BLAIR LEE III, Acting Governor

621

bonds issued under the provisions of §§ 27A—27J, inclusive,
of this subtitle shall be used or appropriated for the
payment of the interest on or the principal of such bonds;
provided, however, that all or any part of the fees, rents,
charges and revenues received from the use of the related
facilities in the housing unit or housing units constructed
from the proceeds of the bonds issued under the provisions
of §§ 21k—21J, inclusive, of this subtitle, may at the
option of said University be excluded from such use and
appropriation; and provided, further, that prior to and
during construction and for one year after completion of
construction of any housing unit or housing units for which
bonds have been issued, the interest on such bonds may be
paid out of the proceeds of such bonds and/or out of such
other moneys as may be allocated for such purpose.

27D. Same—Trust agreement securing bonds.

In the discretion of said University any bonds issued
under the provisions of §§ 27A—27J, inclusive, of this
subtitle, may be secured by a trust agreement by and between
said University and a corporate trustee, which may be any
trust company or bank having the powers of a trust company
within or without the State- Any such trust agreement may
pledge or assign the income, fees, rents, charges and other
revenues to be received from the use of the housing unit or
housing units (including the related facilities) in
connection with which the bonds secured by such trust
agreement shall be issued, but shall not convey or mortgage
any housing unit or any part thereof. Any such trust
agreement or any 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,
including covenants setting forth the duties of said
University in relation to the acquisition of property and
the construction, improvement, maintenance, repair,
operation and insurance of the housing unit or housing units
in connection with which such bonds shall have been
authorized, and the custody, safeguarding and application of
all moneys, and provisions for the employment of independent
consultants in connection with the construction or operation
of such housing unit or housing units- It shall be lawful
for any bank or trust company incorporated under the laws of
the State which may act as depository of the proceeds of
bonds or of revenues to furnish such indemnifying bonds or
to pledge such securities as may be required by said
University. Any such trust agreement may set forth the
rights and remedies of the bondholders and of the trustee,
and may restrict the individual right of action by
bondholders as is customary in trust agreements or trust
indentures securing bonds and debentures of corporations.
In addition to the foregoing, any such trust agreement may
contain such other provisions as said University may deem
reasonable and proper for the security of the bondholders,
including covenants to abandon, restrict or prohibit the
construction or operation of competing facilities. All
expenses incurred in carrying out the provisions of any such