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General Laws

Section 17. (a) The department may provide by resolution at 1 time or from time to time for the issuance of bonds of the department to refinance the bonds issued prior to July 1, 2009 pursuant to chapter 81A and the financing obligations of the Massachusetts Turnpike Authority relating to the turnpike and the metropolitan highway system. Any such bonds shall be special obligations of the department payable solely from monies credited to the fund. Bonds issued pursuant to this section shall not be general obligations of the commonwealth or any political subdivision thereof and shall not constitute a debt or a pledge of the faith and credit of the commonwealth or any such political subdivision.

(b) Bonds may be issued and sold in such manner and on such terms and conditions as the department may determine, with the approval of the secretary of administration and finance. The bonds shall be signed by the chairperson and treasurer of the department or shall bear their facsimile signature and shall bear the official seal of the department or a facsimile thereof, attested to by the signature of a duly appointed officer of the department.

(c) Bonds may be secured by a trust agreement entered into by the department, which trust agreement may pledge or assign all or part of the monies credited to the fund and rights to receive the same, whether existing or coming into existence and whether held or thereafter acquired, and the proceeds thereof. The department may enter into additional security, insurance or other forms of credit enhancement which may be secured on a parity or subordinate basis with the bonds. A pledge in any such trust agreement or credit enhancement agreement shall be valid and binding from the time such pledge shall be made without any physical delivery or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise, whether or not such parties have received notice thereof.

Any such pledge shall be perfected by filing of the trust agreement or credit enhancement agreement in the records of the department, and no filing need be made pursuant to chapter 106. Any such trust agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as may be reasonable and proper, including provisions relating to the establishment of reserves, acceleration of maturities, restrictions on the individual right of action by bondholders and covenants setting forth the duties of and limitations on the department, and may regulate the custody, investment and application of monies.

(d) Any such bonds shall be deemed to be investment securities pursuant to chapter 106, shall be securities in which any public officer, fiduciary, insurance company, financial institution or investment company may properly invest funds and shall be securities which may be deposited with any public custodian for any purpose for which the deposit of bonds is authorized by law.

(e) Any such bonds, their transfer and the income therefrom, including profit on the sale thereof, shall at all times be exempt from taxation by and within the commonwealth.

(f) The provisions hereof relating to bonds shall also be applicable to the issuance of notes insofar as such provisions may be appropriate therefore.

(g) Notwithstanding the foregoing, no existing rights of the holders of the bonds issued by the Massachusetts Turnpike Authority pursuant to chapter 81A shall be impaired hereby, and the department, as successor in interest to the Massachusetts Turnpike Authority, shall maintain the covenants of the trust indentures pertaining to such bonds so long as such bonds shall remain outstanding.

(h) The department shall be subject to section 98 of chapter 6.

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