68-2010. Trust agreement or resolution providing for bond issues; contents; expenses of.
68-2010
68-2010. Trust agreement or resolution providing for bond issues;contents; expenses of.In the discretion of the authority any bonds issued under the provisionsof this act may be secured by a trust agreement by and between theauthority and a corporate trustee, which may be any trust company or bankhaving the powers of a trust company within or without the state. Suchtrust agreement or the resolution providing for the issuance of such bondsmay pledge or assign the tolls and other revenues to be received, but shallnot convey or mortgage any turnpike project or any part thereof. Such trustagreement or resolution providing for the issuance of such bonds maycontain such provisions for protecting and enforcing the rights andremedies of the bondholders as may be reasonable and proper and not inviolation of law, including covenants setting forth the duties of theauthority in relation to the acquisition of property and the construction,improvement, maintenance, repair, operation and insurance of the turnpikeproject or projects in connection with which such bonds shall have beenauthorized, the rates of toll to be charged, and the custody, safeguardingand application of all moneys.
It shall be lawful for any bank or trust company incorporated under thelaws of the state which may act as depository of the proceeds of bonds orof revenues to furnish such indemnifying bonds or to pledge such securitiesas may be required by the authority. Any such trust agreement may set forththe rights and remedies of the bondholders and of the trustee, and mayrestrict the individual right of action by bondholders. In addition to theforegoing, any such trust agreement or resolution may contain such otherprovisions as the authority may deem reasonable and proper for the securityof the bondholders. All expenses incurred in carrying out the provisions ofsuch trust agreement or resolution may be treated as a part of the cost ofthe operation of the turnpike project or projects.
History: L. 1953, ch. 308, § 10; April 7.