§ 8-15-2-13 — Trust agreements securing bond issue

Indiana § 8-15-2-13

• Jurisdiction: Indiana
• Art. 15: TOLL ROADS
• Ch. 2: Operation and Financing of Toll Roads

Text

(a) In the discretion of the authority, any
bonds issued under the provisions of this chapter may be secured by a
trust agreement by and between the authority and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company within or without the state.
(b) Any such trust agreement may pledge or assign the tolls and
other revenue to be received from such project or any other project or
projects constructed under the provisions of this chapter, subject only
to valid prior pledges and except as provided by this chapter with
respect to succeeding lien bonds, but shall not convey or mortgage any
toll road project or any part thereof.
(c) Any such trust agreement or any resolution 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 authority in relation to:
(1) the acquisition of property and the construction, improvement,
maintenance, repair, operation, and insurance of the toll road
project or projects in connection with which such bonds shall
have been authorized, or of which the revenues are pledged;
(2) the rates of toll to be charged, and the custody, safeguarding,
and application of all moneys; and
(3) the employment of consulting engineers in connection with
the construction or operation of such project or projects.
(d) It shall be lawful for any bank or trust company incorporated
under the laws of the state which may act as depository of the proceeds
of bonds or of revenue to furnish such indemnifying bonds or to pledge
such securities as may be required by the authority.
(e) Any such trust agreement may set forth the rights and remedies
of the bondholders and of the trustee, and may restrict the individual
right of action by bondholders as is customary in trust agreements or
trust indentures securing bonds or debentures of corporations. In
addition, any such trust agreement may contain such other provisions
as the authority may deem reasonable and proper for the security of the
bondholders.
(f) All expenses incurred in carrying out the provisions of any such
trust agreement may be treated as a part of the cost of the operation of
the toll road project or projects.
Formerly: Acts 1951, c.281, s.13; Acts 1971, P.L.99, SEC.3. As
amended by Acts 1980, P.L.74, SECS.239, 240; P.L.109-1983,
SEC.17.