KRS 173.080: Issuance of library bonds.

The board of trustees may, in its discretion, issue bonds in the sum of not over one

million dollars ($1,000,000) for the purpose of making improvements or repairs, or

paying off any indebtedness it may owe. The bonds may be secured by any or all real or

personal property owned by the library. The bonds shall be designated as "library bonds"

and the board of trustees shall, by resolution, fix the date and maturity of the bonds, the

rate of interest and form they shall bear, and where they shall be payable. The board shall

determine when, at what price and how the bonds shall be sold. As the bonds are sold

their proceeds shall be placed in some bank, but shall be kept in a separate account and

shall be used only for the purpose for which the bonds were issued, provided however the

expense and cost of floating the bonds may be paid therefrom. The rent received in any

year from any real property belonging to the board of trustees shall be first applied to the

payment of interest on bonds for such year, and next to the sinking fund requirements of

the bond issue for such year, and the balance may be used for current operating expenses

of the board of trustees.