14-1224. Revenue bonds; trust agreements; terms; conditions.

396 words·~2 min read·/ne/chapter-14/14-1224

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

(1)The city council of a city of the metropolitan class may enter into an agreement with any competent bank or trust company as trustee for the holders of bonds issued pursuant to sections 14-1201 to 14-1224 , setting forth the duties of the city and the bridge commission in respect to the construction, maintenance, operation, and insurance on all funds, the insurance of money on hand or on deposit and the rights and remedies of such trustee and the holders of such bonds, and restricting the individual right of action of bondholders as is customary in trust agreements respecting bonds of corporations.

(2)Such trust agreement may:

(a)Contain such provisions for protecting and enforcing the rights and remedies of the trustee and approval by the original bond purchasers of the appointment of consulting engineers and of the security given by the bridge contractors and by any bank or trust company in which the proceeds of bonds or bridge tolls or other money of the bridge commission shall be deposited, and may provide that no contract for construction shall be made without the approval of the consulting engineers;

(b)Contain provisions and covenants that all or any deposited money shall be secured, as may be provided in such agreement, by surety company bonds or otherwise, and that investments of any or all money shall be prohibited, except as provided in such agreement, or shall be regulated as provided in such agreement, and that insurance upon the bridge and all property connected with such bridge, also use and occupancy insurance, shall be carried to the extent and under the conditions provided in such agreement; and

(c)Include a covenant that until the revenue bonds secured by such agreement and the interest on such bonds have been paid, the city will charge and collect for transit over any or all other bridges, then or thereafter owned by such city, rates of tolls which may be fixed in such covenant or may be based upon principles and premises set forth in such covenant. The tolls collected pursuant to such covenant shall be applied as provided in section 14-1226 , or for the acquisition or construction or the maintenance and operation, in whole or in part, of any bridge or bridges now owned or hereafter acquired or constructed by such city or as may be otherwise provided by law.