§506. Rights of bondholders

A. Any owner of bonds issued under this Part may by suit, action, mandamus, or other proceedings, protect and enforce the statutory lien provided by this Part as well as the security provided for such bonds or the repayment thereof by the proceedings authorizing such bonds, and may by suit, action, mandamus, or other proceedings enforce and compel performance of all of the duties required to be performed by the governing authority of the issuer of such bonds or as may be provided for in the proceedings authorizing the issuance of such bonds.

B. No member of the governing authority or any officer or employee of the governmental entity that has issued bonds, or any person executing such bonds shall be personally liable on such bonds.

C. The governing authority may in the proceedings authorizing bonds provide for the respective priorities of its separate series of bonds, and may provide for the issuance of additional parity bonds in the future pursuant to such procedure or restrictions as may be specified in such proceedings, or as may be agreed to by the owners of any series of bonds. In the absence of such provision, or agreement of the owners, if more than one series of bonds, other than general obligation bonds, shall be issued hereunder payable from the same taxes or other revenues, then the priority of lien on such revenues shall depend on the time of the delivery of such series of bonds, each series enjoying a lien prior and superior to that enjoyed by any series of bonds subsequently delivered, except that as to any series of bonds which may be authorized as a unit but delivered from time to time in tranches or separate series, the governing authority may in the proceedings authorizing the issuance of such bonds provide that all of the bonds of such series or issue shall be coequal as to lien regardless of the time of delivery.

D. Proceedings authorizing the issuance of bonds may contain such covenants with the future owner or owners of the bonds as to the taxes or revenues that secure such bonds, the disposition of such taxes or revenues, the issuance of future bonds, and such other pertinent matters as the governing authority may desire to assure the marketability of such bonds, provided such covenants are not inconsistent with the provisions of this Part.

E. Any proceedings authorizing the issuance of bonds may contain such provisions to assure the enforcement, collection, and proper application of the taxes or revenues pledged as security for the bonds as the governing authority may think proper, where not inconsistent with the provisions of this Part. When any bonds shall have been issued pursuant to this Part, the proceedings of the governing authority relating to the pledged taxes or revenues, and the obligation of the governing authority to continue to collect and allocate such pledged taxes or revenues and to apply such pledged taxes or revenues in accordance with the provisions of said proceedings, shall be irrevocable until such bonds have been paid in full as to principal and interest, and shall not be subject to amendment in any manner which would impair the rights of the owners from time to time of such bonds or which would in any way jeopardize the prompt payment of principal thereof or interest thereon.

Acts 2018, No. 569, §1, eff. July 1, 2018.