2017 Massachusetts General Laws
Section 12 Temporary notes; trust agreements

Universal Citation: MA Gen L ch 161A § 12 (2017)

Section 12. (a) The authority may issue temporary notes under this section (i) to fund temporary cash deficiencies, or (ii) in anticipation of future revenues. The authority shall consult with the state finance and governance board established under section 97 of chapter 6 prior to the sale of any such notes as to the timing and terms thereof.

(b) Any notes issued pursuant to this section shall be payable on or before December 31 of the year following their issue. Such notes shall be general obligations of the authority.

(c) Any notes issued pursuant to under this section shall be secured by a trust agreement 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 the commonwealth. Such trust agreement may contain such provisions for protecting and enforcing the rights and remedies of the noteholders as may be reasonable and proper and not in violation of law, including covenants and negative covenants in relation to the financial operations of the authority and to the custody, safeguarding and application of all monies received by or for the account of the authority. It shall be lawful for any bank or trust company incorporated under the laws of the commonwealth to act as depository of note proceeds or other funds under such trust agreement and to furnish such indemnifying bonds or to pledge such securities as may be required by the authority. Such trust agreement may set forth the rights and remedies of the noteholders and the trustee and may restrict the individual right of action by noteholders. In addition to the foregoing, such trust agreement may contain such other provisions as the authority may deem reasonable and proper for the security of the noteholders.

(d) Any notes issued pursuant to this section shall not have any guaranty, pledge, or support from the commonwealth other than that specified in section 8 of this chapter and section 35T of chapter 10, unless specifically authorized by legislation enacted after July 1, 2000.

(e) Except to the extent limited by the trust agreement, the duties of state officials, the authority and its officials, city and town assessors and other city and town officials under this section or the trust agreement or otherwise relating to the levy, collection, custody, safeguarding and application of the assessments upon the cities and towns and other moneys provided in lieu thereof or in reduction thereof, including the duties of city and town assessors and other city and town officials to raise money for and to pay over the assessments, shall be enforceable in a civil action pursuant to section 5 of chapter 249 brought by the authority or the corporate trustee.

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