I. In the discretion of the governing board of the municipality, but subject to the terms of the authorizing vote, any bonds or notes issued under this chapter may be secured by a resolution of the governing board, which resolution shall constitute a contract with the bondholders, or by a trust agreement between the municipality and a corporate trustee, which may be any trust company or bank having powers of a trust company in the state of New Hampshire or in the commonwealth of Massachusetts, and such trust agreement or resolution shall be in such form and executed in such manner as may be determined by the governing board of the municipality. Such trust agreement or resolution may pledge or assign, in whole or in part, the revenues and other moneys derived or to be derived by the municipality from its small scale power facility and any contract or other rights to receive such revenues and moneys, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the municipality, and the proceeds thereof. Such trust agreement or resolution may contain, with respect to the small scale power facility and its finances, such provisions for protecting and enforcing the rights, security and remedies of the bondholders or noteholders as may be determined by the governing board and not in violation of law, including, without limiting the generality of the foregoing, provisions defining defaults and providing for remedies in the event of default which may include the acceleration of maturities and covenants setting forth duties of, and limitations on, the municipality in relation to the acquisition, construction, improvements, enlargement, alteration, equipping, furnishing, maintenance, use, operation, repair, insurance and disposition of property; the custody, safeguarding, investment, and application of moneys; the issue of additional bonds or notes; the fixing, revision, and collection of fees and charges; the obligations of the municipality to pay for electricity used by it; the use of any surplus bond or note proceeds; the establishment of reserves from bond or note proceeds or revenues; and the replacement of bonds or notes which shall become mutilated or be destroyed or lost. Subject to this chapter, moneys subject to the trust agreement or resolution shall be held, invested, and applied as provided in the trust agreement or resolution, provided that moneys not deposited in trust with a corporate trustee shall be in the custody of the treasurer. Moneys to be applied under the trust agreement or resolution shall be deemed appropriated for the purposes to which they are to be applied and shall be applied without the need for further municipal action under N.H. Rev. Stat. Chapter 32 or otherwise.
II. It shall be lawful for any bank or trust company to act as a depository or trustee of the proceeds of the bonds or notes or of revenues or other moneys under any such trust agreement or resolution and to furnish such indemnifying bonds or to pledge such securities as may be required by the trust agreement or resolution. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as current operating expenses of the facility. The pledge by any such trust agreement or resolution shall be valid and binding and shall be deemed continuously perfected from the time when the pledge is made. The revenues, moneys, rights, and proceeds so pledged and then held or thereafter acquired or received by the municipality shall immediately be subject to the lien of such pledge without any physical delivery or segregation or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the municipality, irrespective of whether such parties have notice of such lien. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded, except in the records of the municipality.