The Authority’s bonds shall no longer be considered outstanding and unpaid and shall be deemed fully met and discharged for the purposes of § 34-2202.07(e) and the security provided by the pledges of and liens on, revenues, assets, and property, if the Authority: Deposits with an escrow agent, which shall be a bank, trust company, or national banking association with requisite trust powers, in a separate defeasance escrow account, established and maintained by the escrow agent solely at the expense of the Authority and held in trust for the bond owners, sufficient moneys or direct obligations of the United States, principal of and interest on which, when due and payable, will provide sufficient moneys, together with moneys so deposited, to pay when due the principal and interest of bonds issued by the Authority to be defeased; and Delivers to the defeasance escrow agent an irrevocable letter of instruction to apply the moneys or investments to the payment of the principal of and interest on the bonds issued by the Authority to be defeased as they become due and payable. The defeasance escrow agent shall not invest the defeasance escrow account in any investment callable at the option of its issuer if the call could result in less than sufficient moneys being available for the purposes required by this section. The defeasance escrow account specified in subsection (a) of this section may be established and maintained without regard to any limitations placed on these accounts by any act or resolution of the Authority now existing or adopted after April 9, 1997, except for this chapter.
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