Delaware Code (Titles 8, 9, 25, 30)

9 Del. C. § 4507

Authorization of covenants in bonds

# (a)

In the event that the County issues bonds, the resolutions authorizing the issuance of such bonds may contain covenants as to:

# (1)

The purpose to which the proceeds of sale of the bonds may be applied and the use and disposition thereof;

# (2)

The use and disposition of the revenue of the water systems, the revenues of which are pledged to the payment of such bonds, including the creation and maintenance of reserves;

# (3)

The issuance of other or additional bonds payable from the revenues of such water systems;

# (4)

The operation and maintenance of such water systems;

# (5)

The insurance to be carried thereon and the use and disposition of insurance moneys;

# (6)

Books of account and the inspection and audit thereof;

# (7)

The terms and conditions upon which the holders of the bonds or any proportion of them, or any trustee therefor, shall be entitled to the appointment of a receiver by the appropriate court, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of the water systems, operate and maintain them, prescribe service charges therefor, and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the County itself might do.

# (b)

This chapter and any such resolution or resolutions shall be a contract with the holders of the bonds, and the duties of the County and of the county government and officers under this chapter, and any such resolutions shall be enforceable by any bondholder, by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction.

Amendment history

55 Del. Laws, c. 255; 56 Del. Laws, c. 103, § 12

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