Covenants in security proceedings.

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(1) Any resolution or trust indenture authorizing the issuance of securities or any other instrument appertaining thereto may contain covenants and other provisions, notwithstanding such covenants and provisions may limit the exercise of powers conferred by this part 5, in order to secure the payment of such securities, in agreement with the holders and owners of such securities, as to any one or more of the following:

  1. The service charges, and any general taxes to be fixed, charged, or levied, and thecollection, use, and disposition thereof, including but not limited to the foreclosure of liens for delinquencies, the discontinuance of services, facilities, or commodities, or use of any sewage disposal system or project, prohibition against free service, the collection of penalties and collection costs, including disconnection and reconnection fees, and the use and disposition of any revenues of the district derived, or to be derived, from any source;

  2. The acquisition, improvement, or equipment of all or any part of the sewage disposalsystem or of any project;

  3. The creation and maintenance of reserves or sinking funds to secure the payment ofthe principal of and interest on any securities or of operation and maintenance expenses of any sewage disposal system or any project, or part thereof, and the source, custody, security, use, and disposition of any such reserves or funds, including but not limited to the powers and duties of any trustee with regard thereto;

  4. A fair and reasonable payment by the district from its general fund or other availablemoneys to the account of a designated project for any facilities or commodities furnished or services rendered thereby to the district or any of its departments, boards, or agencies;

  5. The purpose to which the proceeds of the sale of securities may be applied, and thecustody, security, use, expenditure, application, and disposition thereof;

  6. The payment of the principal of and interest on any securities, and the sources andmethods thereof, the rank or priority of any securities as to any lien or security for payment, or the acceleration of any maturity of any securities, or the issuance of other or additional securities payable from or constituting a charge against or lien upon any revenues pledged for the payment of securities and the creation of future liens and encumbrances there against, and limitations thereon;

  7. The use, regulation, inspection, management, operation, maintenance, or disposition,or any limitation or regulation of the use, of all or any part of the sewage disposal system or any facilities or project;

  8. The determination or definition of revenues from the sewage disposal system or anyproject or of the expenses of operation and maintenance of such system or project, the use and disposition of such revenues and the manner of and limitations upon paying such expenses;

  9. The insurance to be carried by the district and use and disposition of insurance moneys, the acquisition of completion or surety bonds appertaining to any project or funds, or both, and the use and disposition of any proceeds of such bonds;

  10. Books of account, the inspection and audit thereof, and other records appertaining toa sewage disposal system, sewer system, or any project authorized in this part 5;

  11. The assumption or payment or discharge of any indebtedness, other obligation, lien,or other claim relating to any part of a sewage disposal system or of any project or any securities having or which may have a lien on any part of any revenues of the district;

  12. Limitations on the powers of the district to acquire or operate, or permit the acquisition or operation of, any plants, structures, facilities, or properties which may compete or tend to compete with the sewage disposal system or any project;

  13. The vesting in a corporate or other trustee such property, rights, powers, and dutiesin trust as the district may determine, which may include any of the rights, powers, and duties of the trustee appointed by the holders of securities, and limiting or abrogating the right of such holders to appoint a trustee, or limiting the rights, duties, and powers of such trustee;

  14. The payment of costs or expenses incident to the enforcement of the securities or ofthe provisions of the resolution or of any covenant or contract with the holders of the securities;

  15. The procedure, if any, by which the terms of any covenant or contract with, or dutyto, the holders of securities may be amended or abrogated, the amount of securities the holders of which must consent thereto, and the manner in which such consent may be given or evidenced;

  16. Events of default, rights, and liabilities arising therefrom, and the rights, liabilities,powers, and duties arising upon the breach by the district of any covenants, conditions, or obligations;

  17. The terms and conditions upon which the holders of the securities, or any portion,percentage, or amount of them, may enforce any covenants or provisions made under this part 5, or duties imposed thereby;

  18. The terms and conditions upon which the holders of the securities, or of a specifiedportion, percentage, or amount thereof, or any trustee therefor, shall be entitled to the appointment of a receiver, which receiver may enter and take possession of the sewage disposal system or any project or service, operate and maintain the same, prescribe fees, rates, and charges, and collect, receive, and apply all revenues thereafter arising therefrom in the same manner as the district itself might do;

  19. A procedure by which the terms of any resolution authorizing securities, or any othercontract with any holders of securities, including but not limited to an indenture of trust or similar instrument, may be amended or abrogated, and as to the amount of securities the holders of which must consent thereto, and the manner in which such consent may be given;

  20. The terms and conditions upon which any or all of the securities become or may bedeclared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived;

  21. All such acts and things as may be necessary or convenient or desirable in order tosecure the district's securities, or, in the discretion of the board, tend to make the securities more marketable, notwithstanding that such covenant, act, or thing may not be enumerated in this part 5, it being the intention hereof to give a district power to do all things in the issuance of securities and for their security, except as specifically limited in this part 5.

Source: L. 62: p. 211, § 14. C.R.S. 1963: § 89-15-28.


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