(1) Any resolution or trust
indenture authorizing the issuance of securities or any other instrument
appertaining thereto may contain covenants and other provisions, notwithstanding
such covenants and provisions may limit the exercise of powers conferred by this
part 5, in order to secure the payment of such securities, in agreement with the
holders and owners of such securities, as to any one or more of the following:
(a) The service charges, and any general taxes to be fixed, charged, or
levied, and the collection, use, and disposition thereof, including but not limited to
the foreclosure of liens for delinquencies, the discontinuance of services, facilities,
or commodities, or use of any sewage disposal system or project, prohibition
against free service, the collection of penalties and collection costs, including
disconnection and reconnection fees, and the use and disposition of any revenues
of the district derived, or to be derived, from any source;
(b) The acquisition, improvement, or equipment of all or any part of the
sewage disposal system or of any project;
(c) The creation and maintenance of reserves or sinking funds to secure the
payment of the principal of and interest on any securities or of operation and
maintenance expenses of any sewage disposal system or any project, or part
thereof, and the source, custody, security, use, and disposition of any such reserves
or funds, including but not limited to the powers and duties of any trustee with
regard thereto;
(d) A fair and reasonable payment by the district from its general fund or
other available moneys to the account of a designated project for any facilities or
commodities furnished or services rendered thereby to the district or any of its
departments, boards, or agencies;
(e) The purpose to which the proceeds of the sale of securities may be
applied, and the custody, security, use, expenditure, application, and disposition
thereof;
(f) The payment of the principal of and interest on any securities, and the
sources and methods thereof, the rank or priority of any securities as to any lien or
security for payment, or the acceleration of any maturity of any securities, or the
issuance of other or additional securities payable from or constituting a charge
against or lien upon any revenues pledged for the payment of securities and the
creation of future liens and encumbrances there against, and limitations thereon;
(g) The use, regulation, inspection, management, operation, maintenance, or
disposition, or any limitation or regulation of the use, of all or any part of the
sewage disposal system or any facilities or project;
(h) The determination or definition of revenues from the sewage disposal
system or any project or of the expenses of operation and maintenance of such
system or project, the use and disposition of such revenues and the manner of and
limitations upon paying such expenses;
(i) The insurance to be carried by the district and use and disposition of
insurance moneys, the acquisition of completion or surety bonds appertaining to
any project or funds, or both, and the use and disposition of any proceeds of such
bonds;
(j) Books of account, the inspection and audit thereof, and other records
appertaining to a sewage disposal system, sewer system, or any project authorized
in this part 5;
(k) The assumption or payment or discharge of any indebtedness, other
obligation, lien, or other claim relating to any part of a sewage disposal system or of
any project or any securities having or which may have a lien on any part of any
revenues of the district;
(l) Limitations on the powers of the district to acquire or operate, or permit
the acquisition or operation of, any plants, structures, facilities, or properties which
may compete or tend to compete with the sewage disposal system or any project;
(m) The vesting in a corporate or other trustee such property, rights, powers,
and duties in trust as the district may determine, which may include any of the
rights, powers, and duties of the trustee appointed by the holders of securities, and
limiting or abrogating the right of such holders to appoint a trustee, or limiting the
rights, duties, and powers of such trustee;
(n) The payment of costs or expenses incident to the enforcement of the
securities or of the provisions of the resolution or of any covenant or contract with
the holders of the securities;
(o) The procedure, if any, by which the terms of any covenant or contract
with, or duty to, the holders of securities may be amended or abrogated, the amount
of securities the holders of which must consent thereto, and the manner in which
such consent may be given or evidenced;
(p) Events of default, rights, and liabilities arising therefrom, and the rights,
liabilities, powers, and duties arising upon the breach by the district of any
covenants, conditions, or obligations;
(q) The terms and conditions upon which the holders of the securities, or any
portion, percentage, or amount of them, may enforce any covenants or provisions
made under this part 5, or duties imposed thereby;
(r) The terms and conditions upon which the holders of the securities, or of a
specified portion, percentage, or amount thereof, or any trustee therefor, shall be
entitled to the appointment of a receiver, which receiver may enter and take
possession of the sewage disposal system or any project or service, operate and
maintain the same, prescribe fees, rates, and charges, and collect, receive, and
apply all revenues thereafter arising therefrom in the same manner as the district
itself might do;
(s) A procedure by which the terms of any resolution authorizing securities,
or any other contract with any holders of securities, including but not limited to an
indenture of trust or similar instrument, may be amended or abrogated, and as to
the amount of securities the holders of which must consent thereto, and the manner
in which such consent may be given;
(t) The terms and conditions upon which any or all of the securities become
or may be declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived;
(u) All such acts and things as may be necessary or convenient or desirable
in order to secure the district's securities, or, in the discretion of the board, tend to
make the securities more marketable, notwithstanding that such covenant, act, or
thing may not be enumerated in this part 5, it being the intention hereof to give a
district power to do all things in the issuance of securities and for their security,
except as specifically limited in this part 5.