New Jersey § 13:17-25

§ 13:17-25.

(a) In the discretion of the commission, any bonds issued under the provisions of

this act may be secured by a trust agreement by and between the commission and a corporate

trustee or trustees which may be any trust company or bank having the powers of a

trust company within or without the State. Such trust agreement, or the resolution providing for the issuance of such bonds,

may pledge or assign the revenues or other moneys to be received or the proceeds of

any contract or contracts pledged. Such trust agreement or resolution providing for the issuance of such bonds may

contain such provisions for protecting and enforcing the rights and remedies of the

bondholders as may be reasonable and proper and not in violation of law, including

covenants setting forth the duties of the commission in relation to the acquisition

of property, and the construction, improvement, maintenance, repair, operation and

insurance of the project or projects, the amount of assessments or other charges to

be levied upon holders of lands affected by the project or projects, the payment,

security or redemption of bonds, and the custody, safeguarding and application of

all moneys. Any bank or trust company incorporated under the laws of this State which may act

as depositary of the proceeds of bonds or of revenues or other moneys may furnish

such indemnifying bonds or pledge such securities as may be required by the commission. Any such trust agreement or resolution may set forth the rights and remedies of

the bondholders and of the trustee, or trustees, and may restrict the individual right

of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain

such other provisions as the commission may deem reasonable and proper for the security

of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or

resolution may be treated as a part of the cost of construction or of a reclamation

project or projects. (b) Any pledge or assignment made pursuant to this section shall be valid and binding

from the time when the pledge or assignment is made; the revenues or moneys so pledged

or assigned and thereafter received by the commission shall immediately be subject

to the lien of such pledge without any physical delivery thereof or further act, and

the lien of any such pledge shall be valid and binding as against all parties having

claims of any kind in tort, contract or otherwise against the commission, irrespective

of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge or assignment is

created need be filed or recorded except in the records of the commission.