40:37A-63 - Covenants and agreements with holders of bonds - New Jersey Statutes

40:37A-63.  Covenants and agreements with holders of bonds
    Any bond resolution of an authority providing for or authorizing the issuance of any bonds may contain provisions, and such authority, in order to secure the payment of such bonds and in addition to its other powers, shall have power by provision in such bond resolution to covenant and agree with the several holders of such bonds, as to:

    (a) The custody, security, use, expenditure or application of the proceeds of the bonds;

    (b) The construction and completion, or replacement, of any public facility  or facilities;

    (c) The use, regulation, operation, maintenance, insurance or disposition of  any public facility or facilities, or restrictions on the exercise of the powers of the authority to dispose, or to limit or regulate the use, of any public facility or facilities;

    (d) Payment of the principal of or interest on the bonds, or any other obligations, and the sources and methods thereof, the rank or priority of any such bonds or obligations as to any lien or security, or the acceleration of the maturity of any such bonds or obligations;

    (e) The use and disposition of any moneys of the authority, including revenues (in this act sometimes called  "facility revenues" ) derived or to be derived from the operation of any public facility or facilities, including any parts thereof theretofore constructed or acquired and any parts, extensions, replacements or improvements thereof thereafter constructed or acquired:

    (f) Pledging, setting aside, depositing or trusteeing all or any part of the  facility revenues or other moneys of the authority, and mortgaging, pledging or  otherwise encumbering all or any part of its real or personal property, then  owned or thereafter acquired, to secure the payment of the principal of or  interest on the bonds or any other obligations or the payment of expenses of  operation or maintenance of any public facility or facilities, and the powers  and duties of any trustee with regard thereto;

    (g) The setting aside out of the facility revenues or other moneys of the authority of reserves and sinking funds, and the source, custody, security, regulation, application and disposition thereof;

    (h) Determination or definition of the facility revenues or of the expenses  of operation and maintenance of a public facility or facilities;

    (i) The rents, rates, fares, fees, or other charges in connection with, or for the use or services of, or otherwise relating to any public facility or facilities, including any parts thereof theretofore constructed or acquired and  any parts, extensions, replacements or improvements thereof thereafter constructed or acquired, and the fixing, establishment, collection and enforcement of the same, the amount or amounts of facility revenues to be produced thereby, and the disposition and application of the amounts charged or  collected;

    (j) The assumption or payment or discharge of any indebtedness, liens or other claims relating to any part of any public facility or facilities or any obligations having or which may have a lien on any part of the facility revenues;

    (k) Limitations on the issuance of additional bonds or any other obligations  or on the incurrence of indebtedness of the authority;

    (l) Limitations on the powers of the authority to construct, acquire or operate any structures, facilities or properties which may compete or tend to compete with any of its public facilities;

    (m) Vesting in a trustee or trustees within or without the State such property, rights, powers and duties in trust as the authority may determine which may include any or all of the rights, powers and duties of the trustee appointed by the holders of bonds pursuant to section 21 of this act, and limiting or abrogating the right of such holders to appoint a trustee pursuant to section 21 of this act or limiting the rights, duties and powers of such trustee;

    (n) Payment of the costs or expenses incident to the enforcement of the bonds or the provisions of the bond resolution or of any covenant or agreement of the authority with the holders of bonds;

    (o) The procedure, if any, by which the terms of any covenant or agreement with, or duty to, the holders of bonds 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 or evidenced;  or

    (p) Any other matter or course of conduct which, by recital in the bond resolution, is declared to further secure the payment of the principal of or interest on bonds and to be part of any covenant or agreement with the holders of bonds.

    All such provisions of said bond resolution and all such covenants and agreements shall constitute valid and legally binding contracts between the authority and the several holders of the bonds, regardless of the time or issuance of such bonds, and shall be enforceable by any such holder or holders by appropriate action or proceeding in any court of competent jurisdiction, including a proceeding in lieu of prerogative writ.

     L.1960, c. 183, p. 741, s. 20, eff. Jan. 18, 1961.  Amended by L.1968, c. 66,  s. 4, eff. June 18, 1968;  L.1977, c. 291, s. 3, eff. Dec. 12, 1977.