§ 11-7-101 Remedies conferred on bondholders by terms of bond.

SD Codified L § 11-7-101 (2019) (N/A)

Copy with citation

Copy as parenthetical citation

11-7-101. Remedies conferred on bondholders by terms of bond. A commission shall have power by its resolution, trust indenture, mortgage, lease, or other contract to confer upon any obligee holding or representing a specified amount in bonds, the right (in addition to all rights that may otherwise be conferred), upon the happening of an event of default as defined in such resolution or instrument, by suit, action, or proceeding in any court of competent jurisdiction:

(1) To cause possession of any project or any part thereof to be surrendered to any such obligee;

(2) To obtain the appointment of a receiver of any project of said commission or any part thereof and of the rents and profits therefrom. If such receiver be appointed, he may enter and take possession of such project or any part thereof and operate and maintain same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom, and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of said commission as the court shall direct;

(3) To require said commission and the commissioners, officers, agents, and employees thereof to account as if it and they were the trustees of an express trust.Source: SL 1950 (SS), ch 13, § 25; SDC Supp 1960, § 45.3625.

Previous Section

§ 11-7-100 Recital in bond conclusive as to purpose.

Next Section

§ 11-7-102 Investment in bonds authorized for public funds, financial institutions, trusts, and fiduciaries.