§ 14-186-311 - Mortgage lien or security interest. - Arkansas Statutes

14-186-311. Mortgage lien or security interest.

(a) (1) (A) The ordinance or indenture securing revenue bonds may impose a foreclosable mortgage lien, security interest, or both, on the port authority facilities, or any portion thereof.

(B) The extent of the mortgage lien on or security interest may be controlled by the ordinance or indenture, including, without limitation, provisions pertaining to:

(i) The release of all, or part, of the facilities subject to the mortgage lien or security interest; and

(ii) The priority of the mortgage lien or security interest in the event of successive issues of bonds.

(2) Subject to the terms, conditions, and restrictions contained in the ordinance or indenture, any holder of any of the bonds or of any coupon attached to them, or a trustee on behalf of the holders, may, either at law or in equity, enforce the mortgage lien or security interest and, by proper suit, may compel the performance of the duties of the officials of the municipality set forth in this subchapter and set forth in the ordinance or indenture.

(b) (1) (A) 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 any port authority facilities upon or in which there is a mortgage lien or security interest securing the bonds in default.

(B) (i) The receiver shall have the power to operate and maintain the facilities in receivership and to charge and collect rates and rents sufficient to provide for the payment of any costs of receivership and operating expenses of the facilities in receivership and to apply the revenues derived from the facilities in receivership in conformity with this subchapter and the ordinance or indenture securing the bonds in default.

(ii) When the default has been cured, the receivership shall be ended and the facilities returned to the municipality.

(2) The relief provided for in this subsection shall be construed to be in addition as supplemental to the remedies that may be provided for in the ordinance or indenture securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from and mortgage lien on and security interest in port authority facilities as specified in, and fixed by, the ordinance or indenture securing successive issues of bonds.