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198A.100 Trust agreement to secure corporate obligations -- Operation
thereof.
In the discretion of the corporation any obligations issued under the provisions of this
chapter may be secured by a trust agreement by and between the corporation and a
corporate trustee, which may be any trust company or bank having the powers of a
trust company within or without the state. Such trust agreement or the resolution
providing for the issuance of such obligations may pledge or assign all or any part of
the revenues or assets of the corporation, including, without limitation, mortgage
loans, mortgage loan commitments, construction loans, temporary loans, contracts,
agreements and other security or investment obligations, the fees or charges made
or received by the corporation, the moneys received in payment of loans and interest
thereon, and any other moneys received or to be received by the corporation. Such
trust agreement or resolution may contain such provisions for protecting and
enforcing the rights and remedies of the holders of any such obligations as may be
reasonable and proper and not in violation of law, including covenants setting forth
the duties of the corporation in relation to the purposes to which obligation proceeds
may be applied, the disposition or pledging of the revenues or assets of the
corporation, the terms and conditions for the issuance of additional obligations, and
the custody, safeguarding and application of all moneys. 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 obligations, revenues or other money hereunder to
furnish such indemnifying bonds or to pledge such securities as may be required by
the corporation. Any such trust agreement or resolution may set forth the rights and
remedies of the holders of any obligations and of the trustee, and may restrict the
individual right of action by any such holders. In addition to the foregoing, any such
trust agreement or resolution may contain such other provisions as the corporation
may deem reasonable and proper for the security of the holders of any obligations.
All expenses incurred in carrying out the provisions of such trust agreement or
resolution may be paid from the revenues or assets pledged or assigned to the
payment of the principal of and the interest on obligations or from any other funds
available to the corporation.
History: Created 1972 Ky. Acts ch. 70, sec. 11.
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