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198A.100 Trust agreement to secure corporate obligations -- Operation thereof.

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198A.100 Trust agreement to secure corporate obligations -- Operation thereof. In the discretion of the corporation any obligations issued under the provisions of this <br>chapter may be secured by a trust agreement by and between the corporation and a <br>corporate trustee, which may be any trust company or bank having the powers of a trust <br>company within or without the state. Such trust agreement or the resolution providing for <br>the issuance of such obligations may pledge or assign all or any part of the revenues or <br>assets of the corporation, including, without limitation, mortgage loans, mortgage loan <br>commitments, construction loans, temporary loans, contracts, agreements and other <br>security or investment obligations, the fees or charges made or received by the <br>corporation, the moneys received in payment of loans and interest thereon, and any other <br>moneys received or to be received by the corporation. Such trust agreement or resolution <br>may contain such provisions for protecting and enforcing the rights and remedies of the <br>holders of any such obligations as may be reasonable and proper and not in violation of <br>law, including covenants setting forth the duties of the corporation in relation to the <br>purposes to which obligation proceeds may be applied, the disposition or pledging of the <br>revenues or assets of the corporation, the terms and conditions for the issuance of <br>additional obligations, and the custody, safeguarding and application of all moneys. It <br>shall be lawful for any bank or trust company incorporated under the laws of the state <br>which may act as depository of the proceeds of obligations, revenues or other money <br>hereunder to furnish such indemnifying bonds or to pledge such securities as may be <br>required by the corporation. Any such trust agreement or resolution may set forth the <br>rights and remedies of the holders of any obligations and of the trustee, and may restrict <br>the individual right of action by any such holders. In addition to the foregoing, any such <br>trust agreement or resolution may contain such other provisions as the corporation may <br>deem reasonable and proper for the security of the holders of any obligations. All <br>expenses incurred in carrying out the provisions of such trust agreement or resolution <br>may be paid from the revenues or assets pledged or assigned to the payment of the <br>principal of and the interest on obligations or from any other funds available to the <br>corporation. History: Created 1972 Ky. Acts ch. 70, sec. 11.