91.730. Default--rights of bondholders--procedure of circuit court--receiver.

MISSOURI STATUTES AND CODES

91.730. Default--rights of bondholders--procedure of circuit court--receiver.

Default--rights of bondholders--procedure of circuit court--receiver.

91.730. 1. In the event that the municipality shall defaultin the payment of the principal or interest on any of the bondsafter the same shall become due, whether at maturity or upon callfor redemption, and such default shall continue for a period ofthirty days, or in the event that the municipality or thegoverning body or officers, agents or employees thereof shallfail or refuse to comply with the provisions of sections 91.620to 91.770 or shall default in any agreement made with the holdersof the bonds, any holders of bonds, or trustee therefor, shallhave the right to apply in an appropriate judicial proceeding tothe circuit court, or if the undertaking is situate in two ormore different counties, then the circuit court of the county inwhich are situate more of the lands and other property of themunicipality than in any other county, for the appointment of areceiver of the enterprise, whether or not all bonds have beendeclared due and payable and whether or not such holder, ortrustee therefor, is seeking or has sought to enforce any otherright, or exercise any remedy in connection with such bonds.Upon such application the circuit court may appoint, and if theapplication is made by the holders of twenty-five percent inprincipal amount of such bonds then outstanding, or any trusteefor holders of such bonds in such principal amount, shall appointa receiver of the enterprise.

2. The receiver so appointed shall forthwith, directly or byhis agents and attorneys, enter into and upon and take possessionof the enterprise and each and every part thereof and may excludethe municipality, its governing body, officers, agents, andemployees and all persons claiming under them wholly therefromand shall have, hold, use, operate, manage, and control the sameand each and every part thereof, and, in the name of themunicipality or otherwise, as the receiver may deem best, andshall exercise all the rights and powers of the municipality withrespect to the enterprise as the municipality itself might do.Such receiver shall maintain, restore, insure and keep insured,the enterprise, and from time to time shall make all suchnecessary or proper repairs as to such receiver may seemexpedient and shall establish, levy, maintain and collect suchfees, tolls, rentals, and other charges in connection with theenterprise as such receiver may deem necessary or proper andreasonable, and shall collect and receive all revenues and shalldeposit the same in a separate account and apply such revenues socollected and received in such manner as the court shall direct.

3. Whenever all that is due upon the bonds, and interestthereon, and upon any other notes, bonds or other obligations,and interest thereon, having a charge, lien, or encumbrance onthe revenues of the enterprise and under any of the terms of anycovenants or agreements with bondholders shall have been paid ordeposited as provided therein, and all defaults shall have beencured and made good, the court may in its discretion, and aftersuch notice and hearing as it deems reasonable and proper, directthe receiver to surrender possession of the enterprise to themunicipality, the same right of the holders of the bonds tosecure the appointment of a receiver to exist upon any subsequentdefault as herein provided.

4. Such receiver shall in the performance of the powersherein conferred upon him, act under the direction andsupervision of the court making such appointment and shall at alltimes be subject to the orders and decrees of such court and maybe removed thereby. Nothing herein contained shall limit orrestrict the jurisdiction of such court to enter such other andfurther orders and decrees as such court may deem necessary orappropriate for the exercise by the receiver of any functionsspecifically set forth herein.