TITLE 50

MUNICIPAL CORPORATIONS

CHAPTER 10

FINANCES

50-1037.  Bonds — Issuance — Terms — Conditions. Whenever revenue bonds are authorized to be issued, the city council shall by ordinance provide for the issuance thereof. The ordinance authorizing the issuance of said revenue bonds, for the purpose authorized, shall contain covenants as to:

(a)  The purpose or purposes to which the proceeds of the sale of said bonds may be applied and the use and disposition thereof;

(b)  The use and disposition of the revenue of the works or rehabilitated existing electrical generating facilities for which said bonds are to be issued, including the creation and maintenance of reserves;

(c)  The transfer from the general fund of the city to the account or accounts of the works or rehabilitated existing electrical generating facilities, of a sum or sums of money for furnishing the city or any of its departments, boards or agencies with the services, facilities and commodities of such works or rehabilitated existing electrical generating facilities;

(d)  The issuance of other or additional bonds payable from the revenue of such works or rehabilitated existing electrical generating facilities;

(e)  The operation and maintenance of such works or rehabilitated existing electrical generating facilities;

(f)  The insurance to be carried thereon, the use and disposition of insurance moneys;

(g)  Books of account and inspection and audit thereof;

(h)  The appointment and duties of a trustee. Provisions may be made for the securing of the bonds by a trust indenture, but no such indenture shall convey, mortgage or create any lien upon property of the city;

(i)  The terms and conditions upon which the holders thereof or any trustee therefor shall be entitled to the appointment of a receiver which receiver may enter and take possession of such works, operate and maintain the same, prescribe rates, fees, tolls or charges and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the city itself might do. The provisions of this section and of any such ordinance shall be a contract with the holder of said bonds, and the duties of the city and its council under this section and under such ordinance, shall be enforceable by the holder by mandamus or other appropriate suit, action or proceeding at law or in equity.

History:

[50-1037, added 1967, ch. 429, sec. 197, p. 1249; am. 1977, ch. 50, sec. 7, p. 98.]