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<br />1806
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<br />Water and Irrigation
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<br />Ch. 435
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<br />(k) To covenant as to the rates to be established and charged and the
<br />amount to be raised each year or other period of time by such charges and
<br />as to the use and disposition to be made thereof;
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<br />(1) To covenant to create or authorize the creation of special funds or
<br />moneys to be held in pledge or otherwise for construction. operating
<br />expenses. payment or redemption of bonds or notes, reserves, or other pur-
<br />poses and as to the use, investment, and disposition of the moneys held in
<br />such funds;
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<br />(m) To establish the procedure, if any, by which the terms of any contract
<br />or covenant with or for the benefit of the holders of bonds or notes may
<br />be amended Or abrogated, the amount of bonds or notes the holders of which
<br />must consent thereto, and the manner in which such consent may be given;
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<br />(0) To covenant as to the construction, improvement, operation. or
<br />maintenance of its real and personal property, the replacement thereof, the
<br />insurance to be carried thereon, and the use and disposition of insurance
<br />moneys;
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<br />(0) To provide for the release of property, leases, or other agreements;
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<br />(P) To provide for the rights and liabilities and the powers and duties aris-
<br />ing upon the breach of any covenant, condition, or obligation and to prescribe
<br />the events of default and the terms and conditions upon which any or all
<br />of the bonds, notes, or other obligations of the authority shall become or
<br />may be declared due and payable before maturity and the terms and condi-
<br />tions upon which any such declaration and its consequences may be waived;
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<br />(q) To vest in a trustee or trustees within or without the state such prop-
<br />erty, rights, powers, and duties in trust as the authority may determine,
<br />including the right to foreclose any mortgage, and to limit the rights, duties,
<br />and powers of such trustee;
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<br />(r) To execute all bills of sale, conveyances, deeds of trust, and other
<br />instruments necessary or convenient in the exercise of its powers or in the
<br />performance of its covenants or duties;
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<br />(s) To pay the costs or expenses incident to the enforcement of such
<br />bonds or notes or of the provisions of such resolution or of any covenant
<br />or agreement of the authority with the holders of its bonds or notes;
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<br />(t) To limit the powers of the authority to construct, acquire, or operate
<br />any structures, facilities, or properties which may compete or tend to com-
<br />pete with the project;
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<br />(u) To limit the rights of the holders of any bonds or notes to enforce
<br />any pleoge or covenant securing bonds or notes; and
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<br />(v) To make covenants other than those expressly authorized in this
<br />section, of like or different character, and to make such covenants to do
<br />or refrain from doing such acts and things as may be necessary, or convenient
<br />and desirable, in order to better secure bonds or notes or which, in the abso-
<br />lute discretion of the authority, will tend to make bonds or notes more
<br />marketable, notwithstanding that such covenants, acts, or things may not be
<br />enumerated in this section.
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<br />Ch. 435
<br />
<br />Water and Irrigation
<br />
<br />1807
<br />
<br />37-95-111. Pledge of revenues, funds, or other property. lien. Any pledge
<br />of revenues, moneys, funds, or other property made by the authority shall
<br />be valid and binding from the time when the pledge is made; the revenues,
<br />moneys, funds, or other property so pledged and thereafter received by the
<br />authority shall immediately be subject to the lien of such pledge without any
<br />physical delivery thereof or further act, and the lien of any such pledge shall
<br />be valid and, binding as against all parties having claims of any kind in tort,
<br />contract, or otherwise against the authority, irrespective of whether such par-
<br />ties have notice thereof. Neither the resolution nor any other instrument by
<br />which a pledge of revenues, moneys, or funds is created need be filed or
<br />recorded, except in the records of the authority.
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<br />37-95-112. Personal liability. Neither the members of the board nor any
<br />person executing bonds or notes issued pursuant to this article shall be liable
<br />personally on such bonds or notes by reason of the issuance thereof.
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<br />37-95-113. Special funds. (I) The board may, by resolution, establish one
<br />or more special funds, referred to in this section as "debt service reserve
<br />funds", and may pay into such debt service reserve funds:
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<br />(a) Any moneys appropriated and made available by the state for the pur-
<br />poses of such debt service reserve funds;
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<br />(b) Any proceeds from the sale of notes or bonds to the extent provided
<br />in the resolutions of the board authorizing the issuance thereof; and
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<br />(c) Any moneys which may be made available to the authority from any
<br />other sources for the purposes of such debt service reserve funds.
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<br />(2) All moneys held in any debt service reserve fund, except as otherwise
<br />required in this section, shall be used solely for the payment of the principal
<br />of the bonds or of the sinking fund payments mentioned in this section with
<br />respect to such bonds, the purchase or redemption of such bonds, the pay-
<br />ment of interest on such bonds, or the payment of any redemption premium
<br />required to be paid when such bonds are redeemed prior to maturity; except
<br />that moneys in any such fund shall not be withdrawn at any time in such
<br />amount as would reduce such fund to less than the debt service reserve fund
<br />requirement, except for the purpose of making with respect to such bonds
<br />principal, interest, redemption premium, and sinking fund payments for the
<br />payment of which other moneys of the authority are not available.
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<br />(3) Any income or interest earned by. or incremeat to, any debt service
<br />reserve fund due to the investment thereof may be transferred to other funds
<br />or accounts of the authority to the extent it does not reduce the amount of
<br />such debt service reserve fund below the debt service reserve fund require-
<br />ment.
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<br />(4) (a) The authority may provide by resolution that it shall not issue
<br />bonds at any time if, as determined by.resolution, the maximum or the aver-
<br />age (either of which may be referred to in this section as "debt service
<br />reserve fund requirement") of the respective amounts for the then current
<br />or any future fiscal year of the authority of annual debt service with respect
<br />to bonds secured by such debt service reserve fund will exCeed the amount
<br />of such fund at the time of issuance of such bonds, unless the authority,
<br />at the time of issuance of such bonds, deposits in such fund from the pro-
<br />ceeds of the bonds so to be issued, or other sources, an amount which,
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