KRS § 76.160 — KY Code / Title IX / Chapter 76 / Section 76.160
76.160 Enforcement of rights of bondholders -- Trustee -- Receiver
Status: in_force

76.160 Enforcement of rights of bondholders -- Trustee -- Receiver.

(1) Subsections (2) and (3) have no application to construction subdistrict bonds or

obligations. All references to revenues, rates, rentals, charges, or collections in

subsections (2) and (3) exclude those derived from or made on account of

construction subdistricts. District facilities referred to in subsections (2) and (3)

exclude construction subdistrict facilities.

(2) In the event that the district shall default in the payment of principal of, or interest

on, any of the bonds issued pursuant to KRS 76.010 to 76.210 after the said

principal or interest shall become due, whether at maturity or upon call for

redemption, and such default shall continue for a period of thirty (30) days, or in the

event that the district shall fail or refuse to comply with the provisions of KRS

76.010 to 76.210, or shall default in any agreement made with the holders of the

bonds, the holders of twenty percent (20%) in aggregate principal amount of the

bonds then outstanding, by instrument or instruments filed in the office of the

county clerk of the county embracing the district and proved or acknowledged in the

same manner as a deed to be recorded, may apply to a judge of the Circuit Court of

the county, to appoint a trustee to represent all of the bondholders for the purposes

herein provided. Upon such application such judge shall appoint a trustee and such

trustee may, and upon written request of the holders of twenty percent (20%) in

principal amount of the bonds of the district then outstanding shall, in his or its own

name, (a) by mandamus or other suit, action or proceeding at law or in equity,

enforce all rights of the bondholders, including but not limited to the right to require

the district to collect rates, rentals, and other charges, adequate to carry out any

agreement as to, or pledge of, the revenues of the district, and to require the district

and its officers to carry out any other agreement with the bondholders and to

perform its and their duties under KRS 76.010 to 76.210; (b) bring suit upon the

bonds; (c) by action or suit in equity, require the district to account as if it were the

trustee of an express trust for the bondholders; (d) by action or suit in equity, enjoin

any acts or things which may be unlawful or in violation of the rights of

bondholders; (e) declare all bonds due and payable, and if all defaults shall be made

good then to annul such declarations and its consequences.

(3) Any such trustee, whether or not all bonds have been declared due and payable,

shall be entitled as of right, upon application to the judge in the chancery branch, to

the appointment of a receiver, who may enter upon and take possession of the

facilities of the district, or any part or parts thereof, and operate and maintain the

same, and collect and receive all rentals, rates, and other charges, and other

revenues, of the district, thereafter arising therefrom, in the same manner as the

district and its officers might do, and shall deposit all such moneys in a separate

account and apply the same in such manner as such court shall direct. In any suit,

action, or proceeding, by the trustee, the fees, counsel fees, and expenses of the

trustee and of the receiver, if any, shall constitute disbursements taxable as costs.

All costs and disbursements allowed by the court shall be a first charge on any

revenue derived from the facilities of the district. Such trustee shall, in addition to

the foregoing, have and possess all of the powers necessary or appropriate for the

exercise of any functions specifically set forth herein or incident to the general

representation of the bondholders in the enforcement and protection of their rights.