§ 17340 — Additional remedies conferrable by authority

Pennsylvania § 17340

• Jurisdiction: Pennsylvania
• Title 16: COUNTIES
• Part: PART IV
• Ch. 173: THIRD CLASS COUNTY CONVENTION CENTER AUTHORITIES
• Subch.: THIRD CLASS COUNTY CONVENTION CENTER AUTHORITIES,

Text

(a) General rule.--The authority shall have the power by resolution, trust, indenture or mortgage to confer upon any obligees holding or representing a specified percentage of bonds the right, in addition to all rights that may otherwise be conferred, upon the happening of an event of default as defined in the resolution or instrument, by suit, action or proceeding in a court of competent jurisdiction to:

(1) obtain the appointment of a receiver of any real property or leasehold interest of the authority and of the rents and profits from the property. If a receiver is appointed, the receiver may enter and take possession of the real property or any leasehold interest, operate the real property or leasehold interest and collect and receive all revenues or other income arising from the operation and shall keep the money in a separate account and apply the same in accordance with the obligations of the authority as the court shall direct; or

(2) require the authority and its members to account as if the authority and authority members were the trustees of an express trust.

(b) Prohibition.--For the purpose of operating and maintaining facilities of the authority, nothing in this subchapter shall authorize a receiver appointed under this subchapter to sell, assign, mortgage or otherwise dispose of authority assets. It is the intention of this subchapter to limit the powers of the receiver to the operation and maintenance of the facilities of the authority as the court directs, and the following apply:

(1) Receivers may not sell, assign, mortgage or otherwise dispose of any assets of the authority.

(2) Bondholders, trustees and other obligees do not have the right in any suit, action or proceeding, at law or in equity, to compel a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority.

(3) A court may not direct a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority.