KRS 175.505: Debt payment acceleration fund -- Revenue source -- Use to accelerate

payment of turnpike authority debt.

There is hereby created a fund in the road fund of the Commonwealth of Kentucky

entitled the debt payment acceleration fund. The fund shall consist of twenty percent

(20%) of the revenues to the state road fund provided by the adjustments in KRS

138.220(2) excluding the provisions of KRS 177.320 and 177.365. Annually the

Transportation Cabinet shall use the funds generated to accelerate the pa yment of debt

service including principal and interest, over and above the annual debt service payments

appropriated for each fiscal year, for all bonds issued and any refinancings thereof by the

Kentucky Turnpike Authority. The Transportation Cabinet shal l notify the Interim Joint

Committee on Appropriations and Revenue by January 1 of each fiscal year of the debt

payments which are to or have been accelerated in the fiscal year. In the event that, due to

bond market conditions, the terms of the bonds issu ed or other factors, the Transportation

Cabinet is unable to accelerate debt service payments, the Transportation Cabinet shall

provide documentation to the Interim Joint Committee on Appropriations and Revenue

that such acceleration is not possible and th e reasons therefor. In such an event, the funds

not available for debt acceleration shall be placed in a special escrow account in the

Transportation Cabinet. Such funds shall not be expended for any of the lawful purposes

of the Transportation Cabinet but shall be held in the escrow account until such time as

the debt acceleration described by this section is possible. The Transportation Cabinet

shall invest the funds allocated to the escrow account and any funds generated from these

investments shall rema in in the escrow account. Any funds remaining in the escrow

account at the close of the fiscal year shall not lapse but shall be carried forward to the

next fiscal year for use as provided in this section. In the event that all principal and

interest outst anding on any bonds issued or any refinancing thereof by the turnpike

authority has been paid, the Transportation Cabinet shall so report. In that event, any

funds remaining in the escrow account shall remain in the fund until such time as the

funds are ap propriated by the General Assembly for any of the lawful purposes of the

Transportation Cabinet.