(a) On default or threatened default in the payment of principal of or interest on district bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of outstanding bonds, appoint a receiver for the district.
(b) The receiver may:
(1) collect and receive all district income except taxes;
(2) employ and discharge district agents and employees;
(3) take charge of money on hand, except money received from taxes, unless commingled; and
(4) manage the district's proprietary affairs without the consent of or hindrance by the board.
(c) The receiver may be authorized to sell or contract for the sale of water or other services provided by the district or to renew those contracts with the approval of the court that appointed the receiver.
(d) The court may vest the receiver with any other power or duty the court finds necessary to protect the bondholders.