§ 35-8.1-16 - Loan and trust agreement. - Rhode Island Statutes

SECTION 35-8.1-16

   § 35-8.1-16  Loan and trust agreement.– In the discretion of the authority, any bonds issued under the provisions ofthis chapter may be secured by a loan and trust agreement by and between the(1) authority, the state, and a corporate trustee, which may be any trustcompany or bank having the powers of a trust company within or without thestate; or (2) the authority, the state and the state retirement system. Theloan and trust agreement, or the resolution providing for the issuance of thebonds, may pledge or assign the revenues of the authority and may contain suchprovisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law. Itshall be lawful for any bank or trust company incorporated under the laws ofthe state which may act as depository of the proceeds of bonds or of revenuesof the authority to furnish such indemnifying bonds or to pledge suchsecurities as may be required by the authority. The loan and trust agreementmay set forth the rights and remedies of the bondholders and of the trustee, ifapplicable, and may restrict the individual right of action by bondholders.