§ 13-20-606 — Remedies conferrable upon authority by mortgage or trust indenture

An authority has the power by its trust indenture, mortgage, lease or other contract to confer upon any obligee holding or representing a specified amount in bonds, leases or other obligations, the right upon the happening of an "event of default" as defined in such instrument, by suit, action or proceeding in any court of competent jurisdiction, to: (1) Obtain the appointment of a receiver of any housing project of the authority or any part or parts thereof. If a receiver is appointed, the receiver may enter and take possession of such housing project or any part or parts thereof and operate and maintain same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom in the same manner as the authority itself might do, and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct; and (2) Require the authority and the commissioners thereof to account as if it and they were the trustees of an express trust.

Legislative History

Acts 1935 (Ex. Sess.), ch. 20, § 19; C. Supp. 1950, § 3647.18 (Williams, § 3647.19); T.C.A. (orig. ed.), § 13-1106.