103.250 Lien of bondholders on building -- Receiver on default.

238 words·~1 min read·/ky/chapter-103/103-250

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

(1)A statutory mortgage lien shall exist upon the industrial building so acquired in

favor of the holders of the bonds and coupons. The industrial building so acquired

shall remain subject to the statutory mortgage lien until the payment in full of the

principal of the bonds, and all interest due thereon. Said statutory mortgage lien

shall be effective from and after the recording of a lease of the property, which has

been acquired by the issuer of the bonds, to the lessee corporation, and said lien

shall attach to all of the property described in said lease, including machinery,

equipment and appurtenances described therein in either general or specific terms.

No filing or recording or notice of said lien on property held or thereafter acquired

by the issuer from the proceeds of the bonds shall be required under the Uniform

Commercial Code.

(2)If there is any default in the payment of principal or interest of any bond, any court

having jurisdiction of the action may appoint a receiver to administer the industrial

building on behalf of the city or county, as the case may be, with power to charge

and collect rents sufficient to provide for the payment of any bonds or obligations

outstanding against the building, and for the payment of operating expenses, and to

apply the income and revenue in conformity with KRS 103.200 to 103.280 and the

ordinance referred to in KRS 103.210.