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67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent.

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67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent. (1) Notwithstanding any of the other provisions of KRS 67.450 to 67.550, the county buildings commission may, by declaring its desire to do so, provide, in addition to <br>all of the other provisions authorized in KRS 67.450 to 67.550 in connection with <br>the issuance of its bonds, that such bonds shall be its general obligations and may, <br>in connection with the issuance of its bonds, execute a mortgage deed of trust in <br>favor of a trustee, providing that in the event of default by the commission in the <br>payment of interest or principal of its bonds or in the event of default of any other <br>covenant contained in such mortgage deed of trust the trustee, upon behalf of the <br>bondholders, may institute and carry through foreclosure proceedings, with the <br>property secured by the mortgage deed of trust put up for sale on foreclosure <br>proceedings, the proceeds of such sale to be used for the benefit of the bondholders. <br>In connection with such plan of financing, such provisions may be inserted in the <br>bonds themselves and in the mortgage deed of trust as may be necessary to protect <br>the bondholders and in order to make such bonds salable with the lowest net interest <br>cost to the commission. If the county buildings commission declares its intent by <br>resolution to follow the provisions of this section, and in order to do so it is <br>necessarily inconsistent that the provisions of any other section of KRS 67.450 to <br>67.550 be complied with, such other provisions of KRS 67.450 to 67.550 which are <br>necessarily inconsistent with the provisions of this section shall not be complied <br>with to the extent but only to the extent of such necessary inconsistency. If general <br>obligations of the county buildings commission are issued pursuant to the <br>provisions of this section, such obligations shall be general obligations only of the <br>county buildings commission as a public corporation and shall not be general <br>obligations of the individual members of such county buildings commission to any <br>extent. (2) It is the intent of this section to permit the county buildings commission, if it desires to do so, to issue obligations under this section which may also be secured in the <br>same way that obligations issued under the provisions of other sections of KRS <br>67.450 to 67.550 are secured, to the full extent that this may be done consistent with <br>the provisions of this section. History: Created 1962 Ky. Acts ch. 224, sec. 21.