2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-37.1 - Industrial Facilities Corporation
§ 45-37.1-7 - Security for bonds and notes – Construction and acquisition of projects.

SECTION 45-37.1-7

   § 45-37.1-7  Security for bonds and notes – Construction and acquisition of projects. – (a) The principal of and interest on any bonds or notes issued by the corporation may be secured by a pledge of any revenues and receipts of the corporation and may be secured by a mortgage or deed of trust or trust indenture covering all or any part of a project, including any additions, improvements, extensions to or enlargements of any projects thereafter made. The bonds or notes may also be secured by an assignment of the lease or other financing agreement, with respect to any project for the construction and acquisition of which the bonds or notes are issued, and by an assignment of the revenues and receipts derived by the corporation from the lease or other financing agreement. The resolution under which the bonds or notes are authorized to be issued and the mortgage, deed of trust, trust indenture, lease, or other financing agreement may contain agreements and provisions respecting the maintenance of the projects covered by them, the fixing and collection of rents or other revenues for any portions of them leased or sold by the corporation to others, the creation and maintenance of special funds from those revenues, and the rights and remedies available in the event of default, all as the corporation deems advisable and not in conflict with the provisions hereof. Each pledge, agreement, mortgage, deed of trust, and trust indenture made for the benefit or security of any of the bonds or notes of the corporation are valid and binding from the time the pledge is made, and shall continue to be in effect until the principal of and interest on the bonds or notes for the benefit of which the bonds or notes were made have been fully paid, or until provision has been made for payment in the manner provided in the resolution or resolutions under which the bonds or notes may be authorized. The revenues, moneys, or property pledged by the corporation are immediately subject to the lien of a pledge without any physical delivery or further act, and the lien of the pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. In the event of a default in the payment of the principal of and interest on any bonds or notes or in any agreements of the corporation made as a part of the contract under which the bonds or notes are issued, whether contained in the proceedings authorizing the bonds or notes or in any instrument executed as security for them, the rights of affected bondholders or noteholders may be enforced by mandamus, the appointment of a receiver in equity, or by foreclosure of the mortgage, deed of trust, or other instrument, or any one or more of those remedies or any other remedy provided in the proceedings.

   (b) The corporation may provide, in any proceedings under which bonds or notes may be authorized, that any project, or part thereof, or any addition, improvement, extension, or enlargement, may be constructed by the corporation or the lessee or other occupant of the project or any designee of the corporation, the lessee, or other occupant of the project, or of any of them, and may also provide in the proceedings for the time and manner of and requisites for disbursements to be made for the cost of the construction and acquisition, and for all the certificates and approvals of construction and disbursements as the corporation deems necessary and provides for in the proceedings.