KRS § 224A.130 — KY Code / Title XVIII / Chapter 224A / Section 224A.130
224A.130 Trust indentures
Status: in_force

224A.130 Trust indentures.

(1) In the discretion of the authority, any revenue bonds or notes issued under the

provisions of this chapter may be secured by a trust indenture by and between the

authority and a corporate trustee which may be any trust company or bank having

the powers of a trust company within or without the State of Kentucky. Such trust

indenture, or the resolution of the authority providing for the issuance of such

revenue bonds or notes, may pledge or assign for the security of such revenue bonds

or notes, all or any part of the totality of authority revenues received and to be

received. Such trust indenture or resolution of the authority may contain such

provisions for protecting and enforcing the rights and remedies of the bondholders

as may be reasonable and proper, and not in violation of law, including, inter alia,

covenants and provisions setting forth the duties of the authority in relation to the

purposes to which revenue bond and note proceeds may be applied; the disposition

or pledging of assets and authority revenues; and the custody, safeguarding, and

application of all authority revenues. It shall be lawful for any bank or trust

company incorporated under the laws of the state which may act as depository of

the proceeds of revenue bonds, notes or of authority revenues, to furnish such

indemnifying bonds, or to pledge such securities as may be required by such trust

indenture or resolution of the authority. Any such trust indenture or authority

resolution may set forth the rights and remedies of the bondholders and of the

trustee, and may restrict the individual right of action by bondholders, where a trust

indenture has been entered into. In addition to the foregoing, any such trust

indenture or authority resolution may contain such other provisions as the authority

may determine to be reasonable and proper for the further security of the holders of

any revenue bonds or notes. All expenses incurred in carrying out the provisions of

such trust indenture or bond proceedings may be treated as a part of the cost of

operating the authority, and may be paid from authority revenues pledged or

assigned to the payment of the principal of and the interest on revenue bonds or

notes, or from any other funds properly available to the authority.

(2) Notwithstanding any other provision to the contrary, any such trust indenture or

authority resolution shall provide that, except to the extent the rights afforded to

bondholders by this section shall be enforceable and enforced by a trustee under a

trust indenture rather than by the bondholders, any holder of revenue bonds or notes

issued by the authority or any of the coupons appurtenant thereto, may, either at law

or in equity, by suit, action, mandamus, or other proceedings, protect and enforce

any and all rights generally arising under the laws of the state, or granted under this

chapter, or under such trust indenture, or by the resolution of the authority

authorizing the issuance of such revenue bonds or notes, and may specifically

enforce and compel by mandamus the performance of all duties required by this

chapter, or by such trust indenture, or such authority resolution, to be performed by

the authority or by any officer or employee thereof, including, inter alia, the prompt

and full enforcement of the terms and conditions of all assistance agreements, to

which the authority is a party.