§ 13-1104 — Bonds; security; agreements; default; payment; foreclosure

(1) The principal of and interest on
any bonds issued under the authority of sections 13-1101 to 13-1110 (a) shall
be secured by a pledge of the revenue out of which such bonds shall be made
payable, (b) may be secured by a mortgage covering all or any part of the
project, (c)
may be secured by a pledge of the lease of such project or by any related
financing agreement, or (d) may be secured by such other security device as
may be deemed most advantageous by the issuing authority and other parties to the transaction.
(2) The proceedings under
which the bonds are authorized to be issued under sections 13-1101 to 13-1110 and any mortgage given to
secure the same may contain any agreements and provisions customarily contained
in instruments securing bonds, including, without limiting the generality
of the foregoing, provisions respecting (a) the fixing and collection of rents
for any project covered by such proceedings or mortgage, (b) the terms to
be incorporated in the lease or financing of such project, (c) the maintenance
and insurance of such project, (d) the creation and maintenance of special
funds from the revenue of such project, and (e) the rights and remedies available
in the event of a default to the bondholders or to the trustee under a mortgage,
all as the governing body shall deem advisable and as shall not be in conflict
with sections 13-1101 to 13-1110 . In making any such agreements or provisions, a municipality or county shall not have the
power to obligate itself, except
with respect to the project and the application of the revenue therefrom,
and shall not have the power to incur a pecuniary liability or a charge upon
its general credit or against its taxing powers.
(3) The proceedings authorizing any bonds under sections 13-1101 to 13-1110
and any mortgage securing such bonds may provide that, in the event of a default
in the payment of the principal of or the interest on such bonds or in the
performance of any agreement contained in such proceedings or mortgage, such
payment and performance may be enforced by mandamus or by the appointment
of a receiver in equity with power to charge and collect rents and to apply
the revenue from the project in accordance with such proceedings or the provisions
of such mortgage.
(4) Any mortgage made
under sections 13-1101 to 13-1110 to
secure bonds issued thereunder may
also provide that, in the event of a default in the payment thereof or the
violation of any agreement contained in the mortgage, the mortgage may be
foreclosed and sold under proceedings in equity or in any other manner now
or hereafter permitted by law. Such mortgage may also provide that any trustee
under such mortgage or the holder of any of the bonds secured thereby may
become the purchaser at any foreclosure sale if it is the highest bidder therefor. No breach
of any such agreement shall impose any pecuniary liability upon a municipality
or county or any charge upon their general credit or against their taxing
powers.

Legislative History

Source: Laws 1961, c. 54, § 4, p. 203; Laws 1983, LB 451, § 3; R.S.1943, (1983), § 18-1617; Laws 2011, LB159, § 3.