{"data":{"id":"us-ky/krs-76.160","jurisdiction":"us-ky","citation":"KRS 76.160","heading":"Enforcement of rights of bondholders -- Trustee -- Receiver.","body":"(1) Subsections (2) and (3) have no application to construction subdistrict bonds or\nobligations. All references to revenues, rates, rentals, charges, or collections in\nsubsections (2) and (3) exclude those derived from or made on account of\nconstruction subdi stricts. District facilities referred to in subsections (2) and (3)\nexclude construction subdistrict facilities.\n(2) In the event that the district shall default in the payment of principal of, or interest\non, any of the bonds issued pursuant to KRS 76.010  to 76.210 after the said\nprincipal or interest shall become due, whether at maturity or upon call for\nredemption, and such default shall continue for a period of thirty (30) days, or in the\nevent that the district shall fail or refuse to comply with the p rovisions of KRS\n76.010 to 76.210, or shall default in any agreement made with the holders of the\nbonds, the holders of twenty percent (20%) in aggregate principal amount of the\nbonds then outstanding, by instrument or instruments filed in the office of th e\ncounty clerk of the county embracing the district and proved or acknowledged in the\nsame manner as a deed to be recorded, may apply to a judge of the Circuit Court of\nthe county, to appoint a trustee to represent all of the bondholders for the purposes\nherein provided. Upon such application such judge shall appoint a trustee and such\ntrustee may, and upon written request of the holders of twenty percent (20%) in\nprincipal amount of the bonds of the district then outstanding shall, in his or its own\nname, (a) by mandamus or other suit, action or proceeding at law or in equity,\nenforce all rights of the bondholders, including but not limited to the right to require\nthe district to collect rates, rentals, and other charges, adequate to carry out any\nagreement as to, or pledge of, the revenues of the district, and to require the district\nand its officers to carry out any other agreement with the bondholders and to\nperform its and their duties under KRS 76.010 to 76.210; (b) bring suit upon the\nbonds; (c) by action or suit in equity, require the district to account as if it were the\ntrustee of an express trust for the bondholders; (d) by action or suit in equity, enjoin\nany acts or things which may be unlawful or in violation of the rights of\nbondholders; (e) declare all bonds due and payable, and if all defaults shall be made\ngood then to annul such declarations and its consequences.\n(3) Any such trustee, whether or not all bonds have been declared due and payable,\nshall be entitled as of right, upon application to the judge in the chancery branch, to\nthe appointment of a receiver, who may enter upon and take possession of the\nfacilities of the district, or any part or parts thereof, and operate and maintain the\nsame, and collect and receive all rentals, rates, an d other charges, and other\nrevenues, of the district, thereafter arising therefrom, in the same manner as the\ndistrict and its officers might do, and shall deposit all such moneys in a separate\naccount and apply the same in such manner as such court shall direct. In any suit,\naction, or proceeding, by the trustee, the fees, counsel fees, and expenses of the\ntrustee and of the receiver, if any, shall constitute disbursements taxable as costs.\nAll costs and disbursements allowed by the court shall be a first charge on any\nrevenue derived from the facilities of the district. Such trustee shall, in addition to\nthe foregoing, have and possess all of the powers necessary or appropriate for the\nexercise of any functions specifically set forth herein or incident to the general\nrepresentation of the bondholders in the enforcement and protection of their rights.","path":["KRS Chapter 76"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=24490","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:35Z","sha256":"338e9cb9a58aa515d5a064f50ab477b6d1d5c6cb851f696b934f0588516c0384","source_id":"us-ky","stale":false,"prev":"us-ky/krs-76.150","next":"us-ky/krs-76.170"},"notice":"GroundRules: Original legal text. Not legal advice."}