175B.070 Project revenue bonds may be secured by trust agreement -- Permissible

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

provisions.

(a)Any project revenue bonds issued under this chapter may be secured by a trust

agreement by and between the issuing authority and a corporate trustee, which

may be any trust company or bank having the powers of a trust company

within or without the Commonwealth. Subject to the restrictions established

in KRS 175B.060, the trust indenture or other document providing for the

issuance of the project revenue bonds may pledge or assign the tolls and other

revenues to be received, but shall not convey or mortgage any project or any

part of a project.

(b)The trust indenture or other document may contain any provisions for

protecting and enforcing the rights and remedies of the bondholders as are

reasonable and proper and not in violation of law, including covenants setting

forth the duties of the developing authority and the issuing authority in

relation to the acquisition of property and the construction, improvement,

maintenance, repair, operation, and insurance of the project for which the

project revenue bonds were authorized; the rates of toll or rentals to be

charged; and the custody, safeguarding, and application of all moneys.

(2)Any bank or trust company incorporated under the laws of the Commonwealth

which acts as depository of the proceeds of project revenue bonds or of revenues

may furnish indemnifying project revenue bonds or pledge securities as the issuing

authority requires. Any such trust indenture may set forth the rights and remedies of

the bondholders and of the trustee, and may restrict the individual right of action by

bondholders. Any trust indenture or proceedings may contain any other provisions

that the issuing authority deems reasonable and proper for the security of the

bondholders. All expenses incurred in carrying out the provisions of the trust

indenture or proceedings may be treated as a part of the cost of the operation of the

project.