§ 14-167-217 - Receivership. - Arkansas Statutes

14-167-217. Receivership.

(a) (1) The ordinance or indenture referred to in 14-167-207 or 14-167-209 may, but need not, provide that in the event of a default in the payment of the principal of, or interest on, any bonds issued under this subchapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or other properties acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds.

(2) The receiver shall have the power to operate and maintain the land, buildings, or other properties and to charge and collect rates or rents sufficient to provide for the payment of the principal of and interest on the bonds, after providing for the payment of all costs of receivership and operating expenses of the land, buildings, or other properties, and to apply the income and revenues derived from the land, buildings, or other properties in conformity with this subchapter and the ordinance or indenture authorizing or securing the bonds.

(3) When the default has been cured, the receivership shall be ended and the properties returned to the municipality or county.

(b) (1) The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded to the trustee for the holders and registered owners of the bonds in the ordinance or indenture authorizing or securing the bonds.

(2) The relief shall be so granted and administered as to accord full recognition to priority rights of holders and registered owners of the bonds as to the pledge of revenues from, and the mortgage lien on, land, buildings, or other properties as specified in, and fixed by, the ordinance or indenture authorizing or securing successive bond issues.