77-5-419 - Additional rights and remedies of bondholders may be conferred by resolution.
§ 77-5-419. Additional rights and remedies of bondholders may be conferred by resolution.
Any municipality shall have power by resolution of its governing body to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right 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 the trustee or trustees therefor:
(a) By suit, action or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the electric plant or any part or parts thereof. If such receiver be appointed he may enter and take possession of such electric plant or any 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 municipality 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 municipality as the court shall direct.
(b) By suit, action or proceeding in any court of competent jurisdiction to require the governing body of the municipality and/or the board to account as if it were the trustee of an express trust.
Any such resolution shall constitute a contract between the municipality and the holders of bonds of such issue.
Sources: Codes, 1942, § 5535; Laws, 1936, ch. 185.