9-40-33. Receivership on default or mismanagement--Powers of receiver.
If there be any default in the payment of the principal or interest of any bonds issued pursuant to this chapter, or in any other condition thereof materially affecting the rights of any bondholder, and such default shall continue for a period of not less than three months, or if said utility affected by said bonds or subject to the payment thereof be mismanaged by the municipal authorities in charge thereof, or if the revenues from such utility be dissipated, wasted, or be diverted from their proper application to the payment of said bonds and to the operation, maintenance, and upkeep of said utility, then any court having jurisdiction of the action, in a proper suit commenced by either a resident taxpayer of said municipality whose rights may have been or may be affected, injured, or lost thereby, or commenced by any bondholder similarly affected by any such default, may appoint a receiver to operate and administer such utility subject to the payment thereof or subject to the lien declared in §9-40-25, with power on the part of such receiver to charge and collect rates reasonably sufficient to provide for the payment of any bonds or obligations subsisting against such utility, and for the payment of the maintenance and operating expenses, including the expenses of administration, and to apply the net income and revenue in conformity with this chapter and the ordinance referred to therein.
Source: SL 1931, ch 194, §8; SDC 1939, §45.2408.
Structure South Dakota Codified Laws
Title 9 - Municipal Government
Chapter 40 - Utility Facilities And Revenue Bonds
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 9-40-6 - Revenue bond issue for extension or improvement of utility.
Section 9-40-8 - Provision for additional bond issues of equal standing.
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 9-40-19 - 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 9-40-24 - Exchange of bonds for underlying debt--Application of proceeds to debt.
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 9-40-35 - 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.