Upon the sale and issuance of any utility bonds to the bank by any public utility, such public utility shall be held and be deemed to have agreed that, in the event of the failure of such public utility to pay the interest on or the principal of any of such utility bonds owned or held by the bank as and when due and payable, such public utility shall have waived all and any defenses to nonpayment, the bank shall thereupon constitute a holder or owner of such utility bonds as being in default, and that, notwithstanding the provisions of any other law as to time or duration of default or percentage of holders or owners of bonds entitled to exercise rights of such holders or owners of bonds in default, or to invoke any remedies or powers thereof or of any trustee in connection therewith or of any board, body, agency or commission of the state having jurisdiction in such matter or circumstance, the bank may then and thereupon avail itself of all other remedies, rights and provisions of law applicable in such circumstance, and that the failure to exercise or exert any such rights or remedies within any time or period provided by law shall not be raised as a defense by such public utility, and that all of the bonds of the issue of bonds of such public utility as to which there has been such nonpayment shall for all of the purposes of this section be held and be deemed to have become due and payable and to be unpaid. The bank is hereby authorized and empowered to carry out the provisions of this section and to exercise all of the rights and remedies and provisions of law herein provided or referred to.