2010 Tennessee Code
Title 7 - Consolidated Governments
Chapter 55 - Industrial Building Bond Act of 1955
7-55-108 - Bond resolution Contents and covenants Receivers Recourse.

7-55-108. Bond resolution Contents and covenants Receivers Recourse.

(a)  Any resolution authorizing the issuance of bonds under this chapter may contain covenants as to the:

     (1)  Use and disposition of the rentals from the industrial building for which the bonds are to be issued, including the creation and maintenance of reserves;

     (2)  Issuance of other or additional bonds payable from the income and revenues from such industrial building;

     (3)  Maintenance and repair of such industrial building;

     (4)  Insurance to be carried on the industrial building and the use and disposition of insurance moneys; and

     (5)  Terms and conditions upon which the holders of the bonds, or any portion of the bonds or any trustees for the bonds, shall be entitled to the appointment of a receiver by the chancery court, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of the industrial building and lease and maintain the industrial building, prescribe rentals and collect, receive, and apply all income and revenues thereafter arising from the rentals in the same manner and to the same extent as the municipality itself might do.

(b)  The provisions of this chapter and any such resolution or resolutions shall be a contract with the holder or holders of the bonds and shall continue in effect until the principal of and the interest on the bonds so issued shall have been fully paid, and the duties of the municipality and its governing body and officers under this chapter, and any such resolution or resolutions shall be enforceable by a bondholder by mandamus, or other appropriate suit, action or proceedings in any court of competent jurisdiction.

[Acts 1955, ch. 209, § 10; T.C.A., § 6-2908.]