2014 Kentucky Revised Statutes
CHAPTER 82 - GENERAL PROVISIONS APPLICABLE TO CITIES
82.160 Security for revenue bonds through trust indenture.
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<![CDATA[82.160 Security for revenue bonds through trust indenture.
In the discretion of the city any bonds issued under the provisions of KRS 82.140 to
82.165 may be secured by a trust indenture by and between the city 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 indenture or the
proceedings providing for the issuance of such bonds may pledge or assign the
revenues to be received; but shall not convey or mortgage any project or any part
thereof, except in the case of bonds issued through the agency and instrumentality
of a nonprofit corporation organized under the general corporation laws of the
Commonwealth, in which case there may be a conveyance or mortgage if such
corporation be thereunto authorized by the governing body of the city. Such trust
indenture or proceedings 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 city in
relation to the acquisition of property and the construction, improvement,
maintenance, repair, operation and insurance of the project or projects in connection
with which such bonds shall have been authorized, the rates of the rentals to be
charged, and the custody, safeguarding and application of all moneys, if such
covenants shall be appropriate to the issue. 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 city. 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. In addition to
the foregoing, any such trust indenture or proceedings may contain such other
provisions as the city may deem reasonable and proper for the security of the
bondholders. All expenses incurred in carrying out the provisions of such trust
indenture or proceedings may be treated as a part of the cost of the project or
projects.
History: Created 1962 Ky. Acts ch. 178, sec. 5(6).
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