KRS 220.370: Borrowing money for preliminary expense.

To facilitate the preliminary work and payment of that work, the board of directors may

borrow money for the district at a rate or rates or method of determining rates as they may

determine, and may issue and sell, or deliver directly to its creditors, neg otiable warrants

signed for the district by the members of the board of directors. The board may pledge the

preliminary tax authorized by KRS 220.360, less a reasonable allowance for interest, after

the tax has been levied, for the repayment of the warrant s. If any warrant is presented for

payment and is not paid for want of funds in the Treasury, that fact, with the date of

refusal to pay, shall be indorsed on the back of the warrant, and the warrant shall then

draw interest at the rate or rates or method of determining rates set out in this section until

there is money on hand, derived from the tax levy, sufficient to pay the amount of the

warrant with interest.