17-5-1647. Powers and duties of trustee on default. (1) A trustee appointed under 17-5-1646 may:
(a) by civil action enforce all rights of the noteholders or bondholders, including the right to require the board or eligible government unit to collect rates, charges, and other fees and to collect interest and amortization payments on bonds and notes held by them adequate to carry out a pledge of or an agreement as to the rates, charges, and other fees and of the interest and amortization payments and the right to require the board or eligible government unit to carry out any other agreements with the holders of the notes or bonds and to perform their duties under this part;
(b) bring a civil action upon the notes or bonds;
(c) by civil action require the board or eligible government unit to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(d) by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds;
(e) declare all the notes or bonds due and payable and, if all defaults are made good, then, with the consent of the holders of 25% of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences.
(2) The trustee, in addition to the powers stated in subsection (1), has all the powers necessary for the exercise of functions specifically set out or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(3) Before declaring the principal of notes or bonds due and payable, the trustee shall give 30 days' notice in writing to the governor, the attorney general, and the board or eligible government unit defaulting.
History: En. Sec. 29, Ch. 620, L. 1983; amd. Sec. 12, Ch. 208, L. 1995.
Structure Montana Code Annotated
Part 16. Municipal Finance Consolidation Act
17-5-1603. Liberal construction
17-5-1605. Board of investments to implement
17-5-1606. Bonds, bond anticipation notes, and notes of the board
17-5-1607. Participation voluntary
17-5-1608. Limitations on amounts
17-5-1609. Purchase of anticipation notes
17-5-1610. Refunding obligations
17-5-1611. Additional powers of the board
17-5-1612. Specific loan authorization
17-5-1613. through 17-5-1620 reserved
17-5-1621. Provisions of bond resolutions
17-5-1623. Nonimpairment by state
17-5-1625. Presumption of validity
17-5-1626. Signatures of board members
17-5-1627. Negotiability of bonds or notes
17-5-1628. Bonds or notes as legal investments
17-5-1629. Tax exemption of bonds
17-5-1631. Additional funds and accounts
17-5-1632. through 17-5-1640 reserved
17-5-1642. Credit of state not pledged
17-5-1643. Sale or exchange of securities
17-5-1644. Care and custody of bonds purchased by the board
17-5-1645. Insurance or guaranty
17-5-1647. Powers and duties of trustee on default