68-20,101. Trust agreement or resolution providing for bond issue; contents; expense of. - Kansas Statutes

68-20,101

Chapter 68.--ROADS AND BRIDGES PART III.--MISCELLANEOUS Article 20.--TOLL ROADS OR TURNPIKES

      68-20,101.   Trust agreement or resolution providing for bond issue;contents; expense of.In the discretion of the authority the bonds issued under the provisionsof this act may be secured by a trust agreement by and between theauthority and a corporate trustee, which may be any trust company or bankhaving the powers of a trust company within or without the state. Suchtrust agreement or the resolution providing for the issuance of the bondsmay pledge or assign the tolls and other revenues to be received and anypayments to the authority from the state highway fund or state freeway fundprovided to be made pursuant to the provisions of this act and the act ofwhich this section is amendatory, but shall not convey or mortgage anyhighway project or any part thereof. Such trust agreement or resolutionproviding for the issuance of such bonds may contain such provisions forprotecting and enforcing the rights and remedies of the bondholders as maybe reasonable and proper and not in violation of law, including covenantssetting forth the duties of the authority in relation to the acquisition ofproperty and the construction, improvement, maintenance, repair, operationand insurance of any highway project, the rates of toll to be charged, andthe custody, safeguarding and application of all moneys. It shall be lawfulfor any bank or trust company incorporated under the laws of the statewhich may act as depository of the proceeds of bonds or revenues or othermoneys received by the authority to furnish such indemnifying bonds or topledge such securities as may be required by the authority. Any such trustagreements may set forth the rights and remedies of the bondholders and ofthe trustee, and may restrict the individual right of action bybondholders. In addition to the foregoing, any such trust agreement orresolution may contain such other provisions as the authority may deemreasonable and proper for the security of the bondholders. All expensesincurred in carrying out the provisions of such trust agreement orresolution may be treated as a part of the cost of the operation of highwayprojects.

      History:   L. 1973, ch. 269, § 9; L. 1974, ch. 275, § 8; L. 1974, ch. 276, § 7;April 8.