32-861. Same; default on payment; remedies.
32-861
32-861. Same; default on payment; remedies.It may be provided in any resolution authorizing bondsunder K.S.A. 32-857 through 32-864 that, inthe event of a default in the payment of principal of or interest on thebonds or in the performance of any agreement or covenant contained in theresolution, and if such default continues for a prescribedperiod, the holders of a specified percentage of the outstandingbonds, or a trustee acting in their behalf, for the equal andproportionate benefit of the holders of all the bonds and with or withoutpossession thereof may:
(a) By mandamus or other suit, action or proceeding at law or in equity,enforce all rights of the holders of such bonds;
(b) bring suit upon the defaulted bonds and interest thereon;
(c) by action or suit in equity require the secretary to act as if thesecretary were the trustee or an express trust for the bondholders;
(d) by action or suit in equity enjoin any acts which may beunlawful or in violation of the rights of the holders of the bonds;
(e) after such notice to the secretary as the resolution may provide,declare the principal of all of the bonds due and payable; and
(f) apply as a matter of right for the appointment of a receiver who mayenter and take possession of the specific project of the department andoperate and maintain the same and fix, collect and receive fees andcharges for the use thereof and services rendered thereby, sufficient toprovide revenues adequate to carry out all of the provisions of the bondresolution and the costs and disbursements of the proceeding and of thereceiver.
Subject to the provisions of the constitution of the state of Kansas,the district court of the county in which any of the real estate controlledand operated by the department is located shallhave jurisdiction of any suit, action or proceeding provided for by thissection and of all property involved therein.
History: L. 1955, ch. 355, § 21; L. 1963, ch. 409, § 10; L.1983, ch. 49, § 95;L. 1989, ch. 118, § 28; July 1.