New Hampshire Revised Statutes 162-G:6 – Trust Indentures
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I. A trust indenture may contain a mortgage, pledge, or assignment of all or part of any interest or right which the governmental unit may have as the owner or lessor of a business and industrial facility. Any pledge or assignment of a right to receive money which is contained in a trust indenture shall be fully effective from the time when the trust indenture is executed with or without any subsequent physical delivery or segregation of such money and without any filing or recording under the uniform commercial code or otherwise.
II. A trust indenture may also contain covenants of the governmental unit as to:
(a) The creation and maintenance of reserves;
(b) The issuance of other bonds with respect to the business and industrial facility;
(c) The maintenance, repair, and replacement of the business and industrial facility;
(d) The insurance of the business and industrial facility against risk of loss;
(e) The custody, investment, and application of moneys;
(f) The use of surplus bond proceeds;
(g) Action by the governmental unit in the event of a default by the tenant under the lease;
(h) The subjecting of additional property to the lien of the indenture; and
(i) Any other matter which affects the security for the bonds in any way .
III. A trust indenture may limit the rights of bondholders to enforce obligations of the governmental unit under the trust indenture or obligations of the governmental unit or the tenant under the lease.
II. A trust indenture may also contain covenants of the governmental unit as to:
Terms Used In New Hampshire Revised Statutes 162-G:6
- Bond: shall mean an evidence of indebtedness issued by the governmental unit or a business and industrial development authority under this chapter to finance a project in whole or in part or to refund indebtedness incurred for that purpose and which, in the case of business and industrial development authority bonds, is payable solely from revenues, other than taxes or payments in lieu thereof, derived from such project or facility. See New Hampshire Revised Statutes 162-G:3
- Business and industrial facility: shall mean any land, any building or other improvement, and all real and personal properties, including but not limited to, machinery and equipment deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use for commercial, business service, mixed-use development, manufacturing, warehousing, processing wastes, renewable energy, or other business and industrial purposes, but shall not include raw materials, work in process or stock in trade. See New Hampshire Revised Statutes 162-G:3
- Governmental unit: shall mean a city or a town. See New Hampshire Revised Statutes 162-G:3
- Lease: means :
(a) In the case where the authority is the lessor, "lease" shall mean a written instrument to which the authority and a tenant are parties and which provides for the use and occupancy of a business and industrial facility and the payment of rent to the authority. See New Hampshire Revised Statutes 162-G:3 - Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- 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.
- Tenant: shall mean the person primarily liable for the payment of rent under a lease. See New Hampshire Revised Statutes 162-G:3
- Trust indenture: shall mean a written instrument between the governmental unit and any national bank or trust company doing business in the state of New Hampshire or in the Commonwealth of Massachusetts as trustee, which secures one or more series of bonds. See New Hampshire Revised Statutes 162-G:3
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(a) The creation and maintenance of reserves;
(b) The issuance of other bonds with respect to the business and industrial facility;
(c) The maintenance, repair, and replacement of the business and industrial facility;
(d) The insurance of the business and industrial facility against risk of loss;
(e) The custody, investment, and application of moneys;
(f) The use of surplus bond proceeds;
(g) Action by the governmental unit in the event of a default by the tenant under the lease;
(h) The subjecting of additional property to the lien of the indenture; and
(i) Any other matter which affects the security for the bonds in any way .
III. A trust indenture may limit the rights of bondholders to enforce obligations of the governmental unit under the trust indenture or obligations of the governmental unit or the tenant under the lease.