§ 14-217-112 — Bonds - Default - Receiver

(a) In the event of a default in the payment of the principal of or interest on any revenue bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the system constructed, in whole or in part, with the proceeds thereof. (b) The receiver shall have the power to operate and maintain the system and to charge and collect rates and rents sufficient to provide for the payment of the principal of and interest on the revenue bonds, after providing for the payment of any costs of receivership and operating expenses of the system, and to apply the revenues derived from the system in conformity with this chapter and the resolution or trust indenture authorizing or securing the revenue bonds. (c) When the default has been cured, the receivership shall be ended and the system returned to the district. (d) The relief afforded by this section, shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the resolution or trust indenture authorizing or securing the bonds. This relief shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, and the mortgage lien on, the system as specified in and fixed by the resolutions or trust indentures authorizing or securing successive bond issues.

Legislative History

Acts 1975, No. 490, § 9; A.S.A. 1947, § 20-1909.