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This entry was published on 2014-09-22
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SECTION 19
Security for bonds or notes; construction and acquisition of projects
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 19. Security for bonds or notes; construction and acquisition of
projects. (1) The principal of and interest on any bonds or notes issued
by the corporation may be secured by a pledge of any revenues and
receipts of the corporation and may be secured by a mortgage or other
instrument covering all or any part of a project, including any
additions, improvements, extensions to or enlargements of any projects
thereafter made.

(2) Bonds or notes issued for the acquisition, construction,
reconstruction, rehabilitation, or improvement of a project may also be
secured by an assignment of any lease of or mortgage on such project and
by an assignment of the revenues and receipts derived by the corporation
from any such lease or mortgage.

(3) The resolution under which the bonds or notes are authorized to be
issued and any such mortgage, lease or other instrument may contain
agreements and provisions respecting the maintenance of the projects
covered thereby, the fixing and collection of rents or other revenues
therefrom, including monies received in repayment of mortgage loans, and
interest thereon, the creation and maintenance of special funds from
such rents or other revenues and the rights and remedies available in
the event of default, all as the corporation shall deem advisable.

(4) Each pledge, agreement, mortgage or other instrument made for the
benefit or security of any of the bonds or notes of the corporation
shall continue effective until the principal of and interest on the
bonds or notes for the benefit of which the same were made shall have
been fully paid, or until provision shall have been made for such
payment in the manner provided in the resolution or resolutions under
which the same may be authorized.

(5) The corporation may provide in any proceedings under which bonds
or notes may be authorized that any project or part thereof may be
constructed, reconstructed, rehabilitated or improved by the
corporation, any subsidiary, or any lessee or any designee of the
corporation, and may also provide in such proceedings for the time and
manner of and requisites for disbursements to be made for the cost of
such construction, and for all such certificates and approvals of
construction and disbursements as the corporation shall deem necessary
and provide for in such proceedings.

(6) Any resolution or resolutions or trust indenture or indentures
under which bonds or notes of the corporation are authorized to be
issued may contain provisions for vesting in a trustee or trustees such
properties, rights, powers and duties in trust as the corporation may
determine which may include any or all of the rights, powers and duties
of the trustee appointed by the holders of any issue of notes or bonds
pursuant to section twenty-seven of this act, in which event the
provisions of said section twenty-seven authorizing the appointment of a
trustee by such holders of bonds or notes shall not apply.

(7) It is the intention hereof that any pledge or assignment for
security made by the corporation shall be valid and binding from the
time when the same is made; that the monies or property so pledged or
assigned and then held or thereafter received by the corporation shall
immediately be subject to the lien or security interest of such pledge
or assignment without any physical delivery thereof or further act; and
that the lien or security interest of any such pledge or assignment
shall be valid and binding as against all parties having claims of any
kind in tort, contract or otherwise against the corporation,
irrespective of whether such parties have notice thereof. Neither the
resolution nor any other instrument by which any such pledge or
assignment is created need be recorded, and no filing with respect to
such pledge or assignment need be made under the uniform commercial
code.