Nevada § 612.6124 - Security for bonds

§ 612.6124. Security for bonds

1. The bond obligations and bond administrative expenses are secured, for the benefit

of the owners of the bonds and the obligees under any agreement described in subsection

5, by pledge of, security interest in and first lien on all the following: (a) Special bond contributions; (b) Money on deposit in the Unemployment Compensation Bond Fund, including all investment

income thereon; (c) Proceeds of the bonds and receipts from related credit agreements; and (d) Money relating to the bonds held on deposit in any other fund or account under

any instrument or agreement pertaining to the bonds, including, without limitation,

bond reserves and income on such money. 2. To the extent legally available therefor under federal law, that part of the principal

due on bonds which is attributable to payment of benefits or the repayment of the

principal of federal advances under Title XII of the Social Security Act, 42 U.S.C. §§ 1321 et seq., as amended, exclusive of any interest or bond administrative expenses associated

with the bonds, is also payable from money in the Unemployment Compensation Fund,

including the Benefit Account, and money credited to the account of this State in

the Unemployment Trust Fund pursuant to section 903 of the Social Security Act, 42 U.S.C. § 1103 , as amended. 3. The security provided in subsections 1 and 2 does not apply to money in any fund

or account related to arbitrage rebate obligations. 4. The special bond contributions and other money, funds and assets pledged to the

payment of bond obligations and bond administrative expenses by subsection 1 constitute

pledged revenues, as defined in NRS 349.192 , with respect to the bonds. 5. The Department of Employment, Training and Rehabilitation, the Division, the Administrator,

the State Treasurer, the State Board of Finance and any other division or department

of this State may enter into loan agreements, credit agreements, bond purchase agreements,

trust indentures, trust agreements, financing agreements, intergovernmental agreements

and other contracts, instruments and agreements in connection with the bonds in order

to effectuate the purposes of NRS 612.6102 to 612.6134 , inclusive. Such documents may contain such covenants, representations, warranties, terms, conditions

and other provisions as the officers entering into such documents deem appropriate,

including provisions relating to the transfer to the bond trustee, or other depositary

agent, for the bonds of funds pledged or otherwise authorized to be used to pay the

bonds, the security for and payment of the bonds and, if applicable, tax exemption

of interest on the bonds. 6. Special bond contributions and other money, funds and assets pledged to the payment

of bond obligations and bond administrative expenses by subsection 1, as received

by or otherwise credited to this State, are immediately subject to the lien of such

pledge without any physical delivery thereof, any filing or further act. The lien of such pledge and the obligation to perform the contractual provisions

made in the authorizing resolution or other instrument appertaining thereto has priority

over any or all other obligations and liabilities of this State, except as may be

otherwise provided in chapter 349 of NRS or in such resolution or other instrument, and subject to any prior pledges and liens

theretofore created. The lien of such pledge is valid and binding as against all persons having claims

of any kind in tort, contract or otherwise against this State, irrespective of whether

such persons have notice thereof.