77-5-415 - Securing payment of bonds.
§ 77-5-415. Securing payment of bonds.
In order to secure the payment of any of the bonds issued pursuant to this article, and interest thereon, or in connection with such bonds, the governing body of any municipality shall have power as to such bonds, to the extent not inconsistent with the mandatory provisions of this article or the provisions of the election resolution:
(a) To pledge the full faith and credit and unlimited taxing power of the municipality to the punctual payment of the principal of and interest on such bonds.
(b) To pledge all or any part of the revenues derived from electric service.
(c) To provide for the terms, form, registration, exchange, execution and authentication of such bonds.
(d) To provide for the replacement of lost, destroyed, or mutilated bonds.
(e) To covenant as to the use and disposition of the proceeds for the sale of such bonds.
(f) To covenant as to the rates and charges of the electric plant.
(g) To redeem such bonds, and to covenant for their redemption and to provide the terms and conditions thereof.
(h) To covenant and prescribe as to what happenings or occurrences shall constitute "events of default" and the terms and conditions upon which any or all of such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.
(i) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation.
(j) To vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued under the provisions of this article, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute "events of default" and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.
(k) To make covenants other than, and in addition to, the covenants herein authorized, of like or different character, necessary or advisable to effectuate the purpose of this article.
(l) To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties.
Sources: Codes, 1942, § 5533; Laws, 1936, ch. 185.