Oklahoma § 74-1226.6 - Trust agreements for securing revenue bonds

§ 74-1226.6. Trust agreements for securing revenue bonds

In the discretion of the Authority any bonds issued under the

provisions of this act may be secured by a trust agreement by and

between the Authority and a corporate trustee, which may be any

trust company or bank having the powers of a trust company within or

without the state. Such trust agreement may pledge or assign lease

payments, user fees and other revenues to be received from the

project constructed by the use of the proceeds of the bonds. 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 Authority in relation to the acquisition of

property and the construction, improvement, maintenance, repair,

operation and insurance of the project in connection with which such

bonds shall have been authorized, and the custody, safeguarding and

application of all monies in connection with the construction or

operation of such project or projects. It shall be lawful for any

bank or trust company incorporated under the laws of the state which

may act as depository of the proceeds of bonds or of revenues to

furnish such indemnifying bonds or to pledge such securities as may

be required by the Authority. Any such trust agreement may set

forth the rights and remedies of the bondholders and of the trustee,

and may restrict the individual right of action by bondholders as is

customary in trust agreements or trust indentures securing bonds and

debentures of corporations. In addition to the foregoing any such

trust agreement may contain such other provisions as the Authority

may deem reasonable and proper for the security of the bondholders.

All expenses incurred in carrying out the provisions of such trust

agreement may be treated as a part of the cost of the operation of

the project or projects.

Added by Laws 1994, c. 388, § 8, eff. Sept. 1, 1994.