KRS 180.190: Department may contract to keep bridges insured.

The department may contract in advance of the issuance of the bonds that while bonds of

the project are outstanding, it will keep the bridges in the project adequately insured for

the protection of the state and the bondholders, in companies satisfactory t o the

bondholders, under an "all -risk coverage" policy either for the full insurable value or for

the face value of the bonds outstanding for such project, whichever is the lesser amount.

The department may also contract to carry, during the same period, i nsurance policies in

companies satisfactory to the bondholders, covering the use and occupancy of the bridges

in such project, in an amount sufficient to provide an income for one (1) year equal to at

least one (1) year's interest upon the bonds then outst anding. The premium upon the

policies shall be paid from appropriations out of the state road fund unless other provision

for payment, but not out of bridge tolls and revenues, is made by law. The department

may carry insurance of a lesser extent or amount if adequate in the judgment of the

department and the original purchasers of the bonds.