§ 440 - Same-right of city - Vermont Statutes

§ 3-440. Same-right of city

(a) The city shall have power by resolution of its board of light commissioners to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right in the event of an "event of default" as defined in such resolution or as may be defined in any agreement with the holder or holders of such bonds or the trustee or trustees therefor:

(1) By suit, action or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the electric plant or any part or parts thereof. If such receiver be appointed he may enter and take possession of such electric plant or any part or parts thereof and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as the city itself might do and shall deposit such moneys in a separate account or accounts and apply the same in accordance with the obligations of the city as the court shall direct.

(2) By suit, action or proceeding in any court of competent jurisdiction to require the city to account as if it were the trustee of an express trust.

(b) Any such resolution shall constitute a contract between the city and the holders of bonds of such issue.