§ 16-62-10 - Security for bonds and notes. - Rhode Island Statutes

SECTION 16-62-10

   § 16-62-10  Security for bonds and notes.– (a) The principal of and interest on any bonds or notes issued by the authoritymay be secured by a pledge or assignment of any revenues, receipts, or assetsof the authority and may be secured by a security interest or other instrumentcovering all or any part of one or more eligible loans or education loans madeor acquired by the authority pursuant to the provisions of this chapter.

   (b) The resolution under which the bonds or notes areauthorized to be issued and any security interest or other instrument maycontain any agreements and provisions respecting the servicing of the loanscovered by it, any fixing and collection of payments or repayments or otherrevenues from these, any creation and maintenance of special funds from thoserevenues, and any rights and remedies available in the event of default, all asthe authority shall deem advisable.

   (c) Each pledge, assignment, agreement, security interest, orother instrument made for the benefit or security of any of the bonds or notesof the authority shall continue in effect until the principal of and intereston the bonds or notes for the benefit of which the pledge or security agreementwas made shall have been fully paid, or until provision shall have been madefor that payment in the manner provided in the resolution under which the bondsor notes were authorized.

   (d) Any pledge made by the authority shall be valid andbinding from the time it is made. The money or property pledged and receivedafter this by the authority shall immediately be subject to the lien of thepledge without physical delivery or further act. The lien of the pledge shallbe valid and binding against all parties having a claim in tort, contract, oragainst the authority, whether or not the parties have notice of the claim.Neither the resolution nor any instrument by which a pledge is created needs tobe recorded.

   (e) Any resolution under which bonds or notes of authorityare authorized to be issued, and any trust indenture established by it, maycontain provisions for vesting in a trustee or trustees any properties, rights,powers, and duties in trust as the authority may determine.