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177.460 Trust agreement to secure bonds -- Rights and remedies of bondholders.

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177.460 Trust agreement to secure bonds -- Rights and remedies of bondholders. In the discretion of the department, any bonds issued under the provisions of KRS <br>177.390 to 177.570 may be secured by a trust agreement by and between the department <br>and a corporate trustee, which may be any trust company or bank having the powers of a <br>trust company within or without the Commonwealth. Such trust agreement or the <br>proceedings providing for the issuance of such bonds may pledge or assign the tolls and <br>other revenues to be received, but shall not convey or mortgage any turnpike project or <br>any part thereof. Such trust agreement or proceedings providing for the issuance of such <br>bonds may contain such provisions for protecting and enforcing the rights and remedies <br>of the bondholders as may be reasonable and proper and not in violation of law, including <br>covenants setting forth the duties of the department in relation to the acquisition of <br>property and the construction, improvement, maintenance, repair, operation and insurance <br>of the turnpike project or projects in connection with which such bonds shall have been <br>authorized, the rates of toll to be charged, and the custody, safeguarding and application <br>of all moneys. It shall be lawful for any bank or trust company incorporated under the <br>laws of the Commonwealth which may act as depository of the proceeds of bonds or of <br>revenues to furnish such indemnifying bonds or to pledge such securities as may be <br>required by the department. Any such trust agreement may set forth the rights and <br>remedies of the bondholders and of the trustee, and may restrict the individual right of <br>action by bondholders. In addition to the foregoing, any such trust agreement or <br>proceedings may contain such other provisions as the department may deem reasonable <br>and proper for the security of the bondholders. All expenses incurred in carrying out the <br>provisions of such trust agreement or proceedings may be treated as a part of the cost of <br>the operation of the turnpike project or projects. History: Created 1950 Ky. Acts ch. 157, sec. 9.