Section 31-35-407 - Covenants in bond ordinance(1) Any ordinance or resolution authorizing the issuance of bonds under this part 4 or trust indenture or other instrument appertaining thereto to finance in whole or in part the acquisition, construction, reconstruction, improvement, betterment, or extension of water facilities or sewerage facilities or both may contain covenants as to: (a) The rates, fees, tolls, or charges or combination thereof to be charged for the services, facilities, and commodities of said water facilities or sewerage facilities or both, and the use and disposition thereof, including but not limited to the foreclosure of liens for and collection of delinquencies; the discontinuance of services, facilities, or commodities or use of any water system, any sewer system, or any joint system; prohibition against free service; the collection of penalties and collection costs, including disconnection and reconnection fees; and the use and disposition of any revenues of the municipality derived or to be derived from any water facilities or sewerage facilities or both;(b) The creation and maintenance of reserves or sinking funds and the regulation, use, and disposition thereof to secure the payment of the principal of and interest on any bonds or of operation and maintenance expenses of any water system, sewer system, or joint system or part thereof; the determination or definition of revenues from any water system, sewer system, or joint system and of the expenses of operation and maintenance of such system; and the source, custody, security, use, and disposition of any such reserves or sinking funds, including but not limited to the powers and duties of any trustee with regard thereto;(c) A fair and reasonable payment by the municipality to the account of said water facilities or sewerage facilities or both for the services, commodities, or facilities furnished said municipality or any of its departments by said water facilities or sewerage facilities or both;(d) The issuance of other or additional bonds or instruments payable from or constituting a charge against the revenue of such water facilities or sewerage facilities or both; the payment of the principal of and interest on any bonds and the sources and methods thereof, the rank or priority of any bonds as to any lien or security for payment, or the acceleration of any maturity of any bonds, or the issuance of other or additional bonds payable from or constituting a charge against or lien upon any revenues pledged for the payment of bonds and the creation of future liens and encumbrances thereagainst and limitations thereon; and the purpose to which the proceeds of the sale of bonds may be applied and the custody, security, use, expenditure, application, and disposition thereof;(e) Books of account, the inspection and audit thereof, and other records appertaining to a water system, sewer system, or joint system; the insurance to be carried by the municipality and use and disposition of insurance moneys; the acquisition of completion or surety bonds appertaining to any project, funds, or personnel and the use and disposition of any proceeds of such bonds; the assumption or payment or discharge of any indebtedness, other obligation, lien, or other claim relating to any part of a water system, sewer system, or joint system, or any securities having or which may have a lien on any part of any revenues of such system; and limitations on the powers of the municipality to acquire or operate or permit the acquisition or operation of any plants, structures, facilities, or properties which may compete or tend to compete with the water system, sewer system, or joint system;(f) The rights, liabilities, powers, and duties arising upon the breach by the municipality of any covenants, conditions, or obligations; defining events of default; the payment of costs or expenses incident to the enforcement of the bonds or of the provisions of the ordinance or resolution authorizing the bonds or any trust indenture or other instrument appertaining thereto or of any covenant or contract with the holders of the bonds; the procedure, if any, by which the terms of any covenant or contract with or duty to the holders of bonds, the bond ordinance or resolution, or any trust indenture or other instrument may be amended or abrogated, the amount of bonds the holders of which, or any trustee, must consent to, and the manner in which such consent may be given or evidenced; and the terms and conditions upon which any or all of the bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;(g) The terms and conditions upon which the holders of the bonds or any portion or percentage of them may enforce any covenants or provisions made under this part 4 or duties imposed thereby; and(h) All such acts and things as may be necessary or convenient or desirable in order to secure its bonds or, in the discretion of the governing body of the municipality, tend to make the bonds more marketable, notwithstanding that such covenant, act, or thing may not be enumerated in this part 4, it being the intention of this part 4 to give a municipality power to do all things in the issuance of bonds and for their security consistent with continued public ownership of the sewerage facilities or water facilities or both.L. 75: Entire title R&RE, p. 1256, § 1, effective July 1.This section is similar to former § 31-35-407 as it existed prior to 1975.