§ 42-116-18. Lien status - Recording. (a) Notwithstanding any provision of any other law, including the Uniform Commercial Code, title 6A of the general laws:

(1) Any pledge or assignment of revenues of any kind, funds, loan agreements, property, or assets made pursuant to the provisions of this chapter by the corporation is valid and binding against all parties having claims of any kind in tort, contract, or otherwise, whether or not the parties have notice of these claims, and is deemed continuously perfected from the time it is made;

(2) No filing of any kind with respect to the pledge or assignment need be made under the Uniform Commercial Code, title 6A of the general laws, as amended, or otherwise;

(3) Unless otherwise provided in the loan agreement, a pledge of revenues of any kind is deemed to include a pledge of any accounts or general intangibles from which the pledged revenues are derived, whether existing at the time of the pledge or thereafter coming into existence and whether held at the time of the pledge or thereafter acquired by the corporation and the proceeds of the accounts or general intangibles; and

(4) The pledge of revenues of any kind, accounts, and general intangibles is subject to the lien of the pledge without delivery or segregation and the lien of the pledge is valid and binding against all parties having claims of contract or tort or otherwise against the corporation.

(b) A pledge of revenues of any kind under this chapter constitutes a sufficient appropriation of revenues for the purposes of any provision for appropriation and the revenues may be applied as required by the pledge without further appropriation.

(c) For the purposes of this section the word "pledge" is construed to include the grant of a security interest under the Uniform Commercial Code, title 6A of the general laws.

History of Section. (P.L. 1991, ch. 3, § 4.)