KRS 164A.090: Trust agreements authorized.

In the discretion of the corporation any obligation issued under the provisions of this

chapter may be secured by a trust agreement by and between the corporation and a

corporate trustee, which may be any trust company or bank having the powers of a trust

company within or without the state. Such trust agreement or the resolution providing for

the issuance of such obligations may pledge or assign all or any part of the revenues or

assets of the corporation, including, without limitation, insured student lo ans, insured

student loan commitments, temporary loans, contracts, agreement and other security or

investment obligations, the fees or charges made or received by the corporation, the

moneys received in payment of insured student loans and interest thereon , including the

proceeds of insurance thereon, and any other moneys received or due to be received by

the corporation. Such trust agreement or resolution may contain such provisions for

protecting and enforcing the rights and remedies of the holders of any such obligations as

may be reasonable and proper and not in violation of law, including covenants setting

forth the duties of the corporation in relation to the purposes to which obligation proceeds

may be applied, the disposition or pledging of the reven ues or assets of the corporation,

the terms and conditions for the issuance of additional obligations, and the custody,

safeguarding and application of all moneys. It shall be lawful for any bank or trust

company incorporated under the laws of the state wh ich may act as depository of the

proceeds of obligations, revenues or other money hereunder to furnish such indemnifying

bonds or to pledge such securities as may be required by the corporation. Any such trust

agreement or resolution may set forth the righ ts and remedies of the holders of any

obligations and of the trustee, and may restrict the individual right of action by any such

holders. In addition to the foregoing, any such trust agreement or resolution may contain

such other provisions as the corpora tion may deem reasonable and proper for the security

of the holders of any obligations. All expenses incurred in carrying out the provisions of

such trust agreement or resolution may be paid from the revenues or assets pledged or

assigned to the payment of the principal of and the interest on obligations or from any

other funds available to the corporation.