5-535. Securing principal and interest; refunding bonds

A. In connection with issuing state lottery revenue bonds authorized by this article and to secure the principal and interest on the bonds, the director may:

1. Segregate the state lottery revenue bond debt service fund into one or more accounts and subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the state lottery revenue bond debt service fund or into any account or subaccount in the fund.

2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the state lottery revenue bond debt service fund and paid into the state lottery fund to be placed in the state lottery bond debt service fund as provided in this article and pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the state lottery revenue bond debt service fund, in any account or subaccount in the state lottery revenue bond debt service fund or in the state lottery revenue bond proceeds fund as is necessary to secure and pay the principal, the interest and any premium on the bonds as they come due.

3. Establish priorities among bondholders based on criteria adopted by the director.

4. Set aside, regulate and dispose of reserves and sinking accounts.

5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.

6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues authorized by this article and available to the director.

7. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds.

8. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds.

9. Refund any bonds issued by the director by issuing new bonds, if these bonds are secured from the same source of revenues as the bonds authorized by this article.

10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article.

B. If state lottery revenue bonds are issued, the director shall provide to the state lottery commission a schedule of the amount needed to pay each fiscal year's debt service on outstanding state lottery revenue bonds, including sinking fund and reserve fund deposits pursuant to the terms of the bonds, bond related expenses and amounts payable with respect to bond related obligations.