Section 37935 Of Chapter 3. Bonds And Notes From California Health And Safety Code >> Division 24. >> Part 13. >> Chapter 3.
37935
. In the discretion of the local agency, any bonds issued
under the provisions of this part may be secured by a trust agreement
by and between the local agency and a corporate trustee or trustees,
which may be any trust company or bank having the powers of a trust
company within or without this state. Such trust agreement or the
resolution providing for the issuance of such bonds may pledge or
assign the revenues to be received or proceeds of any contract or
contracts pledged, and may convey or mortgage any residence the
rehabilitation, construction, or acquisition of which is to be
financed out of the proceeds of such bonds. Such trust agreement or
the resolution providing for the issuance of the bonds may provide
for the assignment to such corporate trustee or trustees of loans,
deeds of trust, or mortgages, to be held by such trustee or trustees
on behalf of the local agency for the benefit of the bondholders.
Such trust agreement or resolution providing for the issuance of
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, including such provisions as may
be included in any resolution or resolutions of the local agency
authorizing the issuance of bonds pursuant to Section 37932. Any bank
or trust company doing business under the laws of this state which
may act as depositary of the proceeds of bonds or of revenues or
other moneys may furnish such indemnity bonds or pledge such
securities as may be required by the local agency. Any such trust
agreement may set forth the rights and remedies of the bondholders
and of the trustee or trustees, and may restrict the individual right
of action by bondholders. In addition to the foregoing, any such
trust agreement or resolution may contain such other provisions as
the local agency may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions
of such trust agreement or resolution may be treated as a part of
the cost of residential rehabilitation.