2009 Rhode Island Code
Title 45 - Towns and cities
CHAPTER 45-54 - Municipal Detention Facility Corporations
§ 45-54-11 - Trust agreement.
§ 45-54-11 Trust agreement. In the discretion of the corporation, any bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. The trust agreement or the resolution providing for the issuance of the bonds may pledge or assign the revenues to be received and may convey, or mortgage or grant, a security interest in any project or any part of it or any combination of projects or parts of them. The trust agreement or resolution providing for the issuance of the bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders or noteholders as may be reasonable and proper and not in violation of law, including: covenants establishing the duties of the corporation in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of the project or projects in connection with which the bonds have been authorized, and in relation to the custody, safeguarding, and application of all moneys; and conditions or limitations with respect to the issuance of additional bonds. It is lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of bonds or of revenues to furnish indemnifying bonds or to pledge those securities that may be required by the corporation. Any trust agreement may establish the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the preceding, any trust agreement or resolution may contain any other provisions that the corporation may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of the trust agreement or resolution may be treated as a part of the corporation's cost of operation and maintenance.
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