§ 14-201-120 — Default in payment of notes or bonds - Receiver

(a) If the commission defaults in the payment of any note or bond issued by it in either principal or interest, the holder of the note or bond or the trustee or mortgagee in any pledge, mortgage, or deed of trust given to secure it may bring suit for the enforcement thereof in the chancery court. Upon the filing of the suit, the holder is entitled to the immediate appointment of a receiver with power to take charge of all property of the commission and to operate it and collect the revenues arising therefrom. (b) The appointment of a receiver shall be made as a matter of right, upon proof only of the default and of the plaintiff's right to bring suit as provided in this section. (c) The receiver may be authorized to charge for service the rates in force at the time of his appointment; but, if the rates have been reduced to the prejudice of persons holding the obligations of the commission, the court may authorize the receiver to charge rates in accordance with the schedule in force when the obligation sued on was contracted, if the restoration of the higher rate is necessary to protect the rights of creditors.

Legislative History

Acts 1957, No. 115, § 12; A.S.A. 1947, § 19-4072.