§ 226-42. Appointment of receiver in case of default in payment on bonds.

(a)

The resolution authorizing the issuance of said bonds may provide that in the event of a default in the payment of the principal of or interest on any bonds issued pursuant to this act [article], or in the performance by the county of any duties imposed upon the county by this act [article], or by any covenants or agreements theretofore entered into between the county and the holders of such bonds (unless the resolution authorizing the issuance of such bonds shall limit the right to the appointment of a receiver to a specified number or percentage of bondholders), either acting for himself or themselves alone, or also acting for all other holders of such bonds, shall be entitled as of right to the appointment of a receiver for such waste collection and disposal system, including all parts thereof heretofore or hereafter constructed or acquired, by any court of competent jurisdiction of the State of Florida. Jurisdiction is hereby conferred upon the respective circuit courts of the State of Florida in any action or proceeding for the appointment of such a receiver, and such receiver is hereby authorized and empowered in the event of such default or defaults to take over, operate, manage and control such waste collection and disposal system and to collect the revenues derived from the use of the services and facilities thereof and from all other sources to the same extent and in the same manner as the county is authorized to do. Such receiver shall so operate, manage and control such waste collection and disposal system only under the supervision and direction of the circuit courts of the State of Florida, and such operation, management and control shall be in the name of Volusia County, Florida, and notwithstanding any provision of any other law to the contrary, such waste collection and disposal system shall be deemed in the county's control, and management through such court, and its duly appointed receiver, for the joint protection of the county and such bondholders. After deduction of the expenses of such receivership, such receiver shall apply the funds derived from such operation, management and control to:

(1)

The cost of operation and maintenance of such waste collection and disposal system.

(2)

The payment of amounts due for the principal of and interest on any bonds or other obligations heretofore issued by the county for such waste collection and disposal system in accordance with the rights of the holders of such bonds, and the payment into reserve or other funds of any amounts provided for in the covenants or agreements with the holders of such bonds, and thereafter to apply all such funds in such manner as the court shall direct. The fees and other expenses of such receiver and of the person or persons making application for the appointment thereof, and all other legal and incidental expenses in connection with such receivership, subject to court approval, shall be a first lien on the revenues of such waste collection and disposal system as long as they are in the control of such receiver. When all defaults of the county shall have been cured and made good, such receivership shall be terminated by an order of the court which appointed such receiver.

(b)

The provisions of this section are intended to, and shall be construed as, insuring the efficient and economical administration of such waste collection and disposal system, and the continuance and maintenance of such waste collection and disposal system as a county-owned waste collection and disposal system, and no holder of bonds or other obligations shall ever have the right to require the sale or other disposal of such waste collection and disposal system in such receivership proceedings.

(Laws of Fla. ch. 65-2357, § 12)