Section 46A-1-37 - Covenant against alienation or encumbrance of projects while bondsoutstanding. - South Dakota Statutes

46A-1-37. Covenant against alienation or encumbrance of projects while bonds outstanding. The district shall have the power to covenant that so long as any of the bonds issued under this chapter shall remain outstanding and unpaid, it will not, except upon such terms and conditions as may be determined, voluntarily create or cause to be created any debt, lien, mortgage, pledge, assignment, encumbrance, or other charge having priority to the lien of the bonds issued under this chapter upon any of the income and revenues derived from all revenues pledged pursuant to § 46A-1-33, or convey or otherwise alienate any project or the real estate upon which such project shall be located, except at a price sufficient to pay all the bonds issued for such project then outstanding and interest accrued thereon, and then only in accordance with any agreements with the holder or holders of such bonds.

Source: SL 1972, ch 241, § 36; SDCL Supp, § 46-17A-35.