Bonds — Default — Receiver

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  1. (a) In the event of a default in the payment of the principal of or interest on any bonds issued under this chapter, any court having jurisdiction may appoint a receiver to take charge of the land, buildings, or facilities upon which there is a mortgage lien securing the bonds.

  2. (b) The receiver shall have the power to operate and maintain the land, buildings, or facilities and to charge and collect rates or rents with reference to them. These rents shall be sufficient to provide for the payment of the principal of and interest on bonds, after providing for the payment of any costs of receivership and operating expenses of the land, buildings, or facilities and to apply the income and revenues derived from them in conformity with this chapter and the resolution or indenture authorizing or securing the bonds.

  3. (c) When the default has been cured, the receivership shall be ended and the properties returned to the authority issuing the bonds.

  4. (d) The relief afforded by this section shall be construed to be in addition and supplemental to the remedies that may be afforded the trustee for the bondholders and the bondholders in the resolution or indenture authorizing or securing the bonds and shall be so granted and administered as to accord full recognition to priority rights of bondholders as to the pledge of revenues from, the mortgage lien on, the land, buildings, or facilities as specified in and fixed by the resolution or indenture authorizing or securing successive bond issues.


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