Section 12-705 - Rights of obligees. - Maryland Statutes

§ 12-705. Rights of obligees.
 

(a)  In general.- In addition to all other rights that a contract may confer on an obligee of an authority, subject only to binding contractual restrictions, the obligee may: 

(1) by a writ of mandamus or a proceeding at law or in equity, compel the authority and the authority's commissioners, officers, agents, or employees to perform each term, provision, and covenant contained in a contract of the authority with or for the benefit of the obligee; 

(2) require the carrying out of any covenant or agreement of the authority and the fulfillment of all duties imposed on the authority by this Division II; and 

(3) by a proceeding in equity, enjoin any unlawful act or thing or the violation of any right of the obligee. 

(b)  Rights on default - In general.-  

(1) By resolution, trust indenture, mortgage, lease, or other contract, an authority may confer the right to take action under subsection (c) of this section if a default, as defined in the resolution or instrument, occurs. 

(2) The right may be conferred on an obligee that: 

(i) holds or represents a specified amount in bonds or notes; or 

(ii) holds a mortgage, deed of trust, security instrument, or lease. 

(c)  Same - Enumerated.-  

(1) An obligee that has the right under subsection (b) of this section to take action under this subsection may, by a proceeding in a court of competent jurisdiction: 

(i) have possession of all or part of a housing project surrendered to any such obligee; 

(ii) require the authority and its commissioners to account as if the authority and its commissioners were trustees of an express trust; and 

(iii) have a receiver appointed for all or part of a housing project and its rents and profits. 

(2) If a receiver is appointed, the receiver may: 

(i) enter and take possession of the housing project or any part of the housing project; 

(ii) operate and maintain it; and 

(iii) collect and receive all fees, rents, revenues, or other charges thereafter arising from it. 

(3) The receiver shall keep the money in a separate account or accounts and apply the money in accordance with the obligations of the authority as the court directs. 
 

[An. Code 1957, art. 44A, § 1-504; 2006, ch. 63, § 2.]