Michigan § 120.116 - Bonds; trust agreement.

Bonds issued under this act must be secured by a trust agreement by and between the authority and a corporate trustee. The corporate trustee may be any trust company or bank having the powers of a trust company, within or without this state. The trust agreement may pledge or assign the rentals and other revenues of the authority, but must not convey or mortgage part or all of a project. The trust agreement must contain provisions for protecting and enforcing the rights and remedies of the bondholders that are reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the acquisition or construction of a project and the extension, enlargement, improvement, maintenance, operation, repair, and insurance of a project and the custody, safeguarding, and application of all money. The trust agreement may contain provisions for the employment of consulting engineers in connection with the construction and operation of a project. The trust agreement must set forth the rights and remedies of the bondholders and of the trustee. The trust agreement may restrict the individual right of action by the bondholders and may contain any other provisions the authority considers reasonable and proper for the security of the bondholders.