§ 2-305. Permitted covenants with bondholders.

(a)

Any resolution authorizing the issuance of bonds under this division may contain any covenants with bondholders deemed necessary by the council to make the bonds secure and marketable, including but without limitation covenants regarding the application, securing and continuation of county revenues; the creation and maintenance of reserves; the investment of funds; the issuance of additional bonds; insurance and application of insurance proceeds; accounts and audits; the sale of county properties; remedies of bondholders; the vesting in a trustee of such powers and rights as may be necessary to secure the bonds and the revenues and funds from which they are payable; the terms and conditions upon which bondholders may exercise their rights and remedies; the replacement of lost, stolen, destroyed or mutilated bonds; the definition, consequences and remedies of an event of default; the amendment of such resolution; and the appointment of a receiver in the event of default.

(b)

The county recognizes the right of any holder of the bonds, including any trustee for any bondholders, to enforce his or their rights against the county, its council or any officer, agent or employee thereof by mandamus, injunction or other action in any court of competent jurisdiction, subject to the covenants included in the bond resolution.

(c)

All sums received as accrued interest from the sale of any bonds shall be applied to the payment of interest on the bonds. All sums received as principal or premium from such sale shall be applied to the purpose for which the bonds were issued.

(d)

Bonds issued pursuant to this division executed by officers in office on the date of such execution shall be valid obligations of the county notwithstanding that before the delivery thereof any or all of the persons executing the same shall have ceased to be such officers.

(Ord. No. 81-6, § 5, 3-5-81)