40-1133

40-1133. Provision of bond resolution;
covenants

A. A resolution pertaining to issuance of bonds under this article may contain
covenants as to:

1. The purpose to which the proceeds of sale of the bonds may be applied and to the
use and disposition thereof.

2. The use and disposition of the revenues of the project for which the bonds are
to be issued.

3. The issuance of other or additional bonds, payable from the revenue received
from the operation of the authority and its equipment and facilities.

4. The operation and maintenance of the authority and its equipment and facilities.

5. The insurance to be carried thereon and the use and disposition of insurance
monies.

6. The use of capitalized interest, reserve and sinking funds and any other funds
as the authority deems necessary to the proper handling of authority monies.

7. Books of account and the inspection and audit thereof.

8. The terms and conditions upon which the holders of the bonds, or any proportion
of them, or a trustee therefor, shall be entitled to the appointment of a receiver, who
may enter and take possession of the authority's records, equipment and facilities,
operate and maintain it, prescribe charges, fees and rentals and collect, receive and
apply all revenues therefrom thereafter arising in the same manner as the board itself
might do, until such time as the terms and conditions of the bonds are satisfied, at
which time the receiver shall return possession of the authority and its equipment and
facilities to the board.

B. The provisions of this article and any such resolution shall be deemed a
contract with the holders of the bonds, and the duties of the board under this article
and resolution shall be enforceable by mandamus or other appropriate action in a court of
competent jurisdiction.

C. Neither the members of the board nor any person executing the bonds shall be
personally liable for the payment of the bonds.