175B.070 Project revenue bonds may be secured by trust agreement -- Permissible provisions. - Kentucky Statutes

Download pdf

Loading PDF...

Page 1 of 1 175B.070 Project revenue bonds may be secured by trust agreement -- Permissible provisions. (1) (a) Any project revenue bonds issued under this chapter may be secured by a trust agreement by and between the issuing authority and a corporate trustee, which
may be any trust company or bank having the powers of a trust company
within or without the Commonwealth. Subject to the restrictions established
in KRS 175B.060, the trust indenture or other document providing for the
issuance of the project revenue bonds may pledge or assign the tolls and other
revenues to be received, but shall not convey or mortgage any project or any
part of a project. (b) The trust indenture or other document may contain any 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 developing authority and the issuing authority in
relation to the acquisition of property and the construction, improvement,
maintenance, repair, operation, and insurance of the project for which the
project revenue bonds were authorized; the rates of toll or rentals to be
charged; and the custody, safeguarding, and application of all moneys. (2) Any bank or trust company incorporated under the laws of the Commonwealth which acts as depository of the proceeds of project revenue bonds or of revenues
may furnish indemnifying project revenue bonds or pledge securities as the issuing
authority requires. Any such trust indenture may set forth the rights and remedies of
the bondholders and of the trustee, and may restrict the individual right of action by
bondholders. Any trust indenture or proceedings may contain any other provisions
that the issuing authority deems reasonable and proper for the security of the
bondholders. All expenses incurred in carrying out the provisions of the trust
indenture or proceedings may be treated as a part of the cost of the operation of the
project. Effective: June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 88, effective June 26, 2009.