RSA 162-I:7 · Security Documents

162-I:7 Security Documents. –

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I.

A security document may:

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(a)

Contain an assignment, pledge, mortgage or other encumbrance of all or part of the authority's interest in, or right to receive payments with respect to, an eligible facility under a financing document;

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(b)

Bear any appropriate title;

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(c)

Provide for a trustee for the benefit of holders of bonds issued to finance an eligible facility;

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(d)

Be combined with a financing document as one instrument;

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(e)

Contain covenants of the authority as to:

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(1)

The creation and maintenance of reserves;

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(2)

The issuance of other bonds with respect to the eligible facility;

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(3)

The custody, investment and application of moneys;

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(4)

The disposition of insurance or condemnation proceeds;

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(5)

The use of surplus bond proceeds;

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(6)

Action by the authority in the event of a default by the user under the financing document;

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(7)

The subjecting of additional property to the lien of the security document; or

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(8)

Any other matter which affects the security for the bonds in any way; or

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(f)

Limit the rights of bondholders to enforce obligations of the authority under the security documents or the financing document.

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II.

Any assignment, pledge, mortgage or other encumbrance of all or part of the authority's right to receive payments with respect to an eligible facility contained in a security document shall be fully effective and perfected from the time when the security document is executed with or without any subsequent physical delivery or segregation of the money and without any filing or recording under RSA 382-A or otherwise. Source. 1975, 98:1. 1981, 213:7; 455:7. 1987, 351:2, eff. July 24, 1987.

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