§ 14-269-110 - Bonds -- Default in payment. - Arkansas Statutes

14-269-110. Bonds -- Default in payment.

(a) In the event of a default in the payment of the principal of, or interest on, any revenue bonds issued under this subchapter, 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 revenue bonds issued under this subchapter, upon which land, buildings, or facilities, or any part thereof, there is a mortgage lien securing the revenue 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 subchapter and the ordinance 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.

(d) 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 indenture authorizing or 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 the mortgage lien on, the land, buildings, or facilities as specified in, and fixed by, the ordinance or indenture authorizing or securing successive bond issues.