The governing body of the city may enter into an agreement with any competent bank
or trust company as trustee for the holders of such bonds, setting forth the duties
of the city and the bridge commission in respect to the construction, maintenance,
operation and insurance on all funds, the insurance of money on hand or on deposit
and the rights and remedies of said trustee and the holders of such bonds, and restricting
the individual right of action of bondholders as is customary in trust agreements
respecting bonds of corporations. Said trust agreement may contain such provisions for protecting and enforcing the
rights and remedies of the trustee and approval by the original bond purchasers of
the appointment of consulting engineers and of the security given by the bridge contractors
and by any bank or trust company in which the proceeds of bonds or bridge tolls or
other money of the bridge commission shall be deposited, and may provide that no contract
for construction shall be made without the approval of the consulting engineers. Said trust agreement may further contain provisions and covenants that all or any
deposited money shall be secured, as may be therein provided, by surety company bonds
or otherwise, and that investments of any or all money shall be prohibited, except
as therein provided, or shall be regulated as therein provided, and that insurance
upon the bridge and all property connected therewith, also use and occupancy insurance,
shall be carried to the extent and under the conditions therein provided. Such trust agreement may also include a covenant that until the revenue bonds secured
by such agreement and the interest thereon shall have been paid, the city will charge
and collect for transit over any or all other bridges, then or thereafter owned by
such city, rates of tolls which may be fixed in such covenant or may be based upon
principles and premises set forth in such covenant. The tolls thereafter collected pursuant to such covenant shall be applied as provided
in section 14-1226, or for the acquisition or construction or the maintenance and operation, in whole
or in part, of any bridge or bridges now owned or hereafter acquired or constructed
by such city or as may be otherwise provided by law.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.