§1339. Corporation additional pledge to financing parties

            A. The corporation shall pledge to and agree with the issuer for the benefit of the issuer, the bondholders, and other financing parties, that until the related bonds and any ancillary agreements have been paid and performed in full, the corporation shall not do any of the following:

            (1) Take or permit any action that impairs or would impair the value of the corporation's beneficial interest in the applicable trust, other than the distributions of dividend income and redemption proceeds contemplated in this Subpart and in the trust agreement.

            (2) Approve or allow a modification or amendment pertaining to the corporation's beneficial interest in the applicable trust, or a termination or rescission of the applicable trust agreement or the applicable trust, or in any other way impair the rights and remedies of the corporation as beneficiary under the applicable trust, provided that nothing shall preclude the distributions of dividend income and the redemption proceeds that are contemplated in this Subpart and in the trust agreement.

            B. For purposes of this Section and R.S. 45:1340, the term "bondholder" means a person who holds a system restoration bond, including in book entry form.

            Acts 2021, No. 293, §3, eff. June 14, 2021.