§ 32-4-530 — Remedies of security holders

Colorado § 32-4-530

• Jurisdiction: Colorado
• Title 32: Special
• Art.: Water and Sanitation Districts

Text

(1) Subject to any contractual
limitations binding upon the holders of any issue or series of securities, or trustee
therefor, including but not limited to the restriction of the exercise of any remedy to
a specified proportion, percentage, or number of such holders, and subject to any
prior or superior rights of others, any holder of securities, or trustee therefor, has
the right, for the equal benefit and protection of all holders of securities similarly
situated:

(a) By mandamus or other suit, action, or proceeding at law or in equity to
enforce his rights against the district and its board and any of its officers, agents,
and employees, and to require and compel the district or its board or any such
officers, agents, or employees to perform and carry out their duties, obligations, or
other commitments under this part 5 and their covenants and agreements with the
holder of any security;

(b) By action or suit in equity to require the district and its board to account
as if they were the trustee of an express trust;

(c) By action or suit in equity to have appointed a receiver, which receiver
may enter and take possession of any system, project, or services, revenues from
which are pledged for the payment of the securities, prescribe sufficient fees
derived from the operation thereof, and collect, receive, and apply all revenues or
other moneys pledged for the payment of the securities in the same manner as the
district itself might do in accordance with the obligations of the district;

(d) By action or suit in equity enjoin any acts or things which may be unlawful
or in violation of the rights of the holder of any security, and bring suit thereupon.

(2) If a resolution of a district authorizing or providing for the issuance of the
securities of any series or any proceedings appertaining thereto contains a
provision authorized by section 32-4-529 (1)(r) and shall further provide in
substance that any trustee appointed pursuant to said section shall have the
powers provided by that section, then such trustee, whether or not all of the bonds
of such series have been declared due and payable, shall be entitled as of right to
the appointment of a receiver of the sewage disposal system, and such receiver
may enter upon and take possession of the sewage disposal system and, subject to
any pledge or contract with the holders of such securities, shall take possession of
all moneys and other property derived from or applicable to the acquisition,
operation, maintenance, or improvement of the sewage disposal system and
proceed with such acquisition, operation, maintenance, or improvement which the
district is under any obligation to do, and operate, maintain, equip, and improve the
sewage disposal system, and fix, charge, collect, enforce, and receive the service
charges and all systems revenues thereafter arising, subject to any pledge thereof
or contract with the holders of such securities relating thereto, and perform the
public duties and carry out the contracts and obligations of the district in the same
manner as the district itself might do and under the direction of the court.

(3) Neither the members of the board of directors of a district nor any person
executing securities issued pursuant to this part 5 shall be liable personally on the
securities by reason of the issuance thereof. Securities issued pursuant to this part
5 shall not be in any way a debt or liability of the state or of any municipality or
other public body and shall not create or constitute any indebtedness, liability, or
obligation of the state or of any such municipality or other public body, either legal,
moral, or otherwise, and nothing in this part 5 contained shall be construed to
authorize any district to incur any indebtedness on behalf of, or in any way to
obligate, the state or any municipality or other public body, except the district, and
except as in this part 5 otherwise expressly stated or necessarily implied.

Legislative History

Source: L. 62: p. 214, � 14. C.R.S. 1963: � 89-15-29.