§ 177 - Security documents - Vermont Statutes

§ 177. Security documents

(a) An assignment, pledge or other encumbrance of all or part of the authority's right to receive payments with respect to eligible charges contained in a security document shall be fully effective from the time when the security document is executed with or without any subsequent physical delivery or segregation of the money, and without any filing or recording under the Uniform Commercial Code or otherwise, and the Uniform Commercial Code shall not apply to such assignment, pledge or other encumbrances.

(b) A security document may contain covenants of the authority as to:

(1) the creation and maintenance of reserves;

(2) the issuance of other mitigation bonds with respect to eligible charges;

(3) the custody, investment and application of monies;

(4) the use of surplus mitigation bond proceeds to redeem mitigation bonds or to reduce charges to customers under any qualified cost mitigation charge order;

(5) action by the authority in the event of a default in connection with the assessment, collection, processing, administration or remittance of eligible charges;

(6) any servicing agreement, administration agreement or other agreement for services;

(7) the subjecting of additional property or charges to the lien of the security document;

(8) any other matter which affects the security for the mitigation bonds in any way;

(9) pledging any other security and monies, whether such security or monies are acquired by or on behalf of the authority to secure the payment of the mitigation bonds.

(c) A security document may limit the rights of holders of mitigation bonds of the authority to enforce obligations of the authority thereunder or under the financing document. (Added 2001, No. 145 (Adj. Sess.), § 4.)