Download as PDF
175B.070 Project revenue bonds may be secured by trust agreement -Permissible provisions.
(1)
(2)
(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.
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.