(a) The pledge of assets or revenue of the corporation to the payment of the principal or interest on bonds of the corporation is valid and binding from the time the pledge is made and the assets or revenue are immediately subject to the lien of the pledge without physical delivery or further act. The lien of a pledge is valid and binding against all parties having claims of any kind against the corporation, irrespective of whether those parties have notice of the lien of the pledge.
(b) Nothing in this section prohibits the corporation from selling assets subject to a pledge, except that a sale may be restricted by the trust agreement or resolution providing for the issuance of the bonds.
Section: Previous 42.40.600 42.40.610 42.40.620 42.40.630 42.40.640 42.40.650 42.40.660 42.40.670 42.40.675 42.40.680 42.40.690 42.40.695 42.40.700 NextLast modified: November 15, 2016