§ 39:506 — Rights of bondholders

§506. Rights of bondholders
A. Any owner of bonds issued under this Part may by suit, action, mandamus, or
other proceedings, protect and enforce the statutory lien provided by this Part as well as the
security provided for such bonds or the repayment thereof by the proceedings authorizing
such bonds, and may by suit, action, mandamus, or other proceedings enforce and compel
performance of all of the duties required to be performed by the governing authority of the
issuer of such bonds or as may be provided for in the proceedings authorizing the issuance
of such bonds.
B. No member of the governing authority or any officer or employee of the
governmental entity that has issued bonds, or any person executing such bonds shall be
personally liable on such bonds.
C. The governing authority may in the proceedings authorizing bonds provide for the
respective priorities of its separate series of bonds, and may provide for the issuance of
additional parity bonds in the future pursuant to such procedure or restrictions as may be
specified in such proceedings, or as may be agreed to by the owners of any series of bonds.
In the absence of such provision, or agreement of the owners, if more than one series of
bonds, other than general obligation bonds, shall be issued hereunder payable from the same
taxes or other revenues, then the priority of lien on such revenues shall depend on the time
of the delivery of such series of bonds, each series enjoying a lien prior and superior to that
enjoyed by any series of bonds subsequently delivered, except that as to any series of bonds
which may be authorized as a unit but delivered from time to time in tranches or separate
series, the governing authority may in the proceedings authorizing the issuance of such bonds
provide that all of the bonds of such series or issue shall be coequal as to lien regardless of
the time of delivery.
D. Proceedings authorizing the issuance of bonds may contain such covenants with
the future owner or owners of the bonds as to the taxes or revenues that secure such bonds,
the disposition of such taxes or revenues, the issuance of future bonds, and such other
pertinent matters as the governing authority may desire to assure the marketability of such
bonds, provided such covenants are not inconsistent with the provisions of this Part.
E. Any proceedings authorizing the issuance of bonds may contain such provisions
to assure the enforcement, collection, and proper application of the taxes or revenues pledged
as security for the bonds as the governing authority may think proper, where not inconsistent
with the provisions of this Part. When any bonds shall have been issued pursuant to this
Part, the proceedings of the governing authority relating to the pledged taxes or revenues, and
the obligation of the governing authority to continue to collect and allocate such pledged
taxes or revenues and to apply such pledged taxes or revenues in accordance with the
provisions of said proceedings, shall be irrevocable until such bonds have been paid in full
as to principal and interest, and shall not be subject to amendment in any manner which
would impair the rights of the owners from time to time of such bonds or which would in any
way jeopardize the prompt payment of principal thereof or interest thereon.

Legislative History

Acts 2018, No. 569, §1, eff. July 1, 2018.