(A) The city shall have the power in connection with the issuance of revenue bonds or certificates to appoint a fiscal agent or consultant and provide the powers, duties, functions, and compensation of the fiscal agent or consultant. The city shall also have the power to provide a method for the resignation, removal, merger, or consolidation, and the appointment of a successor, and the transfer of rights and properties to the successor fiscal agent or consultant. (Special Acts, Ch. 57-1754, § 176) ('58 Code, § 45.114)
(B) In order that the payment of the revenue bonds or certificates, and interest thereon, shall be adequately secured, the city and its proper officers, agents, and employees are directed at all times to perform the following duties. It shall also be the mandatory duty of the city and its officers, agents, and employees and it shall be of the essence of the contract of the city with the bondholders, that at all times the following duties are performed.
(1) Pay or cause to be paid punctually the principal of every revenue bond or certificate, and the interest thereon, on the date, at the place, in the manner, and out of the funds mentioned in the revenue bonds or certificates and in the coupons thereto appertaining, and in accordance with the resolution authorizing their issuance.
(2) Operate the enterprise or enterprises in an efficient and economical manner, and establish, levy, maintain, and collect the fees, tolls, rentals, rates, and other charges in connection therewith as may be necessary or proper. These fees, tolls, rates, rentals, and other charges shall be at least sufficient, after making due and reasonable allowance for contingencies and for a margin of error in the estimates, to do the following.
(a) Pay all current expenses of operation and maintenance of the enterprises.
(b) Pay the interest on and principal of the revenue bonds or certificates as they shall become due and payable.
(c) Comply in all respects with the terms of the resolution authorizing the issuance of revenue bonds or certificates or any other contract or agreement with the holders of the revenue bonds or certificates.
(d) Meet any other obligations of the municipality which are charges, liens, or encumbrances on the revenues of the enterprise.
(3) Operate, maintain, preserve, and keep, or cause to be operated, maintained, preserve, and kept, the enterprise, and every part and parcel thereof, in good repair, working order, and condition.
(4) Preserve and protect the security of the revenue bonds or certificates and the rights of the holders thereof, and warrant and defend those rights against all claims and demands of all persons whomsoever.
(5) Pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials, and supplies, which, if unpaid might by law become a lien or charge upon the revenues or any part thereof, prior or superior to the lien of the revenue bonds or certificates, or which might impair the security of the revenue bonds or certificates, to the end that the priority and security of the revenue bonds or certificates shall be fully preserved and protected.
(6) Hold in trust the revenues pledged to the payment of the revenue bonds or certificates for the benefit of the holders of the revenue bonds or certificates, and apply the revenues only as provided by the resolution authorizing the issuance of the revenue bonds or certificates, or, if the resolution shall thereafter be modified, only as provided in the resolution as modified.
(7) Keep proper books of record and accounts of the enterprise, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the enterprise or any part thereof, and which, together with all other books and papers of the municipality, shall at all times be subject to the inspection of the holders of not less than 10% of the revenue bonds or certificates then outstanding or their representatives duly authorized in writing.
(Special Acts, Ch. 57-1754, § 177; Ch. 61-2711, § 5) ('58 Code, § 45.115)
Editor's note:
Sections 36.052 through 36.057 are composed of sections previously set out as sections 176 through 182 of the Charter. The transfer of these sections was at the specific request of the city, pursuant to the Municipal Home Rule Powers Act.