Sec. 14. (a) In the event that the issuing body shall default in the payment of the principal or interest on any of the refunding bonds after the bonds become due, either at maturity or upon call for redemption, a default shall continue for a period of thirty (30) days.

(b) If the issuing body or the governing body or officers, agents, or employees:

(1) fail or refuse to comply with this chapter; or

(2) default in any agreement made with the holders of the refunding bonds;

any holder or holders of refunding bonds, or trustee may apply in an appropriate judicial proceeding in the circuit or superior court of the county in which the issuing body or the greater territorial portion is situated, or in which the enterprise is located, or any court of competent jurisdiction, for the appointment of a receiver of the enterprise, whether or not all refunding bonds have been declared due and payable and whether or not such holder or holders, or trustee, is seeking or has sought to enforce any other right, or exercise any remedy in connection with such refunding bonds.

(c) Upon an application described in subsection (b), the circuit or superior court may appoint, and if the application is made by the holders of twenty-five percent (25%) in principal amount of such refunding bonds then outstanding, or any trustee for holders of refunding bonds in such principal amount, shall appoint a receiver of the enterprise.

(d) The receiver appointed:

(1) shall directly or by the receiver's agents and attorneys enter into and take possession of the enterprise;

(2) may exclude the issuing body, its governing body, officers, agents, and employees and all persons claiming under them;

(3) shall have, hold, use, operate, manage, and control, the enterprise in the name of the issuing body or otherwise, as the receiver may deem best; and

(4) shall exercise all rights and powers of the issuing body with respect to the enterprise as the issuing body itself might do.

(e) A receiver shall maintain, restore, insure and keep insured, the enterprise, and from time to time shall make all necessary or proper repairs as to the receiver may seem expedient and shall establish, levy, maintain and collect such fees, tolls, rentals, and other charges in connection with the enterprise as the receiver may deem necessary or proper and reasonable, and shall collect and receive all revenues and shall deposit the same in a separate account and apply such revenues so collected and received in such manner as the court shall direct.

(f) Whenever a refunding bond is due, including interest, and upon any other notes, bonds, or other obligations, including interest, having a charge, lien, or encumbrance on the revenues of the enterprise and under any of the terms of any covenants or agreements with bondholders shall have been paid or deposited, and all defaults shall have been cured and made good, the court may in its discretion, and after notice and hearing as it deems reasonable and proper, direct the receiver to surrender possession of the enterprise to the issuing body, the same right of the holders of the refunding bonds to secure the appointment of a receiver to exist upon any subsequent default.

(g) The receiver shall in the performance of the powers conferred upon the receiver, act under the direction and supervision of the court making the appointment and shall at all times be subject to the orders and decrees of such court and may be removed. This section does not limit or restrict the jurisdiction of the court to enter other orders and decrees as the court may deem necessary or appropriate for the exercise by the receiver of the receiver's duties.

[Pre-Local Government Recodification Citation: 19-8-7-14.]

As added by Acts 1980, P.L.8, SEC.10. Amended by P.L.136-2018, SEC.23.