§ 9511.6. Trust indenture, protection of holders of obligations and depositories.

297 words·~1 min read·/pa/title-75/chapter-95/9511-6

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

(a)Indenture.-- In the discretion of the commission, a bond, note or other obligation may be secured by a trust indenture by and between the commission and a corporate trustee, which may be any trust company or bank having the powers of a trust company, within or without this Commonwealth.

(b)Pledge or assignment.-- A trust indenture under subsection

(a)may pledge or assign the pledged revenues but shall not convey or mortgage the turnpike or any part of the turnpike.

(c)Rights and remedies.-- The resolution providing for the issuance of the bond, note or other obligation of the trust indenture may contain provisions for protecting and enforcing the rights and remedies of the bondholders or holders of notes or other obligations as may be reasonable and proper and not in violation of law.

(d)Depository.-- It shall be lawful for any bank or trust company incorporated under the laws of this Commonwealth to act as depository of the proceeds of the bond, note or other obligation or revenue, to furnish indemnity bonds or to pledge securities as may be required by the commission.

(e)Indenture.-- The trust indenture may set forth the rights and remedies of the bondholders or holders of notes or other obligations and of the trustee and may restrict the individual right of action of bondholders or holders of notes or other obligations as is customary in trust indentures securing bonds, debentures of corporations, notes or other obligations. The trust indenture may contain other provisions as the commission may deem reasonable and proper for the security of bondholders or holders of notes or other obligations.

75c9511.6v

(July 18, 2007, P.L.169, No.44, eff. imd.)

2007 Amendment. Act 44 added section 9511.6.

75c9511.7s