436

410

(g) an order or decree shall be entered, with the consent or acquiescence of the Board, appointing a receiver or receivers of the Dormitory System or of any part thereof, or of the Revenue thereof, or if such order or decree, having been entered without the consent or acquiescence of the Board, shall not be vacated or discharged or stayed on appeal within sixty (60) days after the entry thereof; or

(h) any proceeding shall be instituted, with the consent or acquiescence of the Board, for the purpose of effecting a composition between the Board and its creditors or for the purpose of adjusting the claims of such creditors, pursuant to any federal or state statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of Revenues; or

(i) the Board shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the bonds or in this Resolution on the part of the Board to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and lequiring same to be remedied shall have been given to the Board by any bondholder.

Section 803. Upon the happening and continuance of any event of default specified in Section 802 of this Article, then and in every such case any bondholder may proceed, subject to the provisions of Section 805 of this Resolution, to protect and enforce the rights of the bondholders under this Resolution by such suits, actions or special proceedings in equity or at law, either for the specific performance of any covenants or agreement contained herein or in aid or execution of any power herein granted or for the enforcement of any proper legal or equitable remedy, as such bondholder shall deem most effectual to protect and enforce the rights afores aid.

Section 804. Anything in this Resolution to the contrary notwithstanding, if at any time the moneys in the Dormitory System Bond and Interest Sinking Fund Account of 1963 available for such purpose shall not be sufficient to pay the interest on or the principal of the bonds as the same become due and payable, all moneys in the Dormitory System Bond and Interest Sinking Fund Account of 1963, together with any moneys then available or thereafter becoming available for such purpose, whether through the exercise of the remedies in this Article provided for or otherwise, shall be applied as follows:

(a) Unless the principal of all the bonds shall have become due and payable, all such moneys shall be applied

first: to the payment to the persons entitled thereto of all instalments of interest then due, in the order of the maturity of the instalments of such interest, and if the amount available shall not be sufficient to pay in full any particular instalment, then to the payment ratably, according to the amounts due on such instalment, to the persons entitled thereto, without any discrimination or preference except as to any difference in the respective rates of interest specified in the bonds;

second: to the payment to the persons entitled thereto of the unpaid principal of any of the bonds which shall have become due (other than bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Resolution), in the order of their due dates, with interest on such bonds from the respective dates upon which they became due, and, if the amount available shall not be sufficient to pay in full bonds due on any particular date, together with such interest, then to the pay ent ratably, according to the amount of principal due on such date, to the persons entitled thereto without any discrimination or preference; and

third: to the payment of the interest on and the principal of the bonds, to the purchase and retirement of bonds and to the redemption of bonds, all in accordance with the provisions of Article V of this Resolution.