KRS 198A.090: Corporate authorization and operation of revenue bond financing --

Approval of General Assembly required for certain bond or note issuances.

(1) Except as provided in subsection (6) of this section, the corporation may provide for

the issuance, at one (1) time or from time to time, of bonds of the corporation if the

cumulative outstanding indebtedness of the corporation's bonds does not exceed

five billion dollars ($5,000,000,000), in order to carry out and effectuate its

corporate purposes and powers.

(2) In anticipation of the issuance of bonds, the corporation may provide for the

issuance, at one (1) time or from time to time, of bond anticipation notes. The

principal of and the interest on the bonds or notes shall be payable solely from the

funds provided for the payment. Notes may be made payable from the proceeds of

bonds or renewal notes or, if bond or renewal note proceeds are not available, notes

may be paid from any available revenues or assets of the corporation.

(3) The bonds or notes of each issue shall be dated and may be made redeemable before

maturity at the option of the corporation at a price and under terms and conditions

determined by the corporation. Bonds or notes shall bear interest at a rate

determined by the corporation. Notes sh all mature at a time not exceeding ten (10)

years from their date and bonds shall mature at a time not exceeding forty (40) years

from their date, as determined by the corporation. The corporation shall determine

the form and manner of execution of the bon ds or notes, including any interest

coupons to be attached thereto, and shall fix the denomination and the place of

payment of principal and interest, which may be any bank or trust company within

or without the Commonwealth. If an officer whose signature or a facsimile of

whose signature appears on any bonds, notes, or coupons attached to them shall

cease to be an officer before the delivery thereof, the signature or facsimile shall be

valid and sufficient for all purposes as if he had remained in office u ntil delivery.

The corporation may provide for the authentication of the bonds or notes by a

trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered

form, or both, as the corporation may determine, and provision may be made for the

registration of any coupon bonds or notes as to principal alone and also as to both

principal and interest, and for the reconversion into coupon bonds or notes of any

bonds or notes registered as to both principal and interest, and for the interchange of

registered and coupon bonds or notes. Upon the approval of a resolution of the

corporation, authorizing the sale of its bonds or notes, the bonds or notes may be

sold in a manner, either at public or private sale, and for a price the corporation

shall determine to be for the best interest of the corporation and best effectuate the

purposes of this chapter, if the sale is approved by the corporation.

(4) The proceeds of any bonds or notes shall be used solely for the purposes for which

they are issued an d shall be disbursed in the manner and under the restrictions, if

any, the corporation may provide in the resolution authorizing the issuance of bonds

or notes or in the trust agreement securing the same.

(5) Prior to the preparation of definitive bonds, t he corporation may, under like

restrictions, issue interim receipts or temporary bonds, with or without coupons,

exchangeable for definitive bonds when the bonds have been executed and are

available for delivery. The corporation may also provide for the re placement of any

bonds or notes which become mutilated, destroyed, or lost.

(6) (a) Prior to the issuance of any bonds or notes that are not secured by:

1. Direct obligations or obligations guaranteed by the United States of

America; or

2. Obligations of f ederal agencies to the extent that the obligations are

backed by the full faith and credit of the United States of America; or

3. Repurchase agreements with any primary dealer in securities fully

secured by obligations described in subparagraphs 1. and 2. of this

paragraph if the market value of the security is maintained at one

hundred three percent (103%) of the principal amount of the repurchase

agreement and the security is held by an independent third -party

custodian financial institution; or

4. Insured or guaranteed construction loans or mortgage loans as defined

by KRS 198A.010(10) and (11); or

5. Guaranty insurance policies which guarantee payment of the principal

and interest on the bonds issued by a nationally recognized entity

authorized to issue guarantees and rated in the highest rating category by

at least one (1) of the nationally recognized rating services;

the corporation shall obtain the approval of the issuance from the General

Assembly in accordance with the provisions of KRS 56.870(1), u nless the

provisions of paragraph (b) of this subsection apply. This requirement shall

not apply to refunding bond or note issues which are for the purpose of

achieving debt service savings and which do not extend the term of the

refunded bonds or notes.

(b) The corporation may provide for the issuance, at any one (1) time or from

time to time, of bonds which do not satisfy the requirements of paragraph (a)

of this subsection without approval of the issuance by the General Assembly if

the cumulative outstanding indebtedness of the corporation that does not meet

the requirements of paragraph (a) of this subsection does not exceed thirty

million dollars ($30,000,000).

(c) The corporation shall annually report on its housing and bonding programs to

the Interim Joint Committee on Appropriations and Revenue.

(7) The Finance and Administration Cabinet shall provide to the corporation fiscal

consultant services regarding revenue bond management as necessary.