SEC. 57-3-21. Security for payment of bonds.
The principal of, redemption premium, if any, and interest on any bonds issued under the authority of this chapter shall be secured by a pledge of the revenues derived from the lease or sale of the project, may be secured by a mortgage covering all or any part of the project or any additional property granted as security for the bonds, may be secured by a pledge of the lease of such project and may be secured by such additional security as the governing body shall require. The proceedings under which such bonds are authorized to be issued or any such mortgage may contain any agreements and provisions customarily contained in instruments securing bonds, including, without limitation, the generality of the foregoing provisions respecting the fixing and collection of rents for any projects, covered by such proceedings or mortgage, the terms to be incorporated in the lease of such project, the maintenance and insurance of such project, to include the establishment of an escrow or reserve fund for deposits of advance insurance premiums, the creation and maintenance of special funds from revenues from such project, and rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the governing body shall deem advisable and as shall not be in conflict with the provisions of this chapter. However, in making such agreements or provisions, a municipality shall not have the power to obligate itself except with respect to the project and application of revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers. The proceedings authorizing any bonds hereunder and any mortgage securing such bonds may provide that, in the event of default in payment of principal of, or the interest on, such bonds, or in the performance of any agreement contained in such proceedings or mortgage, such payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect rents and to apply the revenues from the project in accordance with such proceedings or the provisions of such mortgage. Any such mortgage may provide also that, in the event of default in such payment or the violation of any agreement contained therein, it may be foreclosed either by sale at public outcry or by proceedings in equity, and may provide that any trustee under such mortgage or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale if the highest bidder therefor. No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers. The trustee or any trustees under any mortgage or any depository specified by such mortgage may be such persons or corporations as the governing body shall designate, including nonresidents of Mississippi and banks or trust companies incorporated under the laws of the United States or the laws of other states of the United States. When any municipal property acquired under the authority of this chapter becomes vacant, through unforeseen circumstances, such as default by the lessee, the municipality may exercise the authority contained in sections 19-7-7 and 21-37-45, Mississippi Code of 1972, to have this property insured and the cost thereof paid out of the municipal treasury until such a time as the property is again leased.
SOURCES: Codes, 1942, Sec. 8936-60; Laws, 1960, ch. 147, Sec. 10; 1964, ch. 217, Sec. 4; 1966, ch. 235, Sec. 4; 1976, ch. 419, Sec. 3, eff from and after passage (approved May 5, 1976).