KRS 184.210: Application of money from installment payments, interest and penalties.

It shall be the duty of the district treasurer promptly to apply all moneys paid in on

installments of principal or interest and on penalties to the payment of the bonds and

coupons or apportionment warrants issued hereunder. If the fund accumulated from t he

collection of assessments, interest and penalties be more than sufficient to pay all

principal and interest due, said treasurer shall refund to each person paying an assessment

for the project a proportionate amount of the excess. Failure on the part of the district to

collect any payment when due shall create no liability against the district and shall create

no liability against the members of the board of directors, except for gross negligence or

malfeasance in office.