South Carolina § 59-109-100 - Trust agreement to secure bonds.

§ 59-109-100. Trust agreement to secure bonds.

(A) In the discretion of the authority any bonds issued under the provisions of this chapter 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 the State. Any bank or trust company which may act as depository of the proceeds of bonds or of revenues or other monies may furnish such indemnifying bonds or pledge such securities as may be required by the authority. All expenses incurred in carrying out the provisions of such trust agreement or proceedings may be treated as a part of the cost of the operation of a project.

(B) The proceedings authorizing or any trust agreement providing for any bonds and any financing agreement related thereto may contain any agreements and provisions, which shall be a part of the contract with the holders of such bonds, as the authority considers necessary or convenient including, without limiting the generality of the foregoing, provisions as to:

(1) pledging all or any part of the revenues of a project, including revenues to be derived pursuant to a financing agreement, to secure the payment of the bonds issued to defray the cost, or any portion of the cost, of such project;

(2) the fixing and collection of the sums payable by the participating institution for higher learning to the authority pursuant to the financing agreement;

(3) the rentals, fees, and other charges to be charged, and the amounts to be raised in each year thereby, and the use and disposition of the revenues;

(4) the setting aside of reserves or sinking funds, and the regulation and disposition thereof;

(5) limitations on the right of the authority or its agent or a participating institution for higher learning to restrict and regulate the use of the project;

(6) limitations on the purpose to which the proceeds of sale of any issue of revenue bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the revenue bonds or any issue of the revenue bonds;

(7) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;

(8) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;

(9) limitations on the amount of monies derived from the project to be expended for operating, administrative, or other expenses of the authority;

(10) defining the acts or omissions to act which shall constitute a default in the duties of the authority to holders of its obligations and providing the rights and remedies of the trustee and such holders in the event of a default and any restrictions thereon; and

(11) the mortgaging of a project or any portion thereof for the purpose of securing the bondholders.

HISTORY: 1962 Code SECTION 22-41.9; 1969 (56) 444; 1993 Act No. 167, SECTION 6.