In the discretion of the city, any bonds issued under the provisions of this chapter may be secured by indenture provisions in the resolution of issuance by and between the city and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within the state and the resolution of issuance may contain such provisions which are customarily found in indentures including, without limitation, the provisions hereinafter set forth. The resolution of issuance may vest in bondholders the right to remove and appoint a new trustee or trustees. The trustee or trustees may, at any time, own all or any part of the bonds unless otherwise provided in the resolution of issuance. The resolution of issuance may vest in the trustee or trustees, in trust or as agents, as provided therein and as consistent with other provisions of this section, property, rights, powers and duties and may provide that the revenues and any other rights be pledged as security for repayment of the bonds, subject to such agreements with bondholders as may then exist. The resolution of issuance may contain covenants of the city as to the acquisition of property, the disposition of any property or part thereof, the subjecting of additional property to the lien thereof, the issuance of additional bonds, the custody, investment and application of all moneys, the creation and maintenance of reserves, the disposition of insurance or condemnation proceeds and the use of surplus bond proceeds. Any such resolution of issuance may define events of default thereunder, which may include events of default by a company under the project agreements, may specify the action to be taken by the city upon an event of default, 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, any such resolution of issuance may contain such other provisions as the city may deem reasonable and proper and which relate in any way to the security or protection of bondholders. All expenses incurred in carrying out the provisions of such resolution of issuance shall be treated as an administrative expense. Any interest in property established by any resolution of issuance shall be valid and binding from the date thereof and any revenues or amounts to cover administrative expenses received by or on behalf of the city thereunder shall immediately be subject to the lien thereof without any further act, which lien shall be valid and binding as against all persons, irrespective of notice, without any filing or recording except a filing in the records of the city. All revenues, excepting (unless otherwise provided) bond proceeds shall further be deemed to be trust funds and all revenues shall be held and applied solely as provided in such resolution of issuance, but no bondholder shall, as such, be in any manner obligated to see to the proper application thereof.
(1995 Code, § 12.04.140)