Wash. Rev. Code » Title 54 · Chapter 54.24
Revised Code of Washington

Wash. Rev. Code § 54.24.050 (2026)

Covenants to secure owners of revenue obligations

✓ current as of May 2026
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Any resolution creating any such special fund or authorizing the issue of revenue obligations payable therefrom, or by such alternate method of payment as may be provided therein, shall specify the title of such revenue obligations as determined by the commission and may contain covenants by the district to protect and safeguard the security and the rights of the owners thereof, including covenants as to, among other things:
(1) The purpose or purposes to which the proceeds of sale of such obligations may be applied and the use and disposition thereof;
(2) The use and disposition of the gross revenues of the public utility, and any additions or betterments thereto or extensions thereof, the cost of which is to be defrayed with such proceeds, including the creation and maintenance of funds for working capital to be used in the operation of the public utility and for renewals and replacements to the public utility;
(3) The amount, if any, of additional revenue obligations payable from such fund which may be issued and the terms and conditions on which such additional revenue obligations may be issued;
(4) The establishment and maintenance of adequate rates and charges for electric energy, water, and other services, facilities, and commodities sold, furnished, or supplied by the public utility;
(5) The operation, maintenance, management, accounting, and auditing of the public utility;
(6) The terms and prices upon which such revenue obligations or any of them may be redeemed at the election of the district;
(7) Limitations upon the right to dispose of such public utility or any part thereof without providing for the payment of the outstanding revenue obligations; and
(8) The appointment of trustees, depositaries, and paying agents to receive, hold, disburse, invest, and reinvest all or any part of the income, revenues, receipts, and profits derived by the district from the operation, ownership, and management of its public utility.
[ 1983 c 167 s 149; 1959 c 218 s 6; 1945 c 143 s 2; 1941 c 182 s 3; Rem. Supp. 1945 s 11611-3.]

Notes:

Liberal construction—Severability—1983 c 167: See RCW 39.46.010 and note following.
Notes of Decisions
Cited in 2 cases, 1978–1990 · leading case: Snohomish Cnty. Pub. Util. Dist. No. 1 v. Broadview Television Co., 586 P.2d 851 (Wash. 1978).
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Snohomish Cnty. Pub. Util. Dist. No. 1 v. Broadview Television Co., 586 P.2d 851 (Wash. 1978). “In RCW 54.24.050, it is provided that, in creating a special fund pledged as security for the repayment of bondholders, a resolution of the district may contain various covenants, among which is a covenant to establish and maintain adequate rates and charges.”
Am. Air Filter Co. v. Washington Pub. Power Supply Sys., 792 P.2d 1275 (Wash. Ct. App. 1990). “040; RCW 54.24.050. Once a special fund is created, it generally may not be used for any other purpose and the claims payable out of a special fund usually are not payable from any other fund.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.