184.373 Trust agreements -- Conditions.

310 words·~1 min read·/ky/chapter-184/184-373

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

(1)In the discretion of the board of trustees of a transportation improvement district,

any bonds may be secured by a trust agreement between the board and a corporate

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

company within or without the state but authorized to exercise trust powers within

this state.

(2)Any trust agreement may pledge or assign the revenues to be received, but shall not

convey or mortgage any project or any part thereof. Any trust agreement or other

bond proceedings may contain 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 board in relation to the

acquisition of property, the construction, maintenance, and repair of the project or

projects in connection with which the bonds are authorized and the custody,

safeguarding, application of all moneys, and provisions for the employment or

retention of the services of consulting engineers in connection with the construction,

maintenance, or repair of the project or projects. Any bank or trust company

incorporated under the laws of this state which may act as depository of the

proceeds of bonds or of revenues may furnish such indemnifying bonds or may

pledge such securities as are required by the board. Any such trust agreement may

set forth the rights and remedies of the bondholders and of the trustee, may restrict

the individual right of action by bondholders as is customary in revenue bond trust

agreements of public bodies, and may contain other provisions as the board

considers reasonable and proper for the security of the bondholders. All expenses

incurred in entering into or carrying out the provisions of any trust agreement may

be treated as a part of the cost of the project or projects.