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76.160 Enforcement of rights of bondholders -- Trustee -- Receiver.
(1)
(2)
(3)
Subsections (2) and (3) have no application to construction subdistrict bonds or
obligations. All references to revenues, rates, rentals, charges, or collections in
subsections (2) and (3) exclude those derived from or made on account of
construction subdistricts. District facilities referred to in subsections (2) and (3)
exclude construction subdistrict facilities.
In the event that the district shall default in the payment of principal of, or
interest on, any of the bonds issued pursuant to KRS 76.010 to 76.210 after
the said principal or interest shall become due, whether at maturity or upon call
for redemption, and such default shall continue for a period of thirty (30) days,
or in the event that the district shall fail or refuse to comply with the provisions
of KRS 76.010 to 76.210, or shall default in any agreement made with the
holders of the bonds, the holders of twenty percent (20%) in aggregate
principal amount of the bonds then outstanding, by instrument or instruments
filed in the office of the county clerk of the county embracing the district and
proved or acknowledged in the same manner as a deed to be recorded, may
apply to a judge of the Circuit Court of the county, to appoint a trustee to
represent all of the bondholders for the purposes herein provided. Upon such
application such judge shall appoint a trustee and such trustee may, and upon
written request of the holders of twenty percent (20%) in principal amount of
the bonds of the district then outstanding shall, in his or its own name, (a) by
mandamus or other suit, action or proceeding at law or in equity, enforce all
rights of the bondholders, including but not limited to the right to require the
district to collect rates, rentals, and other charges, adequate to carry out any
agreement as to, or pledge of, the revenues of the district, and to require the
district and its officers to carry out any other agreement with the bondholders
and to perform its and their duties under KRS 76.010 to 76.210; (b) bring suit
upon the bonds; (c) by action or suit in equity, require the district to account as
if it were the trustee of an express trust for the bondholders; (d) by action or
suit in equity, enjoin any acts or things which may be unlawful or in violation of
the rights of bondholders; (e) declare all bonds due and payable, and if all
defaults shall be made good then to annul such declarations and its
consequences.
Any such trustee, whether or not all bonds have been declared due and
payable, shall be entitled as of right, upon application to the judge in the
chancery branch, to the appointment of a receiver, who may enter upon and
take possession of the facilities of the district, or any part or parts thereof, and
operate and maintain the same, and collect and receive all rentals, rates, and
other charges, and other revenues, of the district, thereafter arising therefrom,
in the same manner as the district and its officers might do, and shall deposit
all such moneys in a separate account and apply the same in such manner as
such court shall direct. In any suit, action, or proceeding, by the trustee, the
fees, counsel fees, and expenses of the trustee and of the receiver, if any, shall
constitute disbursements taxable as costs. All costs and disbursements
allowed by the court shall be a first charge on any revenue derived from the
facilities of the district. Such trustee shall, in addition to the foregoing, have and
possess all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general representation
of the bondholders in the enforcement and protection of their rights.
History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 69. -- Amended
1964 Ky. Acts ch. 33, sec. 8. -- Created 1946 Ky. Acts ch. 104, sec. 14.
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