State Codes and Statutes

Statutes > Kentucky > 103-00 > 251

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103.251 Mortgage deed of trust by issuer of bonds. Notwithstanding the provisions of KRS 103.250, it may be provided in the proceedings <br>authorizing bonds issued under the terms of KRS 103.200 to 103.285, inclusive, that the <br>issuer, in connection with the issuance of its bonds, execute a mortgage deed of trust in <br>favor of the trustee on the project acquired or constructed through the application of the <br>proceeds of the bonds, providing that in the event of default by the issuer in the payment <br>of interest on or principal of its bonds, or in the event of default of any other covenant <br>contained in such mortgage deed of trust, the trustee, upon behalf of the bondholders, <br>may institute and carry through foreclosure proceedings in which the property secured by <br>the mortgage deed of trust may be sold, the proceeds of such sale to be applied to the <br>payment of the bonds and any interest or premium due thereon, and to the costs of the <br>proceedings. In connection with such plan of financing, such provisions may be inserted <br>in the bonds themselves and in the mortgage deed of trust as may be necessary to protect <br>the bondholders and to make such bonds salable with the lowest net interest cost to the <br>issuer. If the issuer declares its intent by ordinance or resolution to follow the provisions <br>of this section the statutory mortgage lien provided in KRS 103.250 shall not attach and <br>all other provisions of KRS 103.200 to 103.285, inclusive, which are necessarily <br>inconsistent with the mortgage deed of trust shall be inapplicable to the extent of such <br>necessary inconsistency. History: Created 1976 Ky. Acts ch. 214, sec. 5.

State Codes and Statutes

Statutes > Kentucky > 103-00 > 251

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103.251 Mortgage deed of trust by issuer of bonds. Notwithstanding the provisions of KRS 103.250, it may be provided in the proceedings <br>authorizing bonds issued under the terms of KRS 103.200 to 103.285, inclusive, that the <br>issuer, in connection with the issuance of its bonds, execute a mortgage deed of trust in <br>favor of the trustee on the project acquired or constructed through the application of the <br>proceeds of the bonds, providing that in the event of default by the issuer in the payment <br>of interest on or principal of its bonds, or in the event of default of any other covenant <br>contained in such mortgage deed of trust, the trustee, upon behalf of the bondholders, <br>may institute and carry through foreclosure proceedings in which the property secured by <br>the mortgage deed of trust may be sold, the proceeds of such sale to be applied to the <br>payment of the bonds and any interest or premium due thereon, and to the costs of the <br>proceedings. In connection with such plan of financing, such provisions may be inserted <br>in the bonds themselves and in the mortgage deed of trust as may be necessary to protect <br>the bondholders and to make such bonds salable with the lowest net interest cost to the <br>issuer. If the issuer declares its intent by ordinance or resolution to follow the provisions <br>of this section the statutory mortgage lien provided in KRS 103.250 shall not attach and <br>all other provisions of KRS 103.200 to 103.285, inclusive, which are necessarily <br>inconsistent with the mortgage deed of trust shall be inapplicable to the extent of such <br>necessary inconsistency. History: Created 1976 Ky. Acts ch. 214, sec. 5.

State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 103-00 > 251

Download pdf
Loading PDF...


103.251 Mortgage deed of trust by issuer of bonds. Notwithstanding the provisions of KRS 103.250, it may be provided in the proceedings <br>authorizing bonds issued under the terms of KRS 103.200 to 103.285, inclusive, that the <br>issuer, in connection with the issuance of its bonds, execute a mortgage deed of trust in <br>favor of the trustee on the project acquired or constructed through the application of the <br>proceeds of the bonds, providing that in the event of default by the issuer in the payment <br>of interest on or principal of its bonds, or in the event of default of any other covenant <br>contained in such mortgage deed of trust, the trustee, upon behalf of the bondholders, <br>may institute and carry through foreclosure proceedings in which the property secured by <br>the mortgage deed of trust may be sold, the proceeds of such sale to be applied to the <br>payment of the bonds and any interest or premium due thereon, and to the costs of the <br>proceedings. In connection with such plan of financing, such provisions may be inserted <br>in the bonds themselves and in the mortgage deed of trust as may be necessary to protect <br>the bondholders and to make such bonds salable with the lowest net interest cost to the <br>issuer. If the issuer declares its intent by ordinance or resolution to follow the provisions <br>of this section the statutory mortgage lien provided in KRS 103.250 shall not attach and <br>all other provisions of KRS 103.200 to 103.285, inclusive, which are necessarily <br>inconsistent with the mortgage deed of trust shall be inapplicable to the extent of such <br>necessary inconsistency. History: Created 1976 Ky. Acts ch. 214, sec. 5.