KRS 441.650: Trust indenture to secure bonds.

In the discretion of the authority, any bonds issued under the provisions of KRS 441.625

to 441.695 may be secured by a trust indenture by and between the authority and a

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

company in or outside of Kentucky. Such trust indenture or the proceedings providing for

the issuance of such bonds may pledge or assign the rents and other revenues to be

received. The trust indenture or proceedings may contain provisions for protecting and

enforcing the rights and remedies of the bondholders which are reasonable and proper

and not in violation of law, including covenants setting forth the duties of the authority in

relation to the acquisition of property and the construction, improvemen t, maintenance,

repair, and insurance of the project or projects in connection with which such bonds are

authorized, the rates or rental charges, and the custody, safeguarding and application of

all moneys, and may restrict the individual right of action b y bondholders. It is lawful for

any bank or trust company which may act as depository of the proceeds of bonds or of

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

required by the rights and remedies of the bondholders and of the trustee. In addition, any

such trust indenture or proceedings may contain such other provisions as the authority

may deem reasonable and proper for the security of the bondholders. All expenses

incurred in carrying out the provisions of such trus t indenture or proceedings may be

treated as a part of the cost of the project or projects.