§ 14-267-111 - Bonds -- Default in payment. - Arkansas Statutes

14-267-111. Bonds -- Default in payment.

(a) In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities acquired, constructed, reconstructed, extended, equipped, or improved, in whole or in part, with the proceeds of bonds issued under this chapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the bonds with reference to which there is a default in the payment of principal or interest.

(b) The receiver shall have the power to operate and maintain the land, buildings, or facilities, 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 facilities and to apply the income and revenues derived from the land, buildings, or facilities in conformity with this chapter and the ordinance, order, or indenture authorizing or securing the bonds.

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

(d) 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 and the holders and registered owners of the bonds in the ordinance or indenture authorizing or securing the bonds and 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, the land, buildings, or facilities as specified in, and fixed by, the ordinance, order, or indenture authorizing or securing successive bond issues.