46A-1-38. Covenants as to management of project and accounting for funds.

298 words·~1 min read·/sd/title-46/chapter-46-1/46a-1-38

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

The district may covenant with or for the benefit of the holder of any bonds issued under this chapter as to all matters deemed advisable by the district including:

(1)The purposes, terms, and conditions for the issuance of additional parity or junior lien bonds that may thereafter be issued, and for the payment of the principal, redemption premiums, and interest on the bonds;

(2)The kind and amount of all insurance to be carried, the cost of which shall be charged as an operation and maintenance expense of any project;

(3)The operation, maintenance, and management of any project to assure the maximum use and occupancy of the project; the accounting for, and the auditing of, all income revenue from, and all expenses of, any project; the employment of engineers and consultants; and the keeping of records, reports, and audits of any project;

(4)The obligation of the district to maintain any project in good condition and to operate the project at all times in an economical and efficient manner;

(5)The terms and conditions for creating and maintaining debt service funds, reserve funds, and such other special funds as may be created in the resolution authorizing the bonds, separate and apart from all other funds and accounts of the district and the institution;

(6)The procedure by which the terms of any contract with the holders of the bonds may be amended, the amount of bonds the holders of which must consent to the amendment, and the manner in which consent may be given;

(7)Providing the procedure for refunding the bonds;

(8)Such other covenants as may be deemed necessary or desirable to assure a successful operation of any project and the prompt payment of the principal of and interest upon the bonds so authorized.