Section 1035. Bonds of the authority  


Latest version.
  • The  bonds,  certificates  of
      indebtedness and other obligations of the authority, unless disposed  of
      to   the  Reconstruction  Finance  Corporation,  the  federal  emergency
      administrator of public works or any other federal agency, shall be sold
      at public sale at  not  less  than  par.  A  resolution  or  resolutions
      authorizing  any  such obligations may contain provisions which shall be
      part of the contract with the holders thereof, which provisions may:
        (a) pledge the revenues of the authority to secure the payment of such
      bonds and agree to maintain adequate rates for such purposes;
        (b) give to any such bonds a prior charge upon such revenues;
        (c) require such revenues to  be  set  aside  for  sinking  funds  and
      reserve funds, safeguarding the deposit, use and investment thereof;
        (d)  limit  or  restrict  the  power of the authority under this title
      insofar as the same may be deemed advisable to  secure  the  payment  of
      such bonds;
        (e)  limit  the power of the authority to issue additional obligations
      or restrict such power by relation to the revenues of the authority  and
      with  respect  to  the  purposes  thereof and the use of the proceeds or
      otherwise;
        (f) authorize the appointment of a trustee or receiver as provided  in
      section  one  thousand forty, limit the rights of bondholders to enforce
      their bonds by independent action, and in the event  of  a  receivership
      require the return of all properties to the authority when the bonds are
      paid or redeemed and all costs paid;
        (g)  contain  any  other  provisions  reasonably  necessary  or deemed
      advisable to secure and provide for the payment of said  bonds  and  the
      rights and remedies of the holders thereof;
        (h)  provide  for  the  form  of  such  bonds,  coupon,  registered or
      registerable coupon, and for ascertaining the owners or holders  thereof
      for any purpose under section one thousand forty or;
        (i)  provide  for the amendment of any such resolution in any respect,
      and the amount of bonds the holders of which  must  consent  thereto  or
      whose  objection  thereto  after published or written notice may prevent
      such amendment.
        * NB Terminated July 1, 1963