(1) The principal of and interest on bonds that a local building authority issues under this part: (a) shall be secured by a pledge and assignment of the revenue that the local building authority receives under its lease agreement with respect to the project that was financed with the bond proceeds; (b) may be secured by: (i) a mortgage covering some or all of the project; (ii) a pledge and assignment of the lease agreement for that project; (iii) money held in a reserve fund; and (iv) any other security device with respect to the project that the local building authority considers most advantageous.

(a) shall be secured by a pledge and assignment of the revenue that the local building authority receives under its lease agreement with respect to the project that was financed with the bond proceeds;

(b) may be secured by: (i) a mortgage covering some or all of the project; (ii) a pledge and assignment of the lease agreement for that project; (iii) money held in a reserve fund; and (iv) any other security device with respect to the project that the local building authority considers most advantageous.

(i) a mortgage covering some or all of the project;

(ii) a pledge and assignment of the lease agreement for that project;

(iii) money held in a reserve fund; and

(iv) any other security device with respect to the project that the local building authority considers most advantageous.

(2) A proceeding under which a mortgage is given to secure the bonds of a local building authority may contain any agreement or provision listed in Section 17D-2-503 that could be contained in a proceeding under which a local building authority is authorized to issue bonds under this part.

(3) A mortgage to secure bonds issued by a local building authority under this part may provide that: (a) upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law; and (b) the trustee or holder of any bond secured by the mortgage may become the purchaser at a foreclosure sale, if the trustee or holder is the highest bidder.

(a) upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law; and

(b) the trustee or holder of any bond secured by the mortgage may become the purchaser at a foreclosure sale, if the trustee or holder is the highest bidder.