1
(I) THE AUTHORITY DEFAULTS IN THE PAYMENT OF
2 PRINCIPAL OR INTEREST
ON A BOND, AT MATURITY OR UPON CALL
3 FOR REDEMPTION; AND THE
DEFAULT CONTINUES FOR 30 DAYS.
4
(II) THE AUTHORITY FAILS TO COMPLY WITH THIS
5 CHAPTER.
6
(III) THE AUTHORITY DEFAULTS IN AN AGREEMENT MADE
7 WITH THE BONDHOLDERS.
8 (2) THE TRUSTEE
MUST BE APPOINTED BY INSTRUMENT:
9
(I) FILED IN THE OFFICE OF THE RECORDER OF DEEDS OF
10 THE COUNTY WHERE THE
AUTHORITY IS LOCATED; AND
11
(II) PROVED OR ACKNOWLEDGED IN THE SAME MANNER AS A
12 DEED TO BE RECORDED.
13 (3) A TRUSTEE
UNDER THIS SUBSECTION AND A TRUSTEE UNDER
14 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT,
MAY AND,
15 UPON WRITTEN REQUEST OF THE HOLDERS OF 25% OF
THE AGGREGATE
16 PRINCIPAL AMOUNT OF OUTSTANDING BONDS OR SUCH
OTHER
17 PERCENTAGE SPECIFIED IN THE DEED OF TRUST, INDENTURE
OR OTHER
18 AGREEMENT, SHALL, IN THE TRUSTEE'S NAME DO ANY
OF THE
19 FOLLOWING:
20
(I) BY ACTION AT LAW OR IN EQUITY, ENFORCE RIGHTS OF
21 THE BONDHOLDERS. THIS
SUBPARAGRAPH INCLUDES THE RIGHT TO
22 REQUIRE THE AUTHORITY
TO:
23
(A) COLLECT RATES, RENTALS OR OTHER CHARGES
24
ADEQUATE TO CARRY OUT ANY AGREEMENT AS TO, OR PLEDGE
25
OF, REVENUES OR RECEIPTS OF THE AUTHORITY;
26
(B) CARRY OUT ANY OTHER AGREEMENTS WITH, OR FOR
27
THE BENEFIT OF, BONDHOLDERS; AND
28
(C) PERFORM ITS AND THEIR DUTIES UNDER THIS
29
CHAPTER.
30
(II) BRING SUIT UPON THE BOND.
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1
(III) BY ACTION IN EQUITY REQUIRE THE AUTHORITY TO
2 ACCOUNT AS IF IT WERE
THE TRUSTEE OF AN EXPRESS TRUST FOR
3 THE BONDHOLDERS.
4
(IV) ENJOIN AN ACTION WHICH MAY BE UNLAWFUL OR IN
5 VIOLATION OF THE RIGHTS
OF THE BONDHOLDERS.
6
(V) BY NOTICE IN WRITING TO THE AUTHORITY, DECLARE
7 ALL BONDS DUE AND PAYABLE
AND, IF ALL DEFAULTS ARE MADE
8 GOOD, WITH THE CONSENT
OF THE BONDHOLDERS OF 25% OF THE
9 PRINCIPAL AMOUNT OF OUTSTANDING
BONDS, OR SUCH OTHER
10 PERCENTAGE SPECIFIED
IN THE DEED OF TRUST, INDENTURE OR
11 OTHER AGREEMENT, TO
ANNUL SUCH DECLARATION AND ITS
12 CONSEQUENCES.
13 (4) A TRUSTEE
UNDER THIS SUBSECTION OR A TRUSTEE UNDER
14 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT,
WHETHER OR
15 NOT ALL BONDS HAVE BEEN DECLARED DUE AND PAYABLE,
SHALL BE
16 ENTITLED TO THE APPOINTMENT OF A RECEIVER.
17 (5) A RECEIVER
UNDER PARAGRAPH (4):
18
(I) MAY ENTER AND TAKE POSSESSION OF A FACILITY OF
19 THE AUTHORITY OR ANY
PART OF A FACILITY THE REVENUES OR
20 RECEIPTS FROM WHICH
ARE OR MAY BE APPLICABLE TO THE
21 PAYMENT OF THE BONDS
IN DEFAULT;
22
(II) MAY OPERATE AND MAINTAIN THE FACILITY OR PART;
23
(III) MAY COLLECT AND RECEIVE ALL RENTALS AND OTHER
24 REVENUES ARISING FROM
THE FACILITY AFTER ENTRY AND
25 POSSESSION, IN THE SAME
MANNER AS THE AUTHORITY OR THE
26 BOARD MIGHT DO; AND
27
(IV) SHALL DEPOSIT MONEY COLLECTED UNDER
28 SUBPARAGRAPH (III) IN
A SEPARATE ACCOUNT AND APPLY THE
29 MONEY AS THE COURT DIRECTS.
30 (6) NOTHING IN
THIS CHAPTER AUTHORIZES A RECEIVER
20010S0780B1186
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1 APPOINTED UNDER PARAGRAPH (4) TO SELL, ASSIGN,
MORTGAGE OR
2 OTHERWISE DISPOSE OF ASSETS OF WHATEVER KIND
AND CHARACTER
3 BELONGING TO THE AUTHORITY. IT IS THE INTENTION
OF THIS
4 CHAPTER TO LIMIT THE POWERS OF THE RECEIVER TO
THE OPERATION
5 AND MAINTENANCE OF THE FACILITIES OF THE AUTHORITY
AS THE
6 COURT DIRECTS. NO BONDHOLDER OR TRUSTEE SHALL
HAVE THE RIGHT
7 IN AN ACTION AT LAW OR IN EQUITY TO COMPEL A
RECEIVER, NOR
8 SHALL A RECEIVER BE AUTHORIZED OR A COURT EMPOWERED
TO DIRECT
9 THE RECEIVER, TO SELL, ASSIGN, MORTGAGE OR OTHERWISE
DISPOSE
10 OF ASSETS OF WHATEVER KIND OR CHARACTER BELONGING
TO THE
11 AUTHORITY.
12 (7) THE TRUSTEE
HAS ALL POWERS NECESSARY OR APPROPRIATE
13 FOR THE EXERCISE OF FUNCTIONS SPECIFICALLY SET
FORTH IN THIS
14 SUBSECTION.
15 (C) JURISDICTION.--THE COURT OF COMMON
PLEAS OF THE JUDICIAL
16 DISTRICT IN WHICH THE AUTHORITY IS LOCATED SHALL HAVE
17 JURISDICTION OF AN ACTION BY THE TRUSTEE ON BEHALF OF THE
18 BONDHOLDERS.
19 (D) COSTS AND FEES.--IN AN ACTION BY THE
TRUSTEE THE COURT
20 COSTS, ATTORNEY FEES AND EXPENSES OF THE TRUSTEE AND OF THE
21 RECEIVER AND ALL COSTS AND DISBURSEMENTS ALLOTED BY THE COURT
22 SHALL BE A FIRST CHARGE ON REVENUE AND RECEIPTS DERIVED FROM THE
23 FACILITIES OF THE AUTHORITY, THE REVENUE OR RECEIPTS FROM WHICH
24 ARE OR MAY BE APPLICABLE TO THE PAYMENT OF THE BONDS SO IN
25 DEFAULT.
26 (E) DEFINITION.--AS USED IN THIS SECTION,
THE TERMS
27 "ADVERTISEMENT" OR "DUE PUBLIC NOTICE" SHALL MEAN A NOTICE
28 PUBLISHED AT LEAST TEN DAYS BEFORE THE AWARD OF A CONTRACT, IN
A
29 NEWSPAPER OF GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY
30 WHERE THE AUTHORITY HAS ITS PRINCIPAL OFFICE. IF NO NEWSPAPER
IS
20010S0780B1186
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1 PUBLISHED IN THAT MUNICIPALITY, THE NOTICE SHALL BE PUBLISHED IN
2 A NEWSPAPER IN THE COUNTY WHERE THE AUTHORITY HAS ITS PRINCIPAL
3 OFFICE. NOTICE MAY BE WAIVED IF THE AUTHORITY DETERMINES AN
4 EMERGENCY EXISTS, WHICH REQUIRES THE AUTHORITY TO PURCHASE THE
5 SUPPLIES AND MATERIALS IMMEDIATELY.