KRS 184.375: Revenues derived from project -- How applied.

Revenues derived from each project of a transportation improvement district in

connection with which any bonds are outstanding shall be first applied to pay the cost of

the construction, maintenance, and repair of the project and to provide such reserves

therefor as are provided for in the bond proceedings authorizing the issuance of those

outstanding bonds, and otherwise as provided by the board of trustees of the district, and

the balance of the pledged revenues shall be set aside, at regular intervals as are provided

in the bond proceedings, in a bond service fund which is hereby pledged to and charged

with the payment of the bond service charges on any outstanding bonds as provided in the

applicable bond proceedings. The pledge shall be valid and binding from the time the

pledge is made. The revenues and the pledged revenues thereafter received by the board

shall immediately be subject to the lien of the pledge without any physical delivery

thereof or further act, and the lien of such pledge shall be vali d and binding as against all

parties having claims of any kind in tort, contract, or otherwise against the board, whether

or not the parties have notice thereof. The bond proceedings by which a pledge is created

need not be filed or recorded except in the records of the board. The use and disposition

of moneys to the credit of a bond service fund shall be subject to the applicable bond

proceedings. Except as is otherwise provided in the bond proceedings, a bond service

fund shall be a fund for all such bond s, without distinction or priority of one (1) over

another.