§ 14-234-505 — Ordinances - Additional provisions

(a) The several ordinances authorized in the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinances. These provisions will be binding. (b) The priorities as between successive issuance of revenue bonds may also be controlled by the provisions of the ordinances. (c) The ordinances may also, if deemed desirable, provide for the execution of an indenture, contemporaneously with the execution of the bonds, by the several municipalities: (1) Defining the rights of the bondholders inter sese; (2) Appointing a trustee for the bondholders, which trustee may be a foreign or domestic corporation, vesting in that trustee, to the extent deemed advisable, all rights of action under the bonds; (3) Providing for the priority of lien as between successive bond issues; (4) Providing for the acceleration of bond maturities, and containing any covenants on the part of the municipalities relating to the acquisition or construction of the waterworks systems, or the application or safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and (5) Containing any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this subchapter and which may be deemed desirable.

Legislative History

Acts 1955, No. 414, § 13; A.S.A. 1947, § 19-4251.