<?xml version='1.0' encoding='utf-8'?>
<section article="ghs" article_name="Housing and Community Development" number="12-704" title_number="12" title_name="Provisions of Statewide Applicability" subtitle_number="7" subtitle_name="Bonds">
  <level label="a">
    <text>In connection with issuing bonds or incurring obligations under leases, and to secure payment of the bonds or obligations, an authority, in addition to its other powers, may:</text>
    <level label="1">
      <text>pledge any or all of the gross or net rents, fees, or revenues that are or will become due to it;</text>
    </level>
    <level label="2">
      <text>mortgage any or all of the real or personal property that it owns or will own;</text>
    </level>
    <level label="3">
      <text>covenant against:</text>
      <level label="i">
        <text>pledging any or all of its rents, fees, or other revenue;</text>
      </level>
      <level label="ii">
        <text>mortgaging any or all of the real or personal property that it owns or will own; or</text>
      </level>
      <level label="iii">
        <text>suffering any lien on anything listed under item (i) or (ii) of this item;</text>
      </level>
    </level>
    <level label="4">
      <text>covenant about limits on its right to sell, lease, or dispose of all or part of a housing project;</text>
    </level>
    <level label="5">
      <text>covenant as to what other debts or obligations it may incur;</text>
    </level>
    <level label="6">
      <text>covenant as to:</text>
      <level label="i">
        <text>the bonds to be issued;</text>
      </level>
      <level label="ii">
        <text>their issuance, in escrow or otherwise; and</text>
      </level>
      <level label="iii">
        <text>the use and disposition of their proceeds;</text>
      </level>
    </level>
    <level label="7">
      <text>provide for the replacement of lost, destroyed, or mutilated bonds;</text>
    </level>
    <level label="8">
      <text>covenant against extending the time for the payment of its bonds or interest on them;</text>
    </level>
    <level label="9">
      <text>redeem the bonds, covenant for their redemption, and provide the terms and conditions for their redemption;</text>
    </level>
    <level label="10">
      <text>covenant, subject to the limitations in this Division II, as to:</text>
      <level label="i">
        <text>the rents and fees to be charged in the operation of a housing project or projects;</text>
      </level>
      <level label="ii">
        <text>the amount to be raised each year or other period by rents, fees, and other revenues; and</text>
      </level>
      <level label="iii">
        <text>the use and disposition of the rents, fees, and other revenues;</text>
      </level>
    </level>
    <level label="11">
      <text>create or authorize the creation of special funds for money held for construction or operating costs, debt service reserves, or other purposes, and covenant as to the use and disposition of the money held in those funds;</text>
    </level>
    <level label="12">
      <text>prescribe any procedure by which the terms of contracts with bondholders may be amended or abrogated, the dollar amount of bonds whose holders must consent to an amendment or abrogation, and the way in which consent may be given;</text>
    </level>
    <level label="13">
      <text>covenant as to the use of any or all of the authority’s real or personal property, the replacement of the property, the insurance to be carried on the property, and the use and disposition of insurance money;</text>
    </level>
    <level label="14">
      <text>covenant as to the rights, liabilities, powers, and duties arising on the breach by it of a covenant, condition, or obligation;</text>
    </level>
    <level label="15">
      <text>covenant and prescribe as to the events of default and terms and conditions on which any or all of its bonds become or may be declared due before maturity, and as to the terms and conditions on which a declaration and its consequences may be waived;</text>
    </level>
    <level label="16">
      <text>vest in a trustee or trustees or in the bondholders or any proportion of them the right to enforce:</text>
      <level label="i">
        <text>payment of the bonds; or</text>
      </level>
      <level label="ii">
        <text>covenants securing or relating to the bonds;</text>
      </level>
    </level>
    <level label="17">
      <text>vest in a trustee or trustees the right, if the authority defaults, to:</text>
      <level label="i">
        <text>take in possession, use, operate, and manage all or part of a housing project;</text>
      </level>
      <level label="ii">
        <text>collect the rents and revenues; and</text>
      </level>
      <level label="iii">
        <text>dispose of the money in accordance with the agreement of the authority with the trustee or trustees;</text>
      </level>
    </level>
    <level label="18">
      <text>provide for the powers and duties of a trustee or trustees and limit the liabilities of the trustee or trustees;</text>
    </level>
    <level label="19">
      <text>provide the terms and conditions on which the trustee or trustees or bondholders or any proportion of them may enforce any covenant or rights securing or relating to the bonds;</text>
    </level>
    <level label="20">
      <text>make other covenants of a character like or unlike that of the covenants expressly authorized under this section; and</text>
    </level>
    <level label="21">
      <text>make covenants and do acts and things that, although not listed in this section:</text>
      <level label="i">
        <text>are necessary, convenient, or desirable to secure the bonds of the authority; or</text>
      </level>
      <level label="ii">
        <text>in the discretion of the authority, will tend to make the bonds more marketable.</text>
      </level>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>A pledge made by an authority is binding from the time the pledge is made.</text>
    </level>
    <level label="2">
      <text>The lien of the pledge, without any physical delivery or further act, attaches immediately to revenues or property pledged and thereafter received by an authority.</text>
    </level>
    <level label="3">
      <text>The lien is binding against all persons having claims against the authority, whether or not:</text>
      <level label="i">
        <text>those persons have notice of the pledge; or</text>
      </level>
      <level label="ii">
        <text>the determination or other instrument has been recorded or filed.</text>
      </level>
    </level>
  </level>
</section>
