KRS 162.240: Deposit and investment of sinking fund.

The sinking fund shall be deposited in a depository selected by the governing body of the

city. The deposit, where practicable, shall be continuously secured by a pledge to the city

of direct obligations of the United States, exclusive of accrued interest, at all times at

least equal to the balance on deposit in the account, or in some other manner acceptable

to the purchasers or holders of the bonds. The securities shall be deposited with the city or

held by a trustee or agent satisfactory to the governing body of the city. The sinking fund

may be invested in direct obligations of the United States.