35-822. Security for bonds

321 words·~1 min read·/az/title-35/35-822

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The principal and interest of any bonds issued by the corporation may be secured by a pledge of the revenues and receipts of the corporation out of which the principal and interest are to be made payable, by a mortgage covering all or any part of the properties of the corporation or corporations from which the revenues or receipts so pledged may be derived or a mortgage covering any properties of a borrower or lessee, including any enlargements and additions to any such properties, or by such other security as may be prescribed in the proceedings of the board of directors authorizing the issuance of the bonds.

The proceedings under which bonds are authorized to be issued and any mortgage may contain any agreements and provisions respecting the maintenance of the properties covered thereby, the fixing and collection of rents for any portions thereof leased by the corporation to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default and such other provisions as are not inconsistent with the provisions of this chapter, all as the board of directors shall deem advisable and not in conflict with the provisions of this article.

Each pledge, lease, loan agreement or mortgage made to secure any of the bonds of the corporation shall continue to be effective until the principal and interest of the bonds so secured have been fully paid or adequate provisions for such payment have been made. A default in any agreement of the corporation made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage executed as security therefor, may be enforced by suit, by the appointment of a receiver, by the foreclosure of any mortgage, or any one or more of the remedies specified in the proceedings authorizing the issuance of such bonds.