45-1714

45-1714. Remedies of bondholders and
noteholders

A. In the event the authority defaults in the payment of principal of or interest
on any issue of bonds or notes after the same shall become due, whether at maturity or
upon call for redemption, and such default shall continue for a period of thirty days, or
in the event the authority shall fail or refuse to comply with the provisions of this
article, or shall default in any agreement made with the holders of any issue of bonds or
notes, the holders of twenty-five per cent in aggregate principal amount of the bonds or
notes of such issue then outstanding, by instrument or instruments filed in the office of
the clerk of Maricopa county and proved or acknowledged in the same manner as a deed to
be recorded, may appoint a trustee to represent the holders of such bonds or notes for
the purposes provided in this article.

B. Such trustee may, and upon written request of the holders of twenty-five per
cent in principal amount of such bonds or notes then outstanding shall, in his or its own
name:

1. By mandamus or other suit, action or proceeding at law or in equity enforce all
rights of the bondholders or noteholders, including the right to require the authority to
collect fees, rentals and charges adequate to carry out any agreements with the holders
of such bonds or notes and to perform its duties under this title.

2. Bring suit upon such bonds or notes.

3. By action or suit in equity, require the authority to account as if it were the
trustee of an express trust for the holders of such bonds or notes.

4. By action or suit in equity, enjoin any acts or things which may be unlawful or
in violation of the rights of the holders of such bonds or notes.

5. Declare all such bonds or notes due and payable, and if all defaults shall be
made good then with the consent of the holders of twenty-five per cent of the principal
amount of such bonds or notes then outstanding, to annul such declaration and its
consequences.

C. Such trustee, whether or not the issue of bonds or notes represented by such
trustee has been declared due and payable, shall be entitled as of right to the
appointment of a receiver of any project or projects included in the state water and
power plan or any part of the plan, the fees, rentals, charges or other revenues of which
are pledged for the security of the bonds or notes of such issue and such receiver may
enter and take possession of such project or projects and, subject to any pledge or
agreement with bondholders, shall take possession of all monies and other property
derived from or applicable to the construction, operation, maintenance and reconstruction
of such project or projects, and proceed with any construction thereon which the director
or the authority is under obligation to do and shall operate, maintain and reconstruct
such project or projects, and collect and receive all fees, rentals, charges and other
revenues thereafter arising therefrom subject to any pledge thereof or agreement with
bondholders or noteholders relating thereto and perform the public duties and carry out
the agreements and obligations of the director and the authority under the direction of
the court. In any suit, action or proceeding by the trustee the fees, counsel fees and
expenses of the trustee and of the receiver, if any, shall constitute taxable
disbursements and all costs and disbursements allowed by the court shall be a first
charge on any fees, rentals and other revenues derived from such project or projects.

D. Such trustee shall in addition to the foregoing have and possess all of the
powers necessary or appropriate for the exercise of any functions specifically set forth
herein or incident to the general representation of bondholders or noteholders in the
enforcement and protection of their rights.

E. The superior court shall have jurisdiction of any suit, action or proceeding by
the trustee on behalf of such bondholders or noteholders. The venue of any such suit,
action or proceeding shall be laid in Maricopa county.