KRS 184.350: Definitions for KRS 184.350 to 184.395.

As used in KRS 184.350 to 184.395:

(1) "Administrative agent" means a bank, trust company, or other person which has

responsibility for authenticating, delivering, or redeeming commercial paper on

behalf of the issuer;

(2) "Agent" means, as applicable, one (1) or more of the persons who are administrative

agents, indexing agents, remarketing agents, or other persons having responsibility

for performing functions with respect to floating rate interest structures or put

arrangements;

(3) "Bond proceedings" means the resolutions, trust agreements, certifications, notices,

sale proceedings, leases, lease -purchase agreements, assignments, credit

enhancement facility agreements, and other agreements, instruments, and

documents, as amended and supplemented, or any one (1) or more of a combination

thereof, authorizing, or authorizing and providing for the terms and conditions

applicable to, or providing for the security or sale or award or liquidity of, bonds,

and includes the provisions set forth or incorporated in those bonds and bond

proceedings;

(4) "Bond service charges" means principal, including any mandatory sinking fund or

mandatory redemption requirements for retirement of bonds, interest, and any

redemption premium payable on bonds, as those payments come d ue and are

payable to the bondholder or to a person making payment under a credit

enhancement facility of those bond service charges to a bondholder;

(5) "Bond service fund" means the applicable fund created by the bond proceedings for

and pledged to the payment of bond service charges on bonds provided for by those

proceedings, including all moneys, investments, and earnings from investments,

credited and to be credited to that fund as provided in the bond proceedings;

(6) "Bonds" means bonds, notes, inclu ding notes anticipating bonds or other notes,

commercial paper, certificates of participation, or other evidences of obligation,

including any interest coupons pertaining thereto, issued pursuant to KRS 184.350

to 184.395;

(7) "Commercial paper" means bonds with one (1) or more maturities of three hundred

sixty-five (365) days or less which, under the bond proceedings, are expected to be

funded by the issuance of additional bonds with maturities of three hundred sixty -

five days (365) or less, whether or not ultimately funded with long term bonds;

(8) "Cost" as applied to the construction of a project, includes:

(a) The cost of construction, including bridges over or under existing highways

and railroads;

(b) Acquisition of all property required by the district for such construction;

(c) Demolishing or removing any buildings or structures on acquired land,

including the cost of acquiring any lands to which buildings or structures may

be moved, site clearance, improvement, and preparation;

(d) Diverting highways, interchanges with highways, and access roads to private

property, including the cost of necessary land or easements;

(e) All machinery, furnishings, and equipment, communications facilities,

financing expenses, and interest prior to and during construction and for one

(1) year after completion of construction;

(f) Traffic estimates; indemnity, surety bonds, and premiums on i nsurance;

guarantees; engineering; feasibility studies; legal expenses; plans;

specifications; surveys; estimates of cost and revenues; and other expenses

necessary or incidental to determining the feasibility or practicability of

constructing a project;

(g) Other expenses as may be necessary or incidental to the construction of the

project and the financing of such construction; and

(h) Any obligation or expense incurred by any governmental agency or person for

surveys, borings, preparation of plans and sp ecifications, and other

engineering services, or any other cost described in this subsection, in

connection with the construction of a project, which may be regarded as part

of the cost of the project and reimbursed from revenues, taxes, or the proceeds

of bonds as authorized by KRS 184.350 to 184.395;

(9) "Credit enhancement facilities" means letters of credit; lines of credit; standby,

contingent, or firm securities purchase agreements; insurance, or surety

arrangements; guarantees, and other arrangements that provide for direct or

contingent payment of bond service charges, for security or additional security in

the event of nonpayment or default in respect of bonds, or for making payment of

bond service charges and at the option and on demand of bondhold ers or at the

option of the district or upon certain conditions occurring under put or similar

arrangements, or for otherwise supporting the credit or liquidity of the bonds, and

includes credit, reimbursement, marketing, remarketing, indexing, carrying, i nterest

rate hedge, and subrogation agreements, and other agreements and arrangements for

payment and reimbursement of the person providing the credit enhancement facility

and the security for that payment and reimbursement;

(10) "Financing expenses" means all costs and expenses relating to the authorization,

issuance, sale, delivery, authentication, deposit, custody, clearing, registration,

transfer, exchange, fractionalization, replacement, payment, and servicing of bonds,

including without limitation cos ts and expenses for or relating to publication and

printing, postage, delivery, preliminary and final official statements, offering

circulars, and informational statements, travel and transportation, underwriters,

placement agents, investment bankers, payi ng agents, registrars, authenticating

agents, remarketing agents, custodians, clearing agencies or corporations, securities

depositories, financial advisory services, certifications, audits, federal or state

regulatory agencies, accounting and computation services, legal services and

obtaining approving legal opinions and other legal opinions, credit ratings,

redemption premiums, and credit enhancement facilities;

(11) "Floating rate interest structure" means provisions in the bond proceedings whereby

the i nterest rate or rates payable on the bonds, or upon successive series of

commercial paper, vary from time -to-time pursuant to or in relation to an index

provided by an indexing agent or otherwise established, a formula, base, publicly

announced rate, yields on other obligations, determinations of an agent, or any one

(1) or combination of the foregoing, with or without approval or consent of the

absolute obligor or issuer as provided in the bond proceedings;

(12) "Governmental agency" means a department, di vision, or other unit of state

government; a county, city, municipal corporation or other political subdivision; a

regional transit authority or regional transit commission created under KRS Chapter

96A; a port authority created under KRS 65.510 to 65.650; and the United States or

any agency thereof;

(13) "Highway" has the same meaning as in KRS 189.010;

(14) "Indexing agent" means a person with responsibility for establishing, adjusting, and

maintaining an index of interest rates or yields for purposes of a floating rate

interest structure;

(15) "Interest rate hedge" means any arrangement:

(a) By which either:

1. The different interest costs or receipts at, between, or among fixed or

floating interest rates, including at different floating interest rates, a re

exchanged on stated amounts of bonds or investments, or on notional

amounts; or

2. A party will pay interest costs in excess of an agreed limitation; and

(b) Which also may include a requirement for the issuer to issue bonds at a future

date. This requ irement shall be deemed to be part of the bond proceedings at

the time the interest rate hedge is entered into. Issuance of bonds at a future

date shall not require further legislative action, but shall be a ministerial act;

(16) "Interest rate period" means that period of time during which an interest rate or rates

established under a floating rate interest structure will pertain, which periods may

be altered or become fixed pursuant to the bond proceedings upon stated

occurrences or upon determination of the absolute obligor or issuer;

(17) "Interstate system" means that portion of the interstate highway system, or the

national highway system, located within the Commonwealth;

(18) "Net revenues" means revenues lawfully available to pay both current operati ng

expenses of a district and bond service charges in any fiscal year or other specified

period, less current operating expenses of the district and any amount necessary to

maintain a working capital reserve for that period;

(19) "Outstanding," as applied to bonds, means outstanding in accordance with the terms

of the bonds and the applicable bond proceedings;

(20) "Owner" includes any person having any title or interest in any property authorized

to be acquired by a district under KRS 184.350 to 184.395

(21) "Pledged revenues" means net revenues, moneys and investments, and earnings on

those investments, in the applicable bond service fund and any other special funds,

and the proceeds of any bonds issued for the purpose of refunding prior bonds, all

as lawfully available and by resolution of the district committed for application as

pledged revenues to the payment of bond service charges on particular issues of

bonds;

(22) "Project" means:

(a) A highway or parking facility;

(b) Freight rail tracks and necessarily related freight rail facilities;

(c) Other transportation projects constructed or improved under KRS 184.350 to

184.395 and includes all bridges, tunnels, overpasses, underpasses,

interchanges, or approaches that are determined by the district to be necessary

for the safe merging of traffic between the project and those highways;

(d) Service facilities, and administration, storage, and other buildings, property,

and facilities, that the district considers necessary for the operation of the

project; and

(e) All property and rights that must be acquired by the district for the

construction, maintenance, or operation of the project;

(23) "Property" includes interests in property;

(24) "Put arrangement" means provisions in the bond proceedings under which holders

of the applicable bonds may exercise an option, or are required, to surrender the

bonds or their ownership for an amount of payment previously established in or

pursuant to the bond proceedings, at times, which may, but need not be, consistent

with the ends of interest rate periods and which may be altered with or without the

approval or consent, or upon the direction of, the absolute obligor or the issuer, as

provided for in the bond proceedings;

(25) "Refund" means to fund and retire outstanding bonds, including advance refunding

with or without payment or redemption prior to stated maturity;

(26) "Remarketing agent" means the person having responsibility for marketing or

remarketing commercial paper or bonds with put arrangements, which may include

responsibility for making recommendations or determinations as to prices or interest

rates;

(27) "Revenues" means:

(a) All moneys received by a district with respect to the lease, sub lease, or sale,

including installment sale, conditional sale, or sale under a lease -purchase

agreement, of a project;

(b) All moneys received by a district under an agreement pursuant to KRS

184.395;

(c) Any gift or grant received with respect to a project;

(d) All moneys received from increment bonds issued in accordance with the

establishment of a local development area under KRS 65.7041 to 65.7083;

and

(e) Proceeds of bonds issued under KRS 184.350 to 184.395 to the extent the use

thereof for payment of principal or of premium, if any, or interest on the bonds

is authorized by the district, proceeds from any insurance, condemnation, or

guaranty pertaining to a project or property mortgaged to secure bonds or

pertaining to the financing of a project, and i ncome and profit from the

investment of the proceeds of bonds or of any revenues;

(28) "Special funds" means the applicable bond service fund and any accounts and

subaccounts in that fund, any other funds or accounts permitted by, established

under, and id entified as a special fund or special account in the bond proceedings,

including any special fund or account established for purposes of rebate or other

requirements under federal income tax laws; and

(29) "Transportation improvement district" or "district " means a transportation

improvement district established pursuant to KRS 184.353.