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175.530 Trust indenture to secure bonds -- Rights and remedies of bondholders.

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175.530 Trust indenture to secure bonds -- Rights and remedies of bondholders. In the discretion of the authority, any bonds issued under the provisions of this chapter <br>may be secured by a trust indenture by and between the authority and a corporate trustee, <br>which may be any trust company or bank having the powers of a trust company within or <br>without the Commonwealth. Such trust indenture or the proceedings providing for the <br>issuance of such bonds may pledge or assign the tolls and other revenues to be received, <br>but shall not convey or mortgage any turnpike project or any part thereof. Such trust <br>indenture or proceedings may contain such provisions for protecting and enforcing the <br>rights and remedies of the bondholders as may be reasonable and proper and not in <br>violation of law, including covenants setting forth the duties of the authority in relation to <br>the acquisition of property and the construction, improvement, maintenance, repair, <br>operation and insurance of the turnpike project or projects in connection with which such <br>bonds shall have been authorized, the rates of toll or the rentals to be charged, and the <br>custody, safeguarding and application of all moneys. It shall be lawful for any bank or <br>trust company incorporated under the laws of the Commonwealth which may act as <br>depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or <br>to pledge such securities as may be required by the authority. Any such trust indenture <br>may set forth the rights and remedies of the bondholders and of the trustee, and may <br>restrict the individual right of action by bondholders. In addition to the foregoing, any <br>such trust indenture or proceedings may contain such other provisions as the authority <br>may deem reasonable and proper for the security of the bondholders. All expenses <br>incurred in carrying out the provisions of such trust indenture or proceedings may be <br>treated as a part of the cost of the operation of the turnpike project or projects. Effective: Marach 25, 1960 <br>History: Created 1960 Ky. Acts ch. 173, sec. 13, effective March 25, 1960.