HIGHWAYS AND BRIDGES
IDAHO TURNPIKE AUTHORITY
40-413. Trust agreement. (1) In the discretion of the board any bonds issued may be secured by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. A trust agreement or resolution providing for the issuance of bonds, subject to the provisions of section 40-412, Idaho Code, may pledge or assign tolls or other revenues to which the board’s right then exists or may subsequently come into existence, and moneys derived from them, and the proceeds of the bonds, but shall not convey or mortgage any turnpike project or any part of it. A trust agreement or resolution providing for the issuance of bonds may contain provisions for protecting and enforcing the rights and remedies of bondholders as may be reasonable and proper, and not in violation of law, including covenants setting forth the duties of the board in relation to the requisition of property and the construction, improvement, maintenance, repair, operation and insurance of a turnpike project or projects, the rates of tolls and revenues to be charged, the payment, security or redemption of bonds, and the custody, safeguarding and application of all moneys, and provisions for the employment of consulting engineers in connection with the construction or operation of a turnpike project or projects. 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 revenues to furnish indemnifying bonds or to pledge any securities as may be required by the board. A trust agreement or resolution may set forth rights and remedies of bondholders and of the trustee, and may restrict individual rights of action by bondholders. In addition, a trust agreement or resolution may contain other provisions as the board may deem reasonable and proper for the security of bondholders. All expenses incurred in carrying out the provisions of a trust agreement may be treated as a part of the cost of the operation of the turnpike project.
(2) Any pledge of tolls, other revenues, or other moneys made by the board shall be valid and binding from the time when the pledge is made. The tolls, other revenues, or other moneys pledged and subsequently received by the board shall immediately be subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the board, irrespective of whether the parties have notice of it.
[40-413, added 1985, ch. 253, sec. 2, p. 611.]