The corporation may use trust agreements, indentures, and related contracts to secure bonds and manage bond-related risk, subject in some cases to State Bond Commission approval.
§1800.29. Bonds; security; trust agreement; indenture; ancillary contracts; interest rate swap agreements A. In the discretion of the corporation, any bonds issued by it may be secured by a trust agreement or indenture by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or indenture or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received from any lease of the public facilities. A Form UCC-1 need not be filed. Such trust agreement, indenture, or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law. Any such trust agreement, indenture, or resolution may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict the individual right of action of bondholders. In addition to the foregoing, any such trust agreement, indenture, or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security of bondholders. B.(1) The corporation may enter into, amend, or terminate, as it determines to be necessary or appropriate, any ancillary contracts: (a) To facilitate the issuance, sale, resale, purchase, repurchase or payments of bonds, including without limitation bond insurance, letters of credit, guaranty agreements, surety bonds, and liquidity facilities. (b) To attempt to hedge risk or achieve a desirable effective interest rate or cash flow, subject to the approval of the State Bond Commission. (2) The determination of the board, so approved, that an ancillary contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. Such contracts shall be made upon the terms and conditions established by the board and approved by the State Bond Commission, including without limitation provisions as to security, default, termination, payment, remedy and consent to service of process. C. The corporation may enter into, amend or terminate, any swap contract that it determines to be necessary or appropriate to place the obligations or investments of the corporation, as represented by the bonds or the investment of their proceeds, in whole or in part, on the interest rate, cash flow or other basis desired by the board, which contract may include without limitation contracts commonly known as interest rate swap agreements, futures or contracts providing for payments based on levels of, or changes in, interest rates, and any other derivative product, subject to approval of the State Bond Commission, including specific approval of the necessity, amount, and the recipient of fees or other charges associated with any of the contracts, agreements, or products. The determination of the board, so approved, that a swap contract or the amendment or termination thereof is necessary or appropriate as aforesaid shall be conclusive. These contracts and arrangements may contain such payment, security, default, remedy, and other terms and conditions as determined by the board and approved by the State Bond Commission, after giving due consideration to the creditworthiness of the counterparty or other obligated party, including any rating by any nationally recognized rating agency, and any other criteria as may be appropriate. Acts 2010, No. 556, §1.