68-2038. Trust agreement or resolution providing for bond issues; contents; expenses of.
68-2038
68-2038. 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 orbank having the powers of a trust company within or without the state.Such trust agreement or the resolution providing for the issuance ofsuch bonds may pledge or assign the tolls and other revenues to bereceived and any payments to the authority from the state highway fundprovided to be made pursuant to the provisions of K.S.A. 68-2033, but shallnot convey or mortgage any turnpike project or anypart thereof.
Such trust agreement or resolution providing for the issuance of suchbonds may contain such provisions for protecting and enforcing therights and remedies of the bondholders as may be reasonable and properand not in violation of law, including covenants setting forth theduties of the authority in relation to the acquisition of property andthe construction, improvement, maintenance, repair, operation andinsurance of the turnpike project or projects in connection with whichsuch bonds shall have been authorized, the rates of toll to be charged,and the custody, safeguarding and application of all moneys. It shall belawful for any bank or trust company incorporated under the laws of thestate which may act as depository of the proceeds of bonds or ofrevenues or other moneys received by the authority to furnish suchindemnifying bonds or to pledge such securities as may be required bythe authority. Any such trust agreement may set forth the rights andremedies of the bondholders and of the trustee, and may restrict theindividual right of action by bondholders.
In addition to the foregoing, any such trust agreement or resolutionmay contain such other provisions as the authority may deem reasonableand proper for the security of the bondholders. All expenses incurred incarrying out the provisions of such trust agreement of [or] resolutionmay be treated as a part of the cost of the operation of the turnpikeproject or projects.
History: L. 1957, ch. 368, § 9; April 26.