2019 Nevada Revised Statutes
Chapter 539 - Irrigation Districts
NRS 539.6375 - Covenants and other provisions.

Any resolution of the board providing for the issuance of any bonds additionally secured by pledged revenues and any indenture or other instrument or proceedings appertaining thereto may contain covenants or other provisions, even if those covenants and provisions may limit the exercise of powers conferred by this chapter, in order to secure the payment of those bonds, in agreement with the holders of those bonds, including covenants or other provisions as to any of the following:

1. The pledged revenues, the assessments and the taxes to be fixed, charged or levied and the collection, use and disposition thereof, including the foreclosure of liens for delinquencies, the discontinuance of services, facilities or use of any properties or facilities, prohibition against free service, the collection of penalties and the costs of collection and the use and disposition of any money of the district, derived or to be derived, from any source designated in the provisions of this chapter;

2. The acquisition or improvement of or equipment for all or any part of properties pertaining to any project or other facilities;

3. The creation and maintenance of reserves or sinking funds to secure the payment of the principal of and interest on any bonds or of the expenses of operation and maintenance of a project and other facilities, or part thereof, and the source, custody, security, regulation, use and disposition of any such reserves or funds, including the powers and duties of any trustee with regard thereto;

4. A fair and reasonable payment by the district from its general fund or other available money for the project and other facilities or for services rendered thereby to the district;

5. The payment of the cost of any project by delineating the purposes to which the proceeds of the sale of the bonds may be applied, and the custody, security, use, expenditure, application and disposition thereof;

6. The temporary investment and any reinvestment of proceeds of bonds, any assessments or any taxes or pledged revenues, or any combination thereof;

7. The pledge of and the creation of a lien upon pledged revenues and the proceeds of bonds, pending their application to defray the cost of any project, to secure the payment of bonds issued pursuant to this chapter;

8. The payment of the principal of and interest on the bonds, and any prior redemption premiums due in connection therewith, and the sources and methods thereof, the rank or priority of any bonds as to any lien or security for payment, the acceleration of any maturity of any bonds, or the issuance of other or additional bonds payable from or constituting a charge against or lien upon any pledged revenues or other money pledged for the payment of bonds and the creation of future liens and encumbrances;

9. The use, regulation, inspection, management, operation, maintenance or disposition, or any limitation on or regulation of the use, of all or any part of the project and other facilities;

10. The determination or definition of net revenues from the project and other facilities or of the expenses of operation and maintenance of the project and other facilities, the use and disposition of those revenues and the manner of and limitations upon paying those expenses;

11. The creation of special funds and accounts appertaining to any pledged revenues or to the bonds;

12. The insurance to be carried by the district or any other person in interest and the use and disposition of money from the insurance, the acquisition of completion, performance, surety and fidelity bonds appertaining to any project or funds, or both, and the use and disposition of any proceeds of those bonds;

13. Books of account, the inspection and audit thereof, and other records appertaining to any project, facilities or pledged revenues;

14. The assumption, payment or discharge of any obligation, lien or other claim relating to any part of any project, any facilities or any securities having or which may have a lien on any part of any pledged revenues or other money of the district;

15. Limitations on the powers of the district to acquire or operate, or permit the acquisition or operation of, any structures, facilities or properties which may compete or tend to compete with the project and other facilities;

16. The vesting in a corporate or other trustee of such property, rights, powers and duties in trust as the board may determine, including any or all of the rights, powers and duties of the trustee appointed by the holders of the bonds and limiting or abrogating the right of those holders to appoint a trustee, or limiting the rights, duties and powers of that trustee;

17. Any defaults, rights and liabilities arising therefrom, and the rights, liabilities, powers and duties arising upon the breach by the district of any covenants, conditions or obligations;

18. The terms and conditions upon which the holders of the bonds or any portion, percentage or amount of them may enforce any covenants or provisions made by the district in the resolution or duties imposed thereby;

19. The terms and conditions upon which the holders of the bonds or of a specified portion, percentage or amount thereof, or any trustee therefor, are entitled to the appointment of a receiver, who may enter and take possession of the project and other facilities or service, operate and maintain them, prescribe fees, rates and charges, and collect, receive and apply all revenues thereafter arising therefrom in the same manner as the district might do;

20. A procedure by which the terms of any resolution authorizing bonds, or any other contract with any holders of bonds, including an indenture of trust or similar instrument, may be amended or abrogated, and as to the proportion, percentage or amount of bonds the holders of which must consent thereto, and the manner in which that consent may be given;

21. The terms and conditions upon which any or all of the bonds become or may be declared due before maturity, and as to the terms and conditions upon which that declaration and its consequences may be waived; and

22. All such acts as may be necessary, convenient or desirable in order to secure the bonds, or in the discretion of the board tend to make the securities more marketable, even if such covenant or act is not enumerated in this section, to give the board the power to do in the name and on behalf of the district all things in the issuance of bonds and for their security, except as expressly limited in this chapter.

(Added to NRS by 1985, 2055)