§ 49-39-10 — Default on bonds--Court appointment of receiver--Authority of receiver to operate district--Discharge of receiver and return of district to control.

The board of directors of any consumers power district issuing revenue debentures, notes, warrants, or other evidences of indebtedness, under this chapter, is hereby also authorized and empowered to agree and contract with the purchasers or holders thereof that in the event of default in the payment of interest on, or principal of, any such revenue debentures, notes, warrants, or other evidences of indebtedness, issued, or in the event of default in the performance of any duty or obligation under any agreement by such district, the holder or holders of such revenue debentures, notes, warrants, or other evidences of indebtedness then outstanding shall be entitled as a matter of right, upon application to a court of competent jurisdiction, to have appointed a receiver of the business and property of the district including all tolls, rents, revenues, issues, income, receipts, profits, benefits and additions derived, received or had thereof or therefrom, with power to operate and maintain such business and property, collect, receive and apply all revenue, income and receipts arising therefrom, and prescribe rates, tolls and charges, in the same way and manner as the district might do. Whenever all defaults in the payment of principal of, and interest on, such revenue debentures, notes, warrants, or other evidences of indebtedness, and any other defaults under any agreement made by the district, shall have been made good, such receiver shall be discharged by the court and shall thereupon surrender control of the business and possession of the property in his hands to the district.

Legislative History

SL 1950 (SS), ch 17, § 63; SDC Supp 1960, § 52.1762.