§ 14-232-108 — Receivership

(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 any project acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of revenue bonds issued under this chapter. (b) The receiver shall have the power to operate and maintain the project and to charge and collect rates and charges sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of all costs of receivership and operating expenses of the project, and to apply the income and revenues derived from the project in conformity with this chapter and the ordinance or indenture authorizing or securing the bonds. (c) When the default has been cured, the receivership shall be ended and the properties returned to the county or municipality. (d) The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds and the holders and registered owners of the bonds in the order, ordinance, or indenture authorizing or securing the bonds. It shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from the project as specified in and fixed by the order, ordinance, or indenture authorizing or securing successive bond issues.

Legislative History

Acts 1971, No. 238, § 6; A.S.A. 1947, § 82-2718.