§ 14-234-515 — Statutory mortgage lien - Default

(a) (1) There shall be created a statutory mortgage lien upon the several waterworks systems acquired or constructed from the proceeds of bonds authorized to be issued. (2) The lien shall exist in favor of the holder of the bonds, and each of them, and to and in favor of the holder of the coupons attached to the bonds. (3) The waterworks systems shall remain subject to statutory mortgage lien until payment in full of the principal of and interest on the bonds. (b) Subject to whatever restrictions may be contained in the indenture authorized in this subchapter, any holder of bonds issued under the provisions of this subchapter or any coupons representing interest accrued thereon, may, either at law or in equity, enforce the statutory mortgage lien hereby conferred and may, by proper suit, compel the performance of the duties of the officials of the issuing municipalities set forth in this subchapter. (c) If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the waterworks systems on behalf of the municipalities with power to charge and collect rates sufficient to provide for the payment of the principal of and interest on the bonds and for the payment of the operating expenses and to apply the income and revenues in conformity with this subchapter and the ordinances providing for the issuance of the bonds.

Legislative History

Acts 1955, No. 414, § 8; A.S.A. 1947, § 19-4246.