§ 64-4-111 — Bondholders' rights in event of default

(a) The county legislative body or the board of commissioners authorizing and issuing bonds has the power, by resolution, to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees, for such holders, the rights, in the event of an "event of default," as defined in such resolution or as may be defined in any agreement with the holder or holders of such bonds, or trustee or trustees thereof: (1) By suit, action or proceedings in any court of competent jurisdiction, to obtain the appointment of a receiver of the authority's facilities, or any part or parts thereof. If such receiver be appointed, the receiver may enter and take possession of such facilities or part or parts thereof, and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom, in the same manner as the authority itself might do, and shall deposit such moneys in a separate account or accounts, and apply the same in accordance with the obligations of the bonds issued under this chapter, as the court may direct; and (2) By suit, action or proceedings in any court of competent jurisdiction, to require the county legislative body authorizing and issuing the bonds, or the board, to act as if such body or board was the trustee of an express trust. (b) Any such resolution shall constitute a contract between the port authority or county, or both, and the holders of bonds of such issue.

Legislative History

Acts 1980, ch. 900, § 11; T.C.A., § 66-4-111.