7-83-311 - Remedies of bondholders. - Tennessee Statutes

7-83-311. Remedies of bondholders.

In addition to all other remedies, any holder of a bond of any district incorporated under this chapter, including a trustee for bondholders, shall have the right, subject to any contractual limitations binding upon such holder or trustee, and subject to the prior or superior rights of others:

     (1)  By mandamus or other suit, action or proceedings, at law or in equity, to enforce such holder's rights against such district and the board of such district, including the right to require such district and such board to fix and collect rates and charges adequate to carry out any agreement as to, or pledge of, the revenues produced by such rates or charges, and to require such district and such board to carry out any other covenants and agreements with such bondholder and to perform the district's and the board's under this chapter;

     (2)  By action or suit in equity to enjoin any acts or things that may be unlawful or in violation of the right of such bondholder;

     (3)  By action or suit in equity to require such authority to act as if it were the trustee of an express trust for such bondholders; and

     (4)  By suit, action or proceeding in court exercising equitable jurisdiction to obtain the appointment of a receiver of the enterprise in which the district is engaged or any part or parts of the enterprise, who may enter and take possession of such utility or any part or parts of the utility, including all property, land, property rights, easements and other adjuncts of the utility, and such receiver may operate and maintain the utility and collect and receive all revenues thereafter arising from the utility in the same manner as such district might do, and shall deposit all such moneys in a separate account or accounts and apply the moneys in accordance with the obligations of such district as the court shall direct.

[Acts 1935 (E.S.), ch. 4, § 12; C. Supp. 1950, § 3708.58 (Williams, § 3708.61); T.C.A. (orig. ed.), § 6-2723.]