New Jersey § 52:18a-78

§ 52:18a-78.

In any resolution of the authority authorizing or relating to the issuance of any

bonds or notes, the authority, in order to secure the payment of the bonds or notes

and in addition to its other powers, shall have power by provisions therein which

shall constitute covenants by the authority and contracts with the holders of the

bonds or notes, to: a. Secure the bonds or notes as provided in section 14; 1 b. Covenant against pledging all or any part of its revenues or receipts or its leases,

sales agreements, service contracts or other security instruments, or its mortgages

or other agreements, or the revenues or receipts under any of the foregoing or the

proceeds thereof, or against mortgaging or leasing all or any part of its real or

personal property then owned or thereafter acquired, or against permitting or suffering

any lien on any of the foregoing; c. Covenant with respect to limitations on any right to sell, mortgage, lease or otherwise

dispose of any project or any part thereof or any property of any kind; d. Covenant as to any bonds and notes to be issued and the limitations thereon and

the terms and conditions thereof and as to the custody, application, investment, and

disposition of the proceeds thereof; e. Covenant as to the issuance of additional bonds or notes or as to limitations on

the issuance of additional bonds or notes and on the incurring of other debts by it; f. Covenant as to the payment of the principal of or interest on the bonds or notes,

or any other obligations, as to the sources and methods of the payment, as to the

rank or priority of the bonds, notes or obligations with respect to any lien or security

or as to the acceleration of the maturity of the bonds, notes or obligations; g. Provide for the replacement of lost, stolen, destroyed or mutilated bonds or notes; h. Covenant against extending the time for the payment of bonds or notes or interest

thereon; i. Covenant as to the redemption of bonds or notes and privileges of exchange thereof

for other bonds or notes of the authority; j. Covenant as to the fixing and collection of rents, fees, rates and other charges,

the amount to be raised each year or other period of time by rents, fees, rates and

other charges and as to the use and disposition to be made thereof; k. Covenant to create or authorize the creation of special funds or moneys to be held

in pledge or otherwise for construction, operating expenses, payment or redemption

of bonds or notes; reserves or other purposes and as to the use, investment, and

disposition of the moneys held in these funds; l . Establish the procedure, if any, by which the terms of any contract or covenant

with or for the benefit of the holders of bonds or notes may be amended or abrogated,

the amount of bonds or notes the holders of which must consent thereto, and the manner

in which the consent may be given; m. Covenant as to the construction, improvement, operation or maintenance of any project

and its other real and personal property, the replacement thereof, the insurance to

be carried thereon, and the use and disposition of insurance moneys; n. Provide for the release of property, leases or other agreements, or revenues and

receipts from any pledge or mortgage and to reserve rights and powers in, or the right

to dispose of, property which is subject to a pledge or mortgage; o . Provide for the rights and liabilities, powers and duties arising upon the breach

of any covenant, condition or obligation and prescribe the events of default and the

terms and conditions upon which any or all of the bonds, notes or other obligations

of the authority shall become or may be declared due and payable before maturity and

the terms and conditions upon which the declaration and its consequences may be waived; p. Vest in a trustee or trustees within or without the State such property rights,

powers and duties in trust as the authority may determine, including the right to

foreclose any mortgage, which may include any or all of the rights, powers and duties

of any trustee appointed by the holders of any bonds or notes pursuant to section

24 of this act 2 and to limit or abrogate the right of the holders of any bonds or notes of the authority

to appoint a trustee under this act, and to limit the rights, duties and powers of

the trustee; q. Execute all mortgages, leases, sales agreements, service contracts, bills of sale,

conveyances, deeds of trust and other instruments necessary or convenient in the exercise

of its powers or in the performance of its covenants or duties; r. Pay the costs or expenses incident to the enforcement of the bonds or notes or

of the provisions of the resolution or of any covenant or agreement of the authority

with the holders of its bonds or notes; s. Limit the rights of the holders of any bonds or notes to enforce any pledge or

covenant securing bonds or notes; and t. Make covenants other than or in addition to the covenants authorized by this act

of like or different character, and to make such covenants to do or refrain from doing

such acts and things as may be necessary, or convenient and desirable, in order to

better secure bonds or notes or which, in the absolute discretion of the authority

will tend to make bonds or notes more marketable, notwithstanding that the covenants,

acts or things may not be enumerated herein. 1

N.J.S.A. § 52:18A-78.14. 2

N.J.S.A. § 52:18A-78.24.