KRS 164A.150: Issuance of refunding obligations.

(1) The corporation is hereby authorized to provide for the issuance of refunding

obligations for the purpose of refunding any obligations then outstanding which

shall have been issued under the provisions of this chapter, including the payment

of any redemption premium thereon and any interest accrued or to accrue to the date

of redemption of such obligations and, if deemed advisable by the corporation, for

any corporate purpose of the corporation. The issuance of such obligations, the

maturities and other det ails thereof, the rights of the holders thereof, and the rights,

duties and obligations of the corporation in respect of the same shall be governed by

the provisions of this chapter which relate to the issuance of obligations, insofar as

such provisions may be appropriate therefor.

(2) Refunding obligations may be sold or exchanged for outstanding obligations issued

under this chapter and, if sold, the proceeds thereof may be applied, in addition to

any other authorized purposes, to the purchase, redemption or payment of such

outstanding obligations. Pending the application of the proceeds of any such

refunding obligations, with any other available funds, to the payment of the

principal, accrued interest and any redemption premium on the obligations being

refunded, and, if so provided or permitted in the resolution authorizing the issuance

of such refunding obligations or in the trust agreement securing the same, to the

payment of any interest on such refunding obligations and any expenses in

connection with such refunding, such proceeds may be invested in direct obligations

of, or obligations the principal of and the interest on which are unconditionally

guaranteed by, the United States of America which shall mature or which shall be

subject to redemption by the holders thereof, at the option of such holders, not later

than the respective dates when the proceeds, together with the interest accruing

thereon, will be required for the purposes intended.