KRS 106.260: Form of bonds -- Improvement or refunding bonds -- Negotiability --

Procedure for sale.

(1) Bonds issued pursuant to this chapter by water district commissioners and by a

legislative body of a municipality may be issued in one (1) or more series, may bear

a date or dates, may mature at a time or times, not exceeding forty (40) years from

their respective dates, may be in a denomination or denominations, may be in a

form, either coupon or registered, may carry registration and conversion privileges,

may be executed in a manner, may be payable in a medium of payment, at a place or

places, may be sold or hypothecated in blocks, and may be subject to the terms of

repurchase or redemption of all or any of the bonds before maturity in a manner,

and at a price or prices as may be fixed by the board prior to the sale of the bonds.

(2) The board at any time may issue and sell revenue bonds to finance improvement or

issue and sell refunding bonds for the purpose of providing funds for the payment of

any outstanding bonds issued in accordance with the provisions of this chapter. The

new bonds shall be issued, sold, and secured in accordance with the provisions of

this chapter for the issuance of the original revenue bonds.

(3) All revenue bonds issued pursuant to th e provisions of this chapter in the hands of

bona fide holders, shall have all the qualities and incidents of negotiable

instruments under the law merchant. All bonds shall be sold to the highest

responsible bidder at a time and place as shall have been fi xed by the board in the

notice of the sale of the bonds, which notice shall have been advertised by

publication pursuant to KRS Chapter 424. The board shall receive written, sealed

competitive bids, which shall be publicly opened and read at the time and p lace

specified in the notice of sale. The board may reject all bids and readvertise.