|
agreement may pledge or assign, in whole or in part, the revenues |
| and other money held or to be received by the district and any |
| account and contract or other rights to receive the same, whether |
| then existing or coming into existence and whether then held or |
| acquired by the district, and the proceeds from the bonds, but the |
| resolution or trust agreement may not convey or mortgage the sewer |
| system or any other properties of the district. The resolution may |
| also contain provisions for protecting and enforcing the rights and |
| remedies of the bondholders that are reasonable and proper and not |
| in violation of law, including, but not limited to, covenants |
| setting forth the duties of the district and the board of trustees |
| in relation to the acquisition, construction, reconstruction, |
| improvement, repair, maintenance, operation and assurance of its |
| sewer system or any of its other properties; the fixing and |
| revising of rates, fees and charges; the application of the |
| proceeds of bonds; the custody, safeguarding and application of |
| revenues; the defining of defaults and providing for remedies in |
| the event of defaults, which may include the acceleration of |
| maturities; the establishment of reserves; and the making and |
| amending of contracts. The resolution or trust agreement may set |
| forth the rights and remedies of the bondholders and of the |
| corporate trustee, if any, and may restrict the individual right of |
| action by bondholders as is customary in trust agreements or trust |
| indentures securing bonds or debentures of corporations. In |
| addition, the resolution or trust agreement may contain such other |
| provisions as the board of trustees determines reasonable and |
| proper for the security of the bondholders. All expenses incurred |
| in carrying out the resolution or trust agreement may be treated as |
| a part of the cost of operation. The pledge by any resolution or |
| trust agreement is valid and binding and is deemed continuously |
| perfected for the purposes of the Uniform Commercial Code from the |
| time when the pledge is made. All revenues, money, rights and |
| proceeds so pledged and received by the district are immediately |
| subject to the lien of the pledge without any physical delivery or |
| segregation of the pledge or further action under the Uniform |
| Commercial Code or otherwise. The lien of the pledge is valid and |
| binding against all parties having claims of any kind in tort, |
| contract or otherwise against the district irrespective of whether |
| those parties have notice of the lien of the pledge. |
