KRS 177.460: Trust agreement to secure bonds -- Rights and remedies of bondholders.

In the discretion of the department, any bonds issued under the provisions of KRS

177.390 to 177.570 may be secured by a trust agreement by and between the department

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

trust company within or without the Commonwealth. Such trust agreement or the

proceedings providing for the issuance of such bonds may pledge or assign the tolls and

other revenues to be received, but shall not convey or mortgage any turnpike project or

any part thereof. Such trust agreement or proceedings providing for the issuance of such

bonds 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

covenants setting forth the duties of the department in relation to the acquisition of

property and the construction, improvement, maintenance, repair, operation and insurance

of the turnpike project or projects in connection with which such bonds sh all have been

authorized, the rates of toll to be charged, 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 Commonwealth which may act as depository of the proc eeds of bonds or of

revenues to furnish such indemnifying bonds or to pledge such securities as may be

required by the department. Any such trust agreement may set forth the rights and

remedies of the bondholders and of the trustee, and may restrict the in dividual right of

action by bondholders. In addition to the foregoing, any such trust agreement or

proceedings may contain such other provisions as the department may deem reasonable

and proper for the security of the bondholders. All expenses incurred in carrying out the

provisions of such trust agreement or proceedings may be treated as a part of the cost of

the operation of the turnpike project or projects.