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177.460 Trust agreement to secure bonds -- Rights and remedies of
bondholders.
In the discretion of the department, any bonds issued under the provisions of KRS
177.390 to 177.570 may be secured by a trust agreement by and between the
department and a corporate trustee, which may be any trust company or bank
having the powers of a trust company within or without the Commonwealth. Such
trust agreement or the proceedings providing for the issuance of such bonds may
pledge or assign the tolls and other revenues to be received, but shall not convey or
mortgage any turnpike project or any part thereof. Such trust agreement or
proceedings providing for the issuance of such bonds 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 covenants setting forth
the duties of the department in relation to the acquisition of property and the
construction, improvement, maintenance, repair, operation and insurance of the
turnpike project or projects in connection with which such bonds shall have been
authorized, the rates of toll to be charged, 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 Commonwealth 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 department. Any such trust
agreement may set forth the rights and remedies of the bondholders and of the
trustee, and may restrict the individual right of action by bondholders. In addition to
the foregoing, any such trust agreement or proceedings may contain such other
provisions as the department may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions of such trust
agreement or proceedings may be treated as a part of the cost of the operation of
the turnpike project or projects.
History: Created 1950 Ky. Acts ch. 157, sec. 9.
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