§ 14-202-115 - Bonds -- Default -- Receiver. - Arkansas Statutes

14-202-115. Bonds -- Default -- Receiver.

(a) In the event of a default in the payment of the principal of, premium, if any, or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of all or any part of the electric system of the municipality.

(b) The receiver shall have the power to operate and maintain the electric system and to charge and collect rates, fees, and charges sufficient to provide for the payment of the principal of, premium, if any, and interest on the bonds, after providing for the payment of any costs of receivership and operating expenses of the electric system, and to apply the revenues derived from the electric system in conformity with this chapter and the ordinance or trust indenture authorizing or securing the bonds.

(c) When the default has been cured, the receivership shall be ended and the electric system returned to the municipality.

(d) The authority of a receiver hereunder to take charge of, operate, or maintain any part of the electric system represented by an undivided interest in a project, shall be subject to the provisions of any and all contracts with others relative to the ownership, operation, and maintenance of the project and the receiver shall assume only the rights and obligations of the municipality therein.

(e) The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the ordinance or trust indenture authorizing or securing the bonds and shall be granted and administered so as to accord full recognition to priority rights of bondholders as the pledge of revenues from, and the mortgage lien on, the electric system as specified in and fixed by the ordinances or trust indentures authorizing or securing successive bond issues.