2 DE Code § 1406. (2021)
2021 Delaware Code|Title 2 - Transportation|Chapter 14. Transportation Trust Fund|§ 1406. Covenants with holders of bonds.

§ 1406. Covenants with holders of bonds. In any resolution of the Authority authorizing or relating to the issuance of any bonds, or in any trust agreement securing the bonds, the Authority, in order to secure the payment of the bonds, and in addition to its other powers, shall have the power by provisions therein which shall constitute covenants by the Authority and contracts with the holders of the bonds:  (1) To pledge all or any part of its revenues or receipts to which its right then exists or may thereafter come into existence and other moneys, funds or contracts as the Authority shall determine and the moneys derived therefrom and the proceeds of any bonds; (2) To covenant against pledging all or any part of its revenues or receipts or its agreements and the revenues derived thereunder or the proceeds thereof and other moneys or funds as the Authority shall determine and the moneys derived therefrom or against permitting or suffering any lien on any of the foregoing; (3) To covenant with respect to limitations on any right to sell, lease or otherwise dispose of any property of any kind; (4) To covenant as to any bonds, to be issued and the limitations thereof and the terms and conditions thereof and as to the custody, application, investment and disposition of the proceeds thereof; (5) To covenant as to the issuance of additional bonds or as to limitations on the issuance of additional bonds and on the incurring of other debts by it; (6) To covenant as to the payment of the principal or premium, if any, or interest on the bonds, as to the sources and methods of payment, as to the rank or priority of any bonds, with respect to any lien or security or as to the acceleration of the maturity of any bonds; (7) To provide for the replacement of lost, stolen, destroyed or mutilated bonds; (8) To covenant against extending the time for the payment of bonds or interest thereon; (9) To covenant as to the redemption of bonds and privileges of exchange thereof for other bonds of the Authority; (10) Subject to the rights and security interests of the holders from time to time of bonds theretofore or hereafter issued by the Authority, to covenant as to the enforcement of any term in any agreement, entered into pursuant to this chapter, to which the Authority is a party or an assignee, fixing amounts of funds to be paid over to and received by the Authority in each year or other period of time, including any term concerning the fixing of tolls and other charges on turnpikes as shall be necessary to provide the amounts of funds; (11) To covenant to create or authorize the creation of special funds or moneys to be held in pledge or otherwise for payment or redemption of bond reserves or other purposes and as to the use, investment and disposition of the moneys held in the funds; (12) To establish the procedure, if any, by which the terms of any contract or covenant with or for the benefit of the holders of bonds may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given; (13) To provide for the release of property, agreements or revenues and receipts from any pledge and to reserve rights and ownership in, or the right to dispose of, property which is subject to a pledge; (14) To provide for the rights and liabilities, powers and duties arising upon the breach of any covenant, condition or obligation and to prescribe the events of default and the terms and conditions upon which any or all of the bonds of the Authority shall become or may be declared due and payable before maturity and the terms and conditions upon which any declaration and its consequences may be waived; (15) To vest in a trustee or trustees within or without the State such property, rights, powers and duties in trust as the Authority may determine, and to limit the rights, duties and powers of such trustee; (16) To execute all bills of sale, conveyances, deeds of trust and other instruments necessary or convenient in the exercise of its power or in the performance of its covenants or duties; (17) To pay the costs or expenses incident to the enforcement of the bonds or of the resolution or of any covenant or agreement of the Authority with the holders of its bonds; (18) To limit the rights of the holders of any bonds to enforce any pledge or covenant securing the bonds; and (19) To make covenants, in addition to the covenants herein expressly authorized, of like or different character, and to make covenants to do or refrain from doing acts and things as may be necessary, or convenient and desirable, in order to better secure bonds or which in the absolute discretion of the Authority will tend to make bonds more marketable, notwithstanding that the covenants, acts or things may not be enumerated herein.66 Del. Laws, c. 87, §  1;