South Dakota Codified Laws
Chapter 40 - Utility Facilities And Revenue Bonds
Section 9-40-25 - Bondholders' statutory mortgage on utility--Disposition of utility prohibited until bonds retired.

9-40-25. Bondholders' statutory mortgage on utility--Disposition of utility prohibited until bonds retired.
There shall be a statutory mortgage lien upon such utility and the extensions, additions, and improvements thereto acquired pursuant to this chapter, in favor of and for the equal benefit of the lawful holders of bonds issued pursuant to this chapter and interest coupons and each of them, but no such lien shall attach to or become a charge upon or against any property or utility or any part thereof previously owned by such municipality by whatever means or funds acquired. Until all such bonds are fully paid with interest, the municipality shall not sell or otherwise dispose of said utility and shall not establish, authorize, or grant a franchise for the operation of any other utility for supplying like products or services in competition therewith.

Source: SL 1931, ch 194, §6; SDC 1939, §45.2406; SL 1949, ch 191, §3.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 9 - Municipal Government

Chapter 40 - Utility Facilities And Revenue Bonds

Section 9-40-1 - Municipal power to acquire and operate utility systems--Types of services provided--Limits of service area.

Section 9-40-2 - Systems defined as utilities.

Section 9-40-3 - Combining of systems and services into single utility system.

Section 9-40-4 - Utility facilities outside municipal limits.

Section 9-40-4.1 - Water pollution prevention contracts.

Section 9-40-4.2 - Financial aid for sewerage and water facility systems--Federal contracts.

Section 9-40-4.3 - Contracts and creation of body for operation of sewerage and water facility systems.

Section 9-40-5 - Bond issue for erection or acquisition of utility--Credit of municipality not used--Authorization--Issuance--Sale.

Section 9-40-6 - Revenue bond issue for extension or improvement of utility.

Section 9-40-7 - Additional revenue bonds authorized when original issue insufficient--Priority of issues.

Section 9-40-8 - Provision for additional bond issues of equal standing.

Section 9-40-9 - Provision for extension or improvement of utility by additional bond issue--Junior to prior issues.

Section 9-40-10 - Resolution or ordinance to refer to chapter--Purchase price for utility to be specified.

Section 9-40-11 - Ordinance provisions for utility operation and security of bondholders.

Section 9-40-15 - Bonds payable from revenue--Circumstances not requiring election.

Section 9-40-15.1 - Collection of charges for sewerage, water services, and drainage basin utility districts--Amount and basis of charges--Surcharge on water bills.

Section 9-40-16 - Pledge of revenue to separate fund--Separate account for bond payments and reserve--Depreciation account and operational costs.

Section 9-40-17 - Revenue pledged to payment of extension and improvement bonds--Prior pledge for original bond issue.

Section 9-40-18 - Taxing power not used for payment of revenue bonds--Restriction on use of other municipal funds.

Section 9-40-19 - Chapter and resolution or ordinance incorporated in terms of bonds.

Section 9-40-21 - Separate or combined acquisition of utilities--Purchase price.

Section 9-40-22 - Payment of purchase price by issuance of bonds.

Section 9-40-23 - Bonds set apart for payment of underlying debt--Income set aside for debt retirement.

Section 9-40-24 - Exchange of bonds for underlying debt--Application of proceeds to debt.

Section 9-40-25 - Bondholders' statutory mortgage on utility--Disposition of utility prohibited until bonds retired.

Section 9-40-26 - Statutory lien continued until bonds paid.

Section 9-40-27 - Enforcement by bondholders of statutory mortgage and requirements of chapter.

Section 9-40-28 - Rates to cover bond retirement and operational costs.

Section 9-40-29 - Municipality to pay for services rendered by utility.

Section 9-40-31 - Expenditures from depreciation account--Investment of accumulations.

Section 9-40-32 - Surplus applied to other municipal or public purposes.

Section 9-40-33 - Receivership on default or mismanagement--Powers of receiver.

Section 9-40-34 - Judicial approval of rates charged during receivership--Criteria for establishment of rates.

Section 9-40-35 - Termination of receivership and restoration of municipal control.

Section 9-40-37 - Sale and lease-back arrangements for waterworks and waste disposal facilities.

Section 9-40-38 - Sale of waterworks and waste disposal facilities--Conditions.

Section 9-40-39 - Tax exemption of waterworks and waste disposal facilities.

Section 9-40-40 - Sale and lease-back powers additional--Restrictions.

Section 9-40-41 - Drainage utility fund--Fees.