§ 40-35-16 — Receiver of undertaking - When appointed

If the municipality shall default in the payment of the principal or interest on any of the
revenue bonds after the same shall become due, whether at maturity or upon call for
redemption, and such default shall continue for a period of thirty days, or if the municipality or
the governing body, or officers, agents, or employees of the municipality shall fail or refuse to
comply with the provisions of this chapter, or shall default in any agreement made with the
holders of the bonds, any bondholder or bondholders, or the trustee therefor, may apply to the
district court of the county in which the undertaking is located for the appointment of a receiver

of the undertaking whether or not all of the bonds have been declared due and payable and
whether or not such holder, or such trustee therefor, is seeking or has sought to enforce any
other right or to exercise any other remedy in connection with such bonds. Upon such
application, the court may appoint a receiver of the undertaking. If the application is made by the
holders of twenty-five percent in principal amount of such bonds then outstanding, or by any
trustee for holders of such bonds in such principal amount, the court shall appoint a receiver of
the undertaking.