| The resolution authorizing the issuance of the bonds or the trust |
| agreement may pledge or assign, in whole or in part, the revenues |
| and other money held or to be received by the district and any |
| account and contract or other rights to receive the same, whether |
| then existing or coming into existence and whether then held or |
| acquired by the district, and the proceeds from the bonds, but |
| the resolution or trust agreement may not convey or mortgage the |
| sewer system or any other properties of the district. The |
| resolution may also contain provisions for protecting and |
| enforcing the rights and remedies of the bondholders that are |
| reasonable and proper and not in violation of law, including, but |
| not limited to, covenants setting forth the duties of the |
| district and the board of trustees in relation to the |
| acquisition, construction, reconstruction, improvement, repair, |
| maintenance, operation and assurance of its sewer system or any |
| of its other properties; the fixing and revising of rates, fees |
| and charges; the application of the proceeds of bonds; the |
| custody, safeguarding and application of revenues; the defining |
| of defaults and providing for remedies in the event of defaults, |
| which may include the acceleration of maturities; the |
| establishment of reserves; and the making and amending of |
| contracts. The resolution or trust agreement may set forth the |
| rights and remedies of the bondholders and of the corporate |
| trustee, if any, and may restrict the individual right of action |
| by bondholders as is customary in trust agreements or trust |
| indentures securing bonds or debentures of corporations. In |
| addition, the resolution or trust agreement may contain such |
| other provisions as the board of trustees determines reasonable |
| and proper for the security of the bondholders. All expenses |
| incurred in carrying out the resolution or trust agreement may be |
| treated as a part of the cost of operation. The pledge by any |
| resolution or trust agreement is valid and binding and is deemed |
| continuously perfected for the purposes of the Uniform Commercial |
| Code from the time when the pledge is made. All revenues, money, |
| rights and proceeds so pledged and received by the district are |
| immediately subject to the lien of the pledge without any |
| physical delivery or segregation of the pledge or further action |
| under the Uniform Commercial Code or otherwise. The lien of the |
| pledge is valid and binding against all parties having claims of |
| any kind in tort, contract or otherwise against the district |
| irrespective of whether those parties have notice of the lien of |
| the pledge. |
