12-5225.Ordinance authorizing issuance of bonds; covenants.
Any ordinance authorizing the issuance of the bonds under this act may contain
covenants regarding (a) the use and disposition of the revenues
and receipts from any home mortgage loans for which the bonds are to be
issued, including the creation and maintenance of such reasonable and adequate
reserves as the governing body may determine; (b) the insurance to be carried
on any home mortgage loan or bonds and the use and disposition of the proceeds
of such insurance; (c) the appointment of one or more state or national
banks or trust companies within or without the state, having the necessary
trust powers, as trustee or custodian for the benefit of the bondholders, paying agent
or bond registrar; (d) the investment of any funds held by such trustee
or custodian; (e) the maximum interest rate payable on any home mortgage
loan; and (f) the terms and
conditions upon which the holders of the bonds or any portion thereof, or
any trustees therefor, are entitled to the appointment of a receiver by
a court of competent jurisdiction, and the terms and conditions may provide
that the receiver may take possession of the home mortgage
loans or any part thereof and maintain, sell or otherwise dispose of such
home mortgage loans, prescribe other payments and collect, receive and apply
all income and revenues thereafter derived therefrom. An ordinance authorizing
the issuance of bonds under this act may provide that payment of the principal
of and interest on any bonds issued under this act shall be secured by a
mortgage, pledge, security interest, insurance agreement or indenture of
trust of or with respect to such home mortgage loans and a lien upon the
revenues and receipts derived therefrom or from any notes or other obligations
of lending institutions, with respect to which the bonds are issued. Such
mortgage, pledge, security interest, insurance agreement or indenture of
trust may contain such covenants and agreements as may be necessary or appropriate
to safeguard the interests of the holders of the bonds and shall be executed
in the manner authorized by the ordinance authorizing the bonds. The provisions
of this act and any such ordinance and any such mortgage, pledge, security
interest, insurance agreement or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in effect
until the principal of, the interest on, and the redemption premiums, if
any, on the bonds have been fully paid or provision made for the payment
thereof, and the duties of the city or county and its corporate authorities
and officers under this act and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus, foreclosure
of any such mortgage, pledge, security interest or indenture of trust or
other appropriate suit, action or proceeding in any court of competent jurisdiction;
provided the ordinance or any mortgage, pledge, security interest, insurance
agreement or indenture of trust under which the bonds are issued may provide
that 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 holders
or owners of any outstanding bonds as provided therein.
History: L. 1982, ch. 60, § 7; L. 1983, ch. 71, § 5; May 5.
12-5225.Ordinance authorizing issuance of bonds; covenants.
Any ordinance authorizing the issuance of the bonds under this act may contain
covenants regarding (a) the use and disposition of the revenues
and receipts from any home mortgage loans for which the bonds are to be
issued, including the creation and maintenance of such reasonable and adequate
reserves as the governing body may determine; (b) the insurance to be carried
on any home mortgage loan or bonds and the use and disposition of the proceeds
of such insurance; (c) the appointment of one or more state or national
banks or trust companies within or without the state, having the necessary
trust powers, as trustee or custodian for the benefit of the bondholders, paying agent
or bond registrar; (d) the investment of any funds held by such trustee
or custodian; (e) the maximum interest rate payable on any home mortgage
loan; and (f) the terms and
conditions upon which the holders of the bonds or any portion thereof, or
any trustees therefor, are entitled to the appointment of a receiver by
a court of competent jurisdiction, and the terms and conditions may provide
that the receiver may take possession of the home mortgage
loans or any part thereof and maintain, sell or otherwise dispose of such
home mortgage loans, prescribe other payments and collect, receive and apply
all income and revenues thereafter derived therefrom. An ordinance authorizing
the issuance of bonds under this act may provide that payment of the principal
of and interest on any bonds issued under this act shall be secured by a
mortgage, pledge, security interest, insurance agreement or indenture of
trust of or with respect to such home mortgage loans and a lien upon the
revenues and receipts derived therefrom or from any notes or other obligations
of lending institutions, with respect to which the bonds are issued. Such
mortgage, pledge, security interest, insurance agreement or indenture of
trust may contain such covenants and agreements as may be necessary or appropriate
to safeguard the interests of the holders of the bonds and shall be executed
in the manner authorized by the ordinance authorizing the bonds. The provisions
of this act and any such ordinance and any such mortgage, pledge, security
interest, insurance agreement or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in effect
until the principal of, the interest on, and the redemption premiums, if
any, on the bonds have been fully paid or provision made for the payment
thereof, and the duties of the city or county and its corporate authorities
and officers under this act and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus, foreclosure
of any such mortgage, pledge, security interest or indenture of trust or
other appropriate suit, action or proceeding in any court of competent jurisdiction;
provided the ordinance or any mortgage, pledge, security interest, insurance
agreement or indenture of trust under which the bonds are issued may provide
that 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 holders
or owners of any outstanding bonds as provided therein.
History: L. 1982, ch. 60, § 7; L. 1983, ch. 71, § 5; May 5.
12-5225.Ordinance authorizing issuance of bonds; covenants.
Any ordinance authorizing the issuance of the bonds under this act may contain
covenants regarding (a) the use and disposition of the revenues
and receipts from any home mortgage loans for which the bonds are to be
issued, including the creation and maintenance of such reasonable and adequate
reserves as the governing body may determine; (b) the insurance to be carried
on any home mortgage loan or bonds and the use and disposition of the proceeds
of such insurance; (c) the appointment of one or more state or national
banks or trust companies within or without the state, having the necessary
trust powers, as trustee or custodian for the benefit of the bondholders, paying agent
or bond registrar; (d) the investment of any funds held by such trustee
or custodian; (e) the maximum interest rate payable on any home mortgage
loan; and (f) the terms and
conditions upon which the holders of the bonds or any portion thereof, or
any trustees therefor, are entitled to the appointment of a receiver by
a court of competent jurisdiction, and the terms and conditions may provide
that the receiver may take possession of the home mortgage
loans or any part thereof and maintain, sell or otherwise dispose of such
home mortgage loans, prescribe other payments and collect, receive and apply
all income and revenues thereafter derived therefrom. An ordinance authorizing
the issuance of bonds under this act may provide that payment of the principal
of and interest on any bonds issued under this act shall be secured by a
mortgage, pledge, security interest, insurance agreement or indenture of
trust of or with respect to such home mortgage loans and a lien upon the
revenues and receipts derived therefrom or from any notes or other obligations
of lending institutions, with respect to which the bonds are issued. Such
mortgage, pledge, security interest, insurance agreement or indenture of
trust may contain such covenants and agreements as may be necessary or appropriate
to safeguard the interests of the holders of the bonds and shall be executed
in the manner authorized by the ordinance authorizing the bonds. The provisions
of this act and any such ordinance and any such mortgage, pledge, security
interest, insurance agreement or indenture of trust shall constitute a
contract with the holder or holders of the bonds and continue in effect
until the principal of, the interest on, and the redemption premiums, if
any, on the bonds have been fully paid or provision made for the payment
thereof, and the duties of the city or county and its corporate authorities
and officers under this act and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus, foreclosure
of any such mortgage, pledge, security interest or indenture of trust or
other appropriate suit, action or proceeding in any court of competent jurisdiction;
provided the ordinance or any mortgage, pledge, security interest, insurance
agreement or indenture of trust under which the bonds are issued may provide
that 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 holders
or owners of any outstanding bonds as provided therein.
History: L. 1982, ch. 60, § 7; L. 1983, ch. 71, § 5; May 5.