43-1916. BONDS — ISSUANCE — TERMS AND CONDITIONS. Whenever revenue bonds are authorized to be issued, the district directors shall by resolution provide for the issuance thereof. The resolution authorizing the issuance of revenue bonds, for the purpose authorized, shall contain covenants as to:

(a) The purpose or purposes to which the proceeds of the sale of the bonds may be applied and the use and disposition thereof;

(b) The use and disposition of the revenue of the works for which the bonds are to be issued, including the creation and maintenance of reserves;

(c) The issuance of other or additional bonds payable from the revenue of the works;

(d) The operation and maintenance of works;

(e) The insurance to be carried thereon, the use and disposition of insurance moneys;

(f) Books of account and inspection and audit thereof; and

(g) The terms and conditions upon which the holders thereof or any trustee therefor shall be entitled to the appointment of a receiver which receiver may enter and take possession of works, operate and maintain the same, prescribe rates, fees, tolls or charges and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the district itself might do. The provisions of this section and of any resolution shall be a contract with the holder of the bonds and the duties of the district and its commissioners under this section and under the resolution, shall be enforceable by the holder by mandamus or other appropriate suit, action or proceedings at law or in equity.

History:

[43-1916, added 1988, ch. 299, sec. 11, p. 950.]