KRS 103.251: Mortgage deed of trust by issuer of bonds.

Notwithstanding the provisions of KRS 103.250, it may be provided in the proceedings

authorizing bonds issued under the terms of KRS 103.200 to 103.285, inclusive, that the

issuer, in connection with the issuance of its bonds, execute a mortgage deed of t rust in

favor of the trustee on the project acquired or constructed through the application of the

proceeds of the bonds, providing that in the event of default by the issuer in the payment

of interest on or principal of its bonds, or in the event of defau lt of any other covenant

contained in such mortgage deed of trust, the trustee, upon behalf of the bondholders,

may institute and carry through foreclosure proceedings in which the property secured by

the mortgage deed of trust may be sold, the proceeds of such sale to be applied to the

payment of the bonds and any interest or premium due thereon, and to the costs of the

proceedings. In connection with such plan of financing, such provisions may be inserted

in the bonds themselves and in the mortgage deed of trust as may be necessary to protect

the bondholders and to make such bonds salable with the lowest net interest cost to the

issuer. If the issuer declares its intent by ordinance or resolution to follow the provisions

of this section the statutory mor tgage lien provided in KRS 103.250 shall not attach and

all other provisions of KRS 103.200 to 103.285, inclusive, which are necessarily

inconsistent with the mortgage deed of trust shall be inapplicable to the extent of such

necessary inconsistency.