Title 45
Towns and Cities

Chapter 27
Housing Authority Bonds and Obligations

§ 45-27-9. Terms includible in bonds or obligations.

In connection with the issuance of bonds and/or the incurring of any obligations under a lease, and in order to secure the payment of those bonds and/or obligations, the authority has power:

(1) To pledge by resolution, trust indenture, mortgage (subject to limitations imposed), or other contract all or any part of its rents, fees, or revenues.

(2) To covenant against mortgaging all or any part of its property, part of its property, real or personal, then owned or acquired, or against permitting or suffering any lien on its property.

(3) To covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any housing project or any part of the project, or with respect to limitations on its right to undertake additional housing projects.

(4) To covenant against pledging all or any part of its rents, fees, and revenues to which its right then exists or the right to which may come into existence, or against permitting or suffering any lien on them.

(5) To provide for the release of property, rents, fees, and revenues from any pledge or mortgage, and to reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage.

(6) To covenant as to the bonds to be issued pursuant to any resolution, trust indenture, mortgage, or other instrument and as to the issuance of bonds in escrow or otherwise, and as to the use and disposition of the proceeds.

(7) To covenant as to what other, or additional debt, may be incurred by it.

(8) To provide for the terms, form, registration, exchange, execution, and authentication of bonds.

(9) To provide for the replacement of lost, destroyed, or mutilated bonds.

(10) To covenant that the authority warrants the title to the premises.

(11) To covenant as to the rents and fees to be charged, the amount (calculated as may be determined) to be raised each year, or other period of time, by rents, fees, and other revenues, and as to the use and disposition to be made of these revenues.

(12) To covenant as to the use of any or all of its property, real or personal.

(13) To create or to authorize the creation of special funds in which there shall be segregated:

(i) The proceeds of any loan and/or grant;

(ii) All of the rents, fees, and revenues of any housing project or projects or parts of those revenues;

(iii) Any moneys held for the payment of the costs of operation and maintenance of the housing projects, or as a reserve for the meeting of contingencies in the operation and maintenance of the housing projects;

(iv) Any moneys held for the payment of the principal and interest on its bonds or the sums due under its leases and/or as a reserve for those payments; and

(v) Any moneys held for any other reserves or contingencies, and to covenant as to the use and disposal of the moneys held in those funds.

(14) To redeem the bonds, and to covenant for their redemption and to provide the terms and conditions for their redemption.

(15) To covenant against extending the time for the payment of its bonds or interest on them, directly or indirectly, by any means or in any manner.

(16) To prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given.

(17) To covenant as to the maintenance of its property, its replacement, the insurance to be carried on the property, and the use and disposition of insurance moneys.

(18) To vest in an obligee of the authority the right, in the event of the failure of the authority to observe or perform any covenant on its part to be kept or performed, to cure the default and to advance any moneys necessary for that purpose, and the moneys so advanced may be made an additional obligation of the authority with interest, security, and priority as may be provided in any trust indenture, mortgage, lease, or contract of the authority with reference thereto.

(19) To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds become or may be declared due before maturity, and to the terms and conditions upon which that declaration and its consequences may be waived.

(20) To covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation.

(21) To covenant to surrender possession of all or any part of any housing project or projects upon the happening of an event of default (as defined in the contract), and to vest in an obligee the right without judicial proceedings to take possession and to use, operate, manage, and control the housing projects or any part of the projects, and to collect and receive all rents, fees, and revenues arising from the housing projects in the same manner as the authority itself might do, and to dispose of the moneys collected in accordance with the agreement of the authority with the obligee.

(22) To vest in a trustee or trustees the right to enforce any covenant made to secure, pay, or in relation to the bonds, provide for the powers and duties of the trustee or trustees, to limit liabilities, and provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce the covenant.

(23) To make covenants other than and, in addition to, the covenants expressly authorized, of like or different character.

(24) To execute all instruments necessary or convenient in the exercise of the powers granted or in the performance of its covenants or duties, which may contain covenants and provisions, in addition to previously above specified, as the government or any purchaser of the bonds of the authority may reasonably require.

(25) To make covenants and to do any and all acts and things that may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the authority tend to make the bonds more marketable; notwithstanding that the covenants, acts, or things may not be enumerated in this section; it being the intention to give the authority power to do all things in the issuance of bonds and in the provisions for their security that are not inconsistent with the constitution of the state, and no consent or approval of any judge or court shall be required; provided, that the authority has no power to mortgage all or any part of its property, real or personal, except as provided in § 45-27-10.