36-1482

36-1482. Power of municipality to provide
additional security for bonds

A. In connection with the issuance of bonds pursuant to section 36-1481, or the
incurring of obligations under leases, and in order to secure the payment of such bonds
or obligations, a municipality, in addition to its other powers, may:

1. Prescribe the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the holders of which shall
consent thereto and the manner in which such consent may be given.

2. Vest in any obligees the right to enforce the payment of such bonds or any
covenants securing or relating to the bonds.

3. Vest in any obligee or obligees holding a specified amount in such bonds the
right, in the event of a default, to take possession of and use, operate and manage any
redevelopment project or any part thereof, title to which is in the municipality, or any
funds connected therewith, and to collect the rents and revenues arising therefrom and to
dispose of such monies in accordance with the agreement of the municipality with such
obligees.

4. Provide for the powers and duties of such obligees and limit the liabilities
thereof.

5. Provide the terms and conditions upon which such obligees may enforce any
covenant or rights securing or relating to the bonds.

6. Exercise all or any part or combination of the powers granted by this
subsection.

7. Make such covenants and do any and all such acts and things necessary,
convenient or desirable in order to secure its bonds, or, in the absolute discretion of
the municipality, as will tend to make the bonds more marketable even if such covenants,
acts or things are not enumerated in this section.

B. A municipality may by its resolution, trust indenture, mortgage, lease or other
contract confer upon any obligee holding or representing a specified amount in bonds
issued pursuant to section 36-1481, 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 an action or proceeding in any court of competent
jurisdiction:

1. To require the municipality and the officials, agents and employees thereof to
account as if it and they were the trustees of an express trust, and

2. To obtain the appointment of a receiver of any redevelopment project of the
municipality or any part thereof, title to which is in the municipality, and of the rents
and profits therefrom.

C. If such receiver is appointed, he may enter and take possession of, carry out,
operate and maintain the project or any part thereof and collect and receive all fees,
rents, revenues or other charges thereafter arising therefrom, and shall keep such monies
in a separate account or accounts and apply them in accordance with the obligations of
the municipality as the court directs.