Obligee rights -- Board may confer other rights.

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  • (1) In addition to a right that is conferred on an obligee of an authority bond under this chapter and subject to contractual restrictions binding on the obligee, an obligee may:
    • (a) by mandamus, suit, action, or other proceeding:
      • (i) compel the authority and its board, officers, agents, or employees to perform every term, provision, and covenant contained in a contract of the authority with or for the benefit of the obligee; and
      • (ii) require the authority to carry out the covenants and agreements of the authority and to fulfill the duties imposed on the authority by this part; and
    • (b) by suit, action, or proceeding in equity, enjoin an act or things that may be unlawful or violate the rights of the obligee.
  • (2)
    • (a) In a resolution authorizing the issuance of an authority bond or in a trust indenture, mortgage, lease, or other contract, the board may confer upon an obligee holding or representing a specified amount in an authority bond, a right described in Subsection (2)(b):
      • (i) to accrue upon the happening of an event or default prescribed in the resolution, indenture, mortgage, lease, or other contract; and
      • (ii) to be exercised by suit, action, or proceeding in a court of competent jurisdiction.
    • (b)
      • (i) A right that the board may confer under Subsection (2)(a) is a right to:
        • (A) cause possession of all or part of a qualifying energy delivery project to be surrendered to an obligee;
        • (B) obtain the appointment of a receiver of all or part of:
          • (I) a qualifying energy delivery project; and
          • (II) the rents and profits from a qualifying energy delivery project; and
        • (C) require the authority, its board, and its employees to account as if the authority, board, and employees were the trustees of an express trust.
      • (ii) If a receiver is appointed through the exercise of a right granted under Subsection (2)(b)(i)(B), the receiver:
        • (A) may:
          • (I) enter and take possession of a qualifying energy delivery project or any part of the qualifying energy delivery project;
          • (II) operate and maintain the qualifying energy delivery project; and
          • (III) collect and receive the fees, rents, revenues, or other charges arising from the qualifying energy delivery project after the receiver's appointment; and
        • (B) shall:
          • (I) keep money collected as receiver for the authority in one or more separate accounts; and
          • (II) apply the money collected as receiver pursuant to the authority obligations as the court directs.




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