Delaware Code Title 29 Sec. 8757A – Covenants with bondholders
(a) The Authority shall have the power to covenant and to agree with the holders of bonds in order to secure the payment of such bonds, as to:
(1) The custody, security, use, expenditure, investment or application of the proceeds of bonds;
(2) The use, regulation, operation, maintenance, insurance or disposition of all or any part of any project;
(3) The payment of the principal, premium, if any, and interest on bonds, the sources and methods of payment thereof, the rank or priority of any such bonds as to any lien or security or the acceleration of the maturity of any such bonds;
(4) The use and disposition of any moneys of the Authority, including all revenues;
(5) The mortgage, pledge, assignment or deposit of all or any part of the revenues or other moneys of the Authority or of all or any part of a project to secure the payment of the principal, premium, if any, and interest on bonds, and the powers and duties of any trustee or agent with regard thereto;
(6) The segregation of revenues or other moneys of the Authority into reserves and sinking funds, and the source, custody, investment, security, regulation, application and disposition thereof;
(7) The rents, fees or other charges for the use of any project, including any parts, replacements or improvements thereafter constructed or acquired, and the fixing, establishment, collection and enforcement of the same;
(8) Any limitation on the issuance of additional bonds or on the incurrence of indebtedness of the Authority;
(9) Any vesting in a trustee or trustees, fiscal or escrow agent or agents, within or without the State, or such property, rights, powers and duties as the Authority may determine, and any limitation on the rights, duties and powers of such trustee or agent;
(10) The payment of costs or expenses incident to the enforcement of the bonds, the resolution or any covenant or contract with the holders of bonds;
(11) The procedure, if any, by which the terms of any covenant or contract with, or duty to, the holders of bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given or evidenced; or
(12) Any other matter or course of conduct which, by recital in a resolution, is declared to secure further the payment of the principal, premium, if any, or interest on bonds.
Terms Used In Delaware Code Title 29 Sec. 8757A
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- State: means the State of Delaware. See Delaware Code Title 29 Sec. 8702A
- Trustee: A person or institution holding and administering property in trust.
(b) All such provisions of a resolution and all such covenants and agreements shall constitute valid and legally binding contracts between the Authority and the several holders of bonds to which they relate, regardless of the time of issuance of such bonds.
62 Del. Laws, c. 269, § ?1; 63 Del. Laws, c. 189, § ?5(a); 81 Del. Laws, c. 49, § ?1;