§ 2-31-319. Covenants and resolutions authorizing issuance of bonds.

Any resolution or resolutions authorizing the issuance of bonds, including refunding bonds, under this act [article], may contain covenants as to:

(1)

The purpose or purposes to which the proceeds of sale of said bonds may be applied, and the securing, use and disposition thereof including, if deemed desirable, the appointment of a trustee or depository for said bonds.

(2)

The use and disposition of the revenue derived from such utility system or any special assessments levied therefor, including the parts thereof heretofore or hereafter constructed or acquired, and the creation and maintenance of reserve funds.

(3)

The pledging of all or any part of the gross revenues derived from the ownership, operation or control of such utility system or any special assessment levied therefor, including any part thereof heretofore or hereafter constructed or acquired, remaining after the payment of all the expenses of operation, maintenance and repair of said utility system, to the payment of the principal of and interest on bonds issued pursuant to this act [article], and for such reserve and other funds as may be deemed necessary or desirable.

(4)

The fixing, establishing and collection of such fees, rentals or other fees for the use of the services and facilities of such utility system, including any part thereof heretofore or hereafter constructed or acquired, and the revision of same from time to time, as will always provide revenues at least sufficient to provide for all expenses of operation, maintenance and repair of such utility system, the payment of the principal of and interest on all bonds or other obligations payable from the revenues of such utility system, and all reserve and other funds required by the terms of the resolution or resolutions authorizing the issuance of such bonds.

(5)

The transfer from the general funds of the county to the account or accounts of the utility system of an amount equal to the cost of furnishing the county, or any of its departments, boards or agencies with the services and facilities of such utility system.

(6)

Limitations or restrictions upon the issuance of additional bonds or other obligations payable from revenues of such utility system, or special assessments, and the rights and remedies of the holders of such additional bonds, or refunding bonds, issued therefor.

(7)

The procedure, if any, by which the terms of any covenant with the holder or holders of bonds issued pursuant to this act [article] may be amended, abrogated or altered.

(8)

The rank or priority, as to lien and source of security for payment from the revenues of such utility system, including the parts theretofore or thereafter acquired or constructed, between bonds issued pursuant to this act [article] or thereafter issued.

(9)

The methods and remedies to be used and enforced by the board of county commissioners upon the failure of any user to pay for the services and facilities of such utility system.

(10)

The appointment of a trustee or trustees to hold and apply any revenues or special assessments derived from such utility system.

(11)

The appointment of a trustee or trustees to act for and in behalf of bondholders, and the manner and terms of such appointment and the powers of such trustee or trustees.

(12)

The manner and terms upon which all bonds or other obligations issued pursuant to this act [article] may be declared immediately due and payable upon the happening of a default in the payment of the principal of or interest thereon, or in the performance of any covenant or agreement with bondholders, and the manner and terms upon which such defaults may be declared cured, and the acceleration of the maturity of such bonds or other obligations rescinded and repealed.

(13)

The amount and manner of payment, if any, from the revenues of such utility system, to the general fund of the county in lieu of taxes which would otherwise be paid to the county, if such utility system were privately owned and operated, and the rank and priority between such payments in lieu of taxes, if any, and other payments for the maintenance and operation of such utility system, debt services and reserve or other funds required to be made pursuant to covenants with the holders of bonds issued pursuant to this act [article].

(14)

Budgets for the annual operation, maintenance and repair of such utility system, and restrictions and limitations upon expenditure for such purposes, and the manner of adoption, modification, repeal or amendment thereof.

(15)

The amounts of insurance to be maintained upon such utility system or any part thereof, and the use and disposition of the proceeds of any insurance.

(16)

The keeping of books of account relating to such utility system, and the audit and inspection thereof.

(17)

Limitations upon the number or percentage of bondholders which may be required, and the manner of filing evidence of such number or percentage for the appointment of a trustee or receiver for such utility system, as provided in this act [article].

(18)

Limitations or restrictions on the right of the county to sell, mortgage, dispose of, or otherwise encumber such utility system or any part thereof.

(19)

The methods and means for the enforcement and collection of fees, rentals or other charges for the services and facilities of such utility system, and rules and regulations, including reasonable penalties, for such enforcement and collection.

(20)

Such other and additional covenants as shall be deemed necessary or desirable for the security of the holders of bonds or other obligations issued pursuant to this act [article].

All such covenants and agreements shall constitute valid and binding contracts between the county and the holders of any bonds or other obligations issued pursuant to such resolution, regardless of the time of issuance thereof, and, subject to any limitations contained in such resolution, shall be enforceable by any holder or holders of such bonds or other obligations, acting either for himself or themselves alone, or acting in behalf of all other holders of such bonds or other obligations, by appropriate proceedings in any court of competent jurisdiction.

(Ord. No. 14-41, § 39, 10-7-14)