§ 14-233-111 — Bonds - Default

(a) (1) In the event of a default in the payment of the principal of, premium on, if any, or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of all or any part of the project in which there is a mortgage lien or security interest securing the bonds in default. (2) The receiver shall have the power and authority to operate and maintain the project, to charge and collect rates, payments, rents, and charges sufficient to provide for the payment of the principal of, premium on, if any, and interest on the bonds, after providing for the payment of any costs of receivership and operating expenses of the project, and to apply the revenues derived from the project in conformity with this chapter and the resolution or trust indenture authorizing or securing the bonds. (3) When the default has been cured, the receivership shall be ended and the project returned to the sanitation authority. (b) 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 and 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 and security interest in, the project as specified in and fixed by the resolutions or trust indentures authorizing or securing successive bond issues.

Legislative History

Acts 1979, No. 699, § 7; A.S.A. 1947, § 82-2737.