KRS 341.612: Interest payment fund.

(1) There is created within the State Treasury a special fund for unemployment

insurance known as the interest payment fund which shall be administered separate

and apart from all public money or funds of the state.

(2) The unemployment insurance interest paym ent fund shall be used exclusively for

the purposes of payment of interest on advances under Title XII of the Social

Security Act received from the United States Department of Labor in support of the

unemployment insurance programs of the Commonwealth and repayment of money,

including any interest thereon, received from any source related to the payment of

interest on such advances. The secretary shall have full power, authority, and

jurisdiction over the fund, including all money, property, and securities belonging

thereto, except where specified otherwise in KRS 341.295, and he shall perform any

act necessary or convenient in the administration of the fund consistent with this

section.

(3) Any money collected for the purpose of paying interest on advances under Title XII

of the Social Security Act or repayment of money, including any interest thereon,

received from any source related to the payment of interest on such advances shall

be invested at interest in banks or other interest -bearing obligations of t he United

States of America. Investments shall at all times be made so that all the assets of the

unemployment insurance interest payment fund shall always be convertible into

cash when needed for the payment of interest on advances under Title XII of the

Social Security Act or repayment of money, including any interest thereon, received

from any source related to the payment of interest on advances. All interest income

received under this section shall be credited to the interest payment fund. The State

Treasurer shall dispose of securities or other property belonging to the

unemployment insurance interest payment fund only under the direction of the

secretary and the secretary of the Finance and Administration Cabinet.

(4) Any balance of money remaining in the unemployment insurance interest payment

fund after all interest due and owing on advances under Title XII of the Social

Security Act and repayment of money, including any interest thereon, received from

any source related to the payment of interest on advances have been paid shall be

credited on a proportional basis to the reserve account of each active subject

contributing employer.