Section 228-A:3 Trust or Security Agreement or Resolution. - New Hampshire Statutes

   I. Any bonds issued under this chapter may be secured by a resolution or by a trust or security agreement between the state and a corporate trustee or by a trust or security agreement directly between the state and the purchasers of the bonds. Any corporate trustee that is a party to such resolution or trust or security agreement may be any trust company or bank having the powers of a trust company within or without the state. Any such resolution or trust or security agreement shall be in such form and executed in such manner as may be determined by the treasurer, with the approval of the governor and council. Such trust or security agreement or resolution may pledge or assign, in whole or in part, the revenues, as defined in RSA 228-A:1, held or to be received by the state and any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the state, and any proceeds thereof. Such trust or security agreement or resolution may contain such provisions for protecting and enforcing the rights, security, and remedies of the bondholders as may, in the discretion of the treasurer, be reasonable and proper and not in violation of law. Without limiting the generality of the foregoing, such agreement or resolution may include:
      (a) Provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities, and
      (b) Covenants setting forth the duties of, and limitations on, the state in relation to:
         (1) The custody, safeguarding, investment and application of moneys;
         (2) The issue of additional or refunding bonds;
         (3) The use of any surplus bond proceeds;
         (4) The establishment of reserves;
         (5) The construction and operation of any highway or project related thereto;
         (6) Any contracts relating thereto; and
         (7) Subsequent amendments of such provisions and contracts.
   II. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of bonds, revenues, or other moneys under a trust or security agreement or resolution. It shall be lawful for any bank or trust company to furnish such indemnification or to pledge such securities and issue such letters or lines of credit or other credit facilities as may be required by the state acting under this chapter. Any such trust or security agreement or resolution may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders.

Source. 2005, 58:1, eff. July 1, 2005.