7-34-110 - Covenants in resolutions Bondholders' remedies.
7-34-110. Covenants in resolutions Bondholders' remedies.
(a) Any resolution authorizing the issuance of bonds under this chapter may contain covenants as to:
(1) The purpose or purposes to which the proceeds of sale of bonds may be applied and the use and disposition of the proceeds;
(2) The use and disposition of the revenue of the public works for which the bonds are to be issued, including the creation and maintenance of reserves;
(3) The transfer from the general funds of the municipality to the account or accounts of the public works an amount equal to the cost of furnishing such municipality or any of its departments, boards or agencies with the services, facilities and commodities of the public works;
(4) The issuance of other or additional bonds payable from the revenue of the public works;
(5) The operation and maintenance of such public works;
(6) The insurance to be carried on the bonds and the use and disposition of insurance moneys;
(7) Books of accounts and the inspection and audit of the books and as to accounting methods; and
(8) The terms and conditions upon which the holders of the bonds or any proportion of them or any trustees for the holders shall be entitled to the appointment of a receiver by the chancery court, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of the public works, operate and maintain the public works, prescribe rates, fees or charges, and collect, receive and apply all revenue thereafter arising from the public works in the same manner as the municipality itself might do.
(b) The provisions of this chapter and any such resolution or resolutions shall be a contract with the holder or holders of the bonds, and the duties of the municipality and of its governing body and officers under this chapter and any such resolution or resolutions shall be enforceable by any bondholder by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction.
[Acts 1935 (E.S.), ch. 33, § 6; C. Supp. 1950, § 4406.47 (Williams, § 4406.39); T.C.A. (orig. ed.), § 6-1310.]