2006 Georgia Code - 2-10-27

2-10-27. (a) In the discretion of the authority, any issue of such bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. (b) Resolutions providing for the issuance of bonds and trust indentures may: (1) Contain provisions for protecting and enforcing the rights and remedies of the bondholders, including: (A) The right to the appointment of a receiver for any project or projects upon the default of any principal or interest payment upon the bonds thereof; and (B) The right of any receiver or indenture trustee to enforce collections of rents, revenues, or other charges for the use of the project or projects necessary to pay all costs of operation, the principal and interest on the issue, the costs of collection, and all things reasonably necessary to accomplish the collection of such sums, in the event of any default of the authority; (2) Include covenants setting forth the duties of the authority in relation to the acquisition of the property, the construction of the project, the maintenance, operation, repair, and insurance of the project, and the custody, safeguarding, and application of all moneys; (3) Provide that any project shall be constructed and paid for under the supervision of architects and engineers selected by the authority for such purpose; (4) Require that the security given by contractors and by any depository of the proceeds of the bonds or revenues or other moneys be satisfactory to such purchasers; and (5) Contain provisions concerning the conditions, if any, upon which additional bonds may be issued. (c) It shall be lawful for any bank or trust company incorporated under the laws of this state to act as depository and to furnish such indemnifying bonds or pledge such securities as may be required by the authority. Such indenture may set forth the right and remedies of the bondholders and of the trustee and may restrict the individual right of action of bondholders as is customary in trust indentures securing bonds and debentures of corporations. In addition, such trust indenture may contain such other provisions as the authority deems advisable, reasonable, and proper for the security of the bondholders. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation, and repair of the project affected by such indenture or as an administrative expense of the authority.

Disclaimer: These codes may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.