§ 27-76-608 — Lien in favor of bondholders

(a) The payment of the principal of bonds issued under this chapter and the interest thereon may be secured by a lien on and security interest in the regional mobility authority's surface transportation system or any specified portion of the regional mobility authority's surface transportation system. (b) It shall not be necessary to the perfection of the lien and pledge for such purposes that the trustee in connection with the bond issue or the holders of the bonds take possession of the collateral security. (c) Subject to whatever restrictions may be contained in the resolution or indenture governing the bonds, any holder of bonds issued under the provisions of this chapter may enforce either at law or in equity the lien and may compel by proper suit the performance of the duties of the officers of the board of directors of the issuing regional mobility authority set forth in this chapter. (d) (1) In the event there is default in the payment of the principal or interest on any of the bonds, a court of competent jurisdiction may appoint a receiver to: (A) Administer the regional mobility authority's surface transportation system pledged to the payment of the bonds; or (B) Administer the specified portion of the regional mobility authority's surface transportation system pledged to the payment of the bonds. (2) The receiver shall perform the duties specified in subdivision (d)(1) of this section on behalf of the public body. (3) The receiver shall have the power to: (A) Charge and collect rates sufficient to provide for: (i) The payment of the bonds; (ii) The interest on the bonds; and (iii) The payment of any operating expenses of the surface transportation system pledged to the payment of the bonds or the portion of the surface transportation system pledged to the payment of the bonds; and (B) Apply the income and revenues of the surface transportation system pledged to the payment of the bonds or the portion of the surface transportation system pledged to the payment of the bonds in conformity with this chapter and the resolution or indenture providing for the issuance of the bonds.

Legislative History

Acts 2007, No. 389, § 1.