As Amended
SEC. 21-33-515. Content of resolution regarding issuance of bonds; bond holders' lien on revenue pledged to pay bonds; state not to interfere with special taxes.
(1) A resolution issuing bonds in compliance with this article may include any covenants which the governing authority deems necessary to make such bonds secure and marketable, including, but without limitation, covenants regarding the application of the bond proceeds; the pledging, application and securing of special taxes; the creation and maintenance of reserves; covenants to levy special taxes; covenants to enforce agreements; the investment of funds; the issuance of additional bonds; the terms and conditions upon which bondholders may exercise their rights and remedies; the replacement of lost, destroyed or mutilated bonds; the definition, consequences and remedies of an event of default; and the appointment of a receiver in the event of a default.
(2) All taxes or other revenues pledged to the payment of such bonds shall be subject to a lien in favor of the holders of such bonds, and all such taxes received by the issuing authority, or the municipality if such bonds shall have been issued by a redevelopment authority or an urban renewal agency shall be immediately subject to such lien without any physical delivery thereof or further act by the issuing authority, and such lien shall be effective as against all parties asserting claims against the issuing authority or municipality, whether by way of tort, contract or otherwise, whether or not such parties may have had notice of such lien. Such pledge or trust agreement creating the same need not be filed or recorded except in the official minutes of the issuing authority.
(3) The state does hereby covenant with the holders of any such bonds that it will not, while any such bonds shall be outstanding, limit or diminish the right and power of any municipality to levy the special taxes authorized by this article, or the right and power of any municipality, urban renewal agency or redevelopment authority to fulfill any covenants with or for the benefit of such bondholders.
SOURCES: Laws, 1993, ch. 573, § 8; reenacted without change, 1998, ch. 502, § 8; brought forward without change, Laws, 2000, ch. 459, § 10, HB 844, eff from and after February 12, 2001 (the date the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965 to the amendment of this section).
PREVIOUS VERSIONS: Pre-2001