KRS 220.500: Subsequent issue of bonds for additions and improvements.

A sanitation district acquiring any sanitary works under the provisions of KRS 220.010 to

220.520 may provide for the extension, addition or improvement of the works by an

additional issue or issues of bonds, in the same manner as for the original bonds. S uch

bonds shall be junior in standing to the bonds of the original issue, and shall constitute a

second lien upon the revenues of the district, secured by a second statutory mortgage lien

upon the property of the district, and an additional bond and intere st payment fund shall

be established by resolution at the time of the issuance of such second lien bonds. Any

surplus of funds that would otherwise be placed in the depreciation account shall be

placed in the bond and interest payment fund for the payment of the principal and interest

of such second lien bonds. The rates for services charged to the users of the works of the

district may be increased to provide the additional revenue necessary to amortize such

second lien bonds.