§ 14-169-1007 - Statutory mortgage lien. - Arkansas Statutes

14-169-1007. Statutory mortgage lien.

(a) (1) There is created a statutory mortgage lien upon the property acquired from the proceeds of bonds authorized to be issued under this subchapter which shall exist in favor of the holder of the bonds and each of them and to and in favor of the holder of the coupons attached to the bonds.

(2) The property acquired shall remain subject to this lien until payment in full of the principal and interest of the bonds.

(b) (1) Any holder of bonds issued under provisions of this subchapter may, either at law or in equity, enforce the lien conferred by this section and may, by proper suit, compel the performance of duties of the officials of the issuing county or municipality set forth in this subchapter.

(2) If there is default in the payment of the principal of or interest upon any of the bonds, any court having jurisdiction may, in any proper action, appoint a receiver to administer the properties on behalf of the county or municipality with power to operate any properties or sell them and to apply the income or proceeds in conformity with this subchapter and the provisions of the mortgage or bond contract.