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216.817 Bonds may be secured by trust indenture.
In the discretion of the authority, any bonds issued under the provisions of KRS
216.800 to 216.853 may be secured by a trust indenture by and between the
authority and a corporate trustee, which may be any trust company or bank having
the powers of a trust company in or outside of Kentucky. Such trust indenture or the
proceedings providing for the issuance of such bonds may pledge or assign the
rents and other revenues to be received. The trust indenture or proceedings may
contain provisions for protecting and enforcing the rights and remedies of the
bondholders which are reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority in relation to the acquisition of
property and the construction, improvement, maintenance, repair, operation, and
insurance of the project or projects in connection with which such bonds are
authorized, the rates or rental charges, and the custody, safeguarding and
application of all moneys. It is lawful for any bank or trust company which may act as
depository of the proceeds of bonds or of revenues to furnish such indemnifying
bonds or to pledge such securities as may be required by the rights and remedies of
the bondholders and of the trustee, and may restrict the individual right of action by
bondholders. In addition, any such trust indenture or proceedings may contain such
other provisions as the authority may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions of such trust
indenture or proceedings may be treated as a part of the cost of the operation of the
project or projects.
Effective:June 13, 1968
History: Created 1968 Ky. Acts ch. 132, sec. 8, effective June 13, 1968.
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