60-11-1206. Bond covenants. The department may enter into covenants with the bondholders by resolution, trust indenture, or other appropriate instrument to enhance the marketability of the bonds. These covenants may relate to:
     (1) the purpose to which the bond proceeds are to be applied;
     (2) the use and disposition of the revenue of a project to which the bond proceeds are to be applied;
     (3) the issuance of additional bonds to be paid from revenue of a project to which the bond proceeds are to be applied;
     (4) the insurance to be carried on a project to which bond proceeds are to be applied;
     (5) the accounting procedures and auditing powers related to a project;
     (6) the terms and conditions upon which the bondholders are entitled to have a receiver appointed to operate a project to which bond proceeds are to be applied;
     (7) the maintenance of a required capital reserve;
     (8) the granting of a mortgage and security interest in the project and other properties of the borrower to secure the bonds;
     (9) such other matters as the department considers customary and appropriate to secure the bonds.

     History: En. Sec. 6, Ch. 565, L. 1979; amd. Sec. 10, Ch. 486, L. 1981.