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224A.130 Trust indentures.
(1)
(2)
In the discretion of the authority, any revenue bonds or notes issued under the
provisions of this chapter 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 within or without the State of Kentucky. Such trust
indenture, or the resolution of the authority providing for the issuance of such
revenue bonds or notes, may pledge or assign for the security of such revenue bonds
or notes, all or any part of the totality of authority revenues received and to be
received. Such trust indenture or resolution of the authority may contain such
provisions for protecting and enforcing the rights and remedies of the bondholders
as may be reasonable and proper, and not in violation of law, including, inter alia,
covenants and provisions setting forth the duties of the authority in relation to the
purposes to which revenue bond and note proceeds may be applied; the disposition
or pledging of assets and authority revenues; and the custody, safeguarding, and
application of all authority revenues. It shall be lawful for any bank or trust
company incorporated under the laws of the state which may act as depository of
the proceeds of revenue bonds, notes or of authority revenues, to furnish such
indemnifying bonds, or to pledge such securities as may be required by such trust
indenture or resolution of the authority. Any such trust indenture or authority
resolution may set forth the rights and remedies of the bondholders and of the
trustee, and may restrict the individual right of action by bondholders, where a trust
indenture has been entered into. In addition to the foregoing, any such trust
indenture or authority resolution may contain such other provisions as the authority
may determine to be reasonable and proper for the further security of the holders of
any revenue bonds or notes. All expenses incurred in carrying out the provisions of
such trust indenture or bond proceedings may be treated as a part of the cost of
operating the authority, and may be paid from authority revenues pledged or
assigned to the payment of the principal of and the interest on revenue bonds or
notes, or from any other funds properly available to the authority.
Notwithstanding any other provision to the contrary, any such trust indenture or
authority resolution shall provide that, except to the extent the rights afforded to
bondholders by this section shall be enforceable and enforced by a trustee under a
trust indenture rather than by the bondholders, any holder of revenue bonds or notes
issued by the authority or any of the coupons appurtenant thereto, may, either at law
or in equity, by suit, action, mandamus, or other proceedings, protect and enforce
any and all rights generally arising under the laws of the state, or granted under this
chapter, or under such trust indenture, or by the resolution of the authority
authorizing the issuance of such revenue bonds or notes, and may specifically
enforce and compel by mandamus the performance of all duties required by this
chapter, or by such trust indenture, or such authority resolution, to be performed by
the authority or by any officer or employee thereof, including, inter alia, the prompt
and full enforcement of the terms and conditions of all assistance agreements, to
which the authority is a party.
Effective: July 15, 1994
History: Amended 1994 Ky. Acts ch. 373, sec. 11, effective July 15, 1994. -- Created
1972 Ky. Acts ch. 329, sec. 13.
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