Texas § UT.34.0108 - RECEIVERSHIP OF DEFAULT GENERATING FACILITY

§ UT.34.0108. RECEIVERSHIP OF DEFAULT GENERATING FACILITY

RECEIVERSHIP OF DEFAULT GENERATING FACILITY. (a) In this section, "default" means: (1) default in payment of the principal of or interest on a loan; or (2) a failure to perform any of the terms of a loan. (b) The state, including the commission, the advisory committee, and the trust company, may not retain an ownership interest in a project or facility for which a loan is provided under this chapter. (c) In the event of a default on a loan made under this chapter, at the request of the commission, the attorney general shall bring suit in a district court in Travis County for the appointment of a receiver to collect the assets and carry on the business of a loan recipient if the action is necessary to cure a default by the recipient. (d) The court shall vest a receiver appointed by the court with any power or duty the court finds necessary to cure the default, including the power or duty to: (1) perform audits; (2) direct ongoing operation of the assets; (3) fund reserve accounts; (4) make payments of the principal of or interest on bonds, securities, or other obligations; and (5) take any other action necessary to prevent or to remedy the default, including the sale of assets. (e) The receiver shall execute a bond in an amount to be set by the court to ensure the proper performance of the receiver's duties. (f) After appointment and execution of bond, the receiver shall take possession of the books, records, accounts, and assets of the defaulting loan recipient specified by the court. Until discharged by the court, the receiver shall perform the duties that the court directs and shall strictly observe the final order involved. (g) On a showing of good cause by the defaulting loan recipient, the court may dissolve the receivership. Added by Acts 2023, 88th Leg., R.S., Ch. 465 (S.B. 2627 ), Sec. 2, eff. November 7, 2023.