2006 New Mexico Statutes - Section 11-3A-16 — Provisions of bonds and trust indentures.

11-3A-16. Provisions of bonds and trust indentures.

In connection with the issuance of bonds pursuant to the Regional Housing Law [Chapter 11, Article 3A NMSA 1978] or the incurring of obligations under leases made pursuant to the Regional Housing Law and in order to secure the payment of bonds or obligations, an authority, in addition to its other powers, shall have power:   

A.     to pledge all or any part of the gross or net rents, fees or revenues of a housing project, and to mortgage and otherwise encumber a housing project financed with the proceeds of such bonds, to which its rights then exist or may thereafter come into existence;   

B.     to covenant against pledging all or any part of the rents, fees and revenues, or against permitting or suffering any lien on such revenues or property; to covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or any part thereof; and to covenant regarding what other or additional debts or obligations may be incurred by it;   

C.     to covenant regarding the bonds to be issued, the issuance of bonds in escrow or otherwise and the use and disposition of the proceeds of the bonds; to provide for the replacement of lost, destroyed or mutilated bonds; to covenant against extending the time for the payment of its bonds or interest accrued on the bonds; and to redeem the bonds, and to covenant for their redemption and to provide the terms and conditions of redemption;   

D.     to covenant, subject to the limitations contained in the Regional Housing Law [Chapter 11, Article 3A NMSA 1978], regarding the rents and fees to be charged in the operation of a housing project, the amount to be raised each year or other period of time by rents, fees and other revenues and regarding the use and disposition to be made of rents, fees and other revenues; to create or to authorize the creation of special funds for money held for construction or operating costs, debt service, reserves or other purposes; and to covenant regarding the use and disposition of the money held in such funds;   

E.     to prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the bondholders shall consent to and the manner in which such consent may be given;   

F.     to covenant as to the use of any or all of its real or personal property acquired pursuant to the Regional Housing Law; and to covenant regarding the maintenance of such real and personal property, the replacement of that property, the insurance to be carried on that property and the use and disposition of insurance money;   

G.     to covenant regarding the rights, liabilities, powers and duties arising upon the breach by the regional authority of any covenant, condition or obligation; and to covenant regarding and prescribe events of default and terms and conditions upon which the declaration and its consequences may be waived;   

H.     to vest in a trustee or the holders of bonds issued pursuant to the Regional Housing Law [Chapter 11, Article 3A NMSA 1978], or any specified proportion of them, the right to enforce the payment of bonds or any covenants securing or relating to the bonds; to vest in a trustee the right, in the event of a default by the authority, to take possession of any housing project or part of a housing project and, so long as the authority continues in default, to retain possession and use, operate and manage the housing project, to collect the rents and revenues arising from the housing project and to dispose of the money in accordance with the agreement of the authority and the trustee; to provide for the powers and duties of a trustee and to limit the liabilities of the trustee; and to provide the terms and conditions upon which the trustee or the holders of bonds, or any proportion of them, may enforce any covenant or rights securing or relating to the bonds; and   

I.     to exercise all or any part or combination of the powers granted in this section; to make covenants other than and in addition to the covenants expressly authorized, of like or different character; and to make covenants that will tend to make the bonds more marketable, notwithstanding that the covenants or acts may not be enumerated in this section.