KRS 269.010: Issue of refunding bonds for drainage, levee, or reclamation district --

Maturity -- Interest rate -- Exchange of bonds or sale -- Use of proceeds.

(1) Whenever the board of drainage commissioners or other governing authority of any

drainage, levee, o r reclamation district organized under any law of this state finds

and declares of record that it is advisable and for the best interests of the property

owners of the district to refund any part of the bonded indebtedness of the district, it

may issue ref unding bonds, payable at any time within forty (40) years from their

date as the board or governing authority may determine. The refunding bonds shall

not exceed the amount of bonds refunded and interest accrued on the bonds to the

date of the refunding bo nds. They shall bear interest at a rate or rates or method of

determining rates as the board determines and be payable at least annually.

(2) When issued, refunding bonds may be exchanged for the outstanding bonds if the

holders of the bonds agree, or the refunding bonds may be sold for not less than the

par value and accrued interest. The proceeds of the sale of the bonds shall be used in

the payment of the outstanding bonds and the cost incident to the issuing of the

refunding bonds. No refunding bond sha ll become a valid obligation of the district

until an equivalent amount of the bonds refunded have been surrendered and

canceled. Until refunding bonds have been issued, the rate of tax or amount of

assessment applicable to the bonds to be refunded shall not be reduced.