12-5225.   Ordinance authorizing issuance of bonds; covenants.Any ordinance authorizing the issuance of the bonds under this act may containcovenants regarding (a) the use and disposition of the revenuesand receipts from any home mortgage loans for which the bonds are to beissued, including the creation and maintenance of such reasonable and adequatereserves as the governing body may determine; (b) the insurance to be carriedon any home mortgage loan or bonds and the use and disposition of the proceedsof such insurance; (c) the appointment of one or more state or nationalbanks or trust companies within or without the state, having the necessarytrust powers, as trustee or custodian for the benefit of the bondholders, paying agentor bond registrar; (d) the investment of any funds held by such trusteeor custodian; (e) the maximum interest rate payable on any home mortgageloan; and (f) the terms andconditions upon which the holders of the bonds or any portion thereof, orany trustees therefor, are entitled to the appointment of a receiver bya court of competent jurisdiction, and the terms and conditions may providethat the receiver may take possession of the home mortgageloans or any part thereof and maintain, sell or otherwise dispose of suchhome mortgage loans, prescribe other payments and collect, receive and applyall income and revenues thereafter derived therefrom. An ordinance authorizingthe issuance of bonds under this act may provide that payment of the principalof and interest on any bonds issued under this act shall be secured by amortgage, pledge, security interest, insurance agreement or indenture oftrust of or with respect to such home mortgage loans and a lien upon therevenues and receipts derived therefrom or from any notes or other obligationsof lending institutions, with respect to which the bonds are issued. Suchmortgage, pledge, security interest, insurance agreement or indenture oftrust may contain such covenants and agreements as may be necessary or appropriateto safeguard the interests of the holders of the bonds and shall be executedin the manner authorized by the ordinance authorizing the bonds. The provisionsof this act and any such ordinance and any such mortgage, pledge, securityinterest, insurance agreement or indenture of trust shall constitute acontract with the holder or holders of the bonds and continue in effectuntil the principal of, the interest on, and the redemption premiums, ifany, on the bonds have been fully paid or provision made for the paymentthereof, and the duties of the city or county and its corporate authoritiesand officers under this act and any such ordinance and any such mortgage,pledge, security interest, insurance agreement or indenture of trust shallbe enforceable as provided therein by any bondholder by mandamus, foreclosureof any such mortgage, pledge, security interest or indenture of trust orother appropriate suit, action or proceeding in any court of competent jurisdiction;provided the ordinance or any mortgage, pledge, security interest, insuranceagreement or indenture of trust under which the bonds are issued may providethat all such remedies and rights to enforcement may be vested in a trustee,with full power of appointment, for the benefit of all the bondholders,which trustee shall be subject to the control of such number of holdersor owners of any outstanding bonds as provided therein.

      History:   L. 1982, ch. 60, § 7; L. 1983, ch. 71, § 5; May 5.