or other contract confer upon any obligee holding or representing a specified amount in bonds, the right (in addition to all rights that may otherwise be conferred), upon the happening of an event of default as defined in such resolution or instruments, by suit, action or proceeding in any court of competent jurisdiction:

(1) To cause possession of any redevelopment project or any part thereof, title to which is in the authority, to be surrendered to any such obligee;

(2) To obtain the appointment of a receiver of any redevelopment project of such authority or any part thereof, title to which is in the authority and of the rents and profits therefrom. If such receiver be appointed, the receiver may enter and take possession of, carry out, operate and maintain such project or any part thereof and collect and receive all fees, rents, revenues or other charges thereafter arising therefrom and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of such authority as the court shall direct; and

(3) To require such authority and the commissioners, officers, agents and employees thereof to account as if it and they were the trustees of an express trust.

48 Del. Laws, c. 345, §  11;  31 Del. C. 1953, §  4531;  70 Del. Laws, c. 186, §  1;