§ 4648. Terms of agreement with bond or noteholder
In any resolution of the Bank authorizing, or relating to the issuance of any bonds
or notes, the Bank, in order to secure the payment of the bonds or notes and in addition
to its other powers, may covenant and contract with the holders of the bonds or notes:
(1) to pledge to any payment or purpose all or any part of its revenues to which its right
then exists or may thereafter come into existence, and the monies derived therefrom,
and the proceeds of any bonds or notes;
(2) to covenant against pledging all or any part of its revenues, or against permitting
or suffering any lien on those revenues or its property;
(3) to covenant as to the use and disposition of any payments of principal or interest
received by the Bank on municipal bonds, revenue bonds, or other investments held
by the Bank;
(4) to covenant as to establishment of reserves or sinking funds, the making of provision
for them, and the regulation and disposition thereof;
(5) to covenant with respect to or against limitations on any right to sell or otherwise
dispose of any property of any kind;
(6) to covenant as to any bonds and notes to be issued and their limitations and their
terms and conditions and as to the custody, application, and disposition of their
proceeds;
(7) to 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;
(8) to covenant as to the payment of the principal of or interest on the bonds or notes,
as to the sources and methods of payment, as to the rank or priority of any bonds
or notes with respect to any lien or security or as to the acceleration of the maturity
of any bonds or notes;
(9) to provide for the replacement of lost, stolen, destroyed, or mutilated bonds or notes;
(10) to covenant against extending the time for the payment of bonds or notes or interest
thereon;
(11) to covenant as to the redemption of bonds or notes and privileges of exchange thereof
for other bonds or notes of the Bank;
(12) to covenant as to any charges to be established and charged, the amount to be raised
each year or other period of time by charges or other revenues and as to the use and
disposition to be made thereof;
(13) to covenant to create or authorize the creation of special funds or monies to be held
in pledge or otherwise for operating expenses, payment or redemption of bonds or notes,
reserves, or other purposes and as to the use and disposition of the monies held in
those funds;
(14) to 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;
(15) to covenant as to the custody of any of its properties or investments, the safe-keeping
thereof, the insurance to be carried thereon, and the use and disposition of insurance
monies;
(16) to covenant as to the time or manner of enforcement or restraint from enforcement
of any rights of the Bank arising by reason of or with respect to nonpayment of any
principal or interest of any municipal bonds or revenue bonds;
(17) to provide for the rights and liabilities, powers, and duties arising upon the breach
of any covenant, condition, or obligation and to prescribe the events of default and
the terms and conditions upon which any or all of the bonds, notes, or other obligations
of the Bank 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;
(18) to vest in a trustee or trustees within or without the State such property, rights,
powers, and duties in trust as the Bank may determine, which may include any of the
rights, powers, and duties of any trustee appointed by the holders of any bonds or
notes and to limit or abrogate the right of the holders of any bonds of the Bank to
appoint a trustee under this chapter or limiting the rights, powers, and duties of
the trustee;
(19) to pay the costs or expenses incident to the enforcement of the bonds or notes or
of the resolution or of any covenant or agreement of the bank with the holders of
its bonds or notes;
(20) to agree with any corporate trustee that may be any trust company or bank having the
powers of a trust company within or without the State, as to the pledging or assigning
of any revenues or funds to which the Bank has any rights or interest, and may further
provide for such other rights and remedies exercisable by the trustee as may be proper
for the protection of the holders of any bonds or notes of the Bank and not otherwise
in violation of law, and the agreement may provide for the restriction of the rights
of any individual holder of bonds or notes of the Bank;
(21) to appoint and to provide for the duties and obligations of a paying agent or paying
agents, or such other fiduciaries as the resolution may provide within or without
the State;
(22) to limit the rights of the holders of any bonds or notes to enforce any pledge or
covenant securing bonds or notes; and
(23) to make covenants other than and in addition to the covenants expressly authorized
in this section, of like or different character, and to make covenants to do or refrain
from doing such 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 Bank,
will tend to make bonds or notes more marketable, notwithstanding that the covenants
or things may not be enumerated in this section. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, §§ 15, 16, eff. May 15, 1987.)