2016 Arkansas Code
Title 25 - State Government
Chapter 20 - Interlocal Cooperation Act
Subchapter 4 - -- Arkansas Municipal Electric Utility Interlocal Cooperation Act of 2003
§ 25-20-409. Lien in favor of bond holders

(a) The payment of the principal of bonds issued under this subchapter and the interest on the bonds may be secured by a lien on and security interest in an electric project or any specified portion of an electric project.

(b) It shall not be necessary to the perfection of the lien and pledge for such purposes that the trustee in connection with the bond issue or the holders of the bonds take possession of the collateral security.

(c) Subject to whatever restrictions may be contained in the resolution or indenture governing the bonds, any holder of bonds issued under the provisions of this subchapter may enforce either at law or in equity the mortgage lien and may compel by proper suit the performance of the duties of the officers of the issuing authority set forth in this subchapter.

(d) If default occurs in the payment of the principal of or interest on any of the bonds, any court having jurisdiction in any proper action may appoint a receiver to administer the electric project or the specified portion of the electric project pledged to the payment of the bonds on behalf of the authority, with the power to:

(1) Charge and collect rates sufficient to provide for the payment of the:

(A) Bonds and the interest on the bonds; and

(B) Operating expenses of the electric project; and

(2) Apply the income and revenues in conformity with this subchapter and the resolution or indenture providing for the issuance of the bonds.