KRS 353.408: Issuance of bonds for benefit of authority.

(1) Bonds shall be issued by a gas acquisition authority pursuant to KRS 65.270 and

this section, provided that, notwithstanding the provisions of KRS 65.270 or any

other provision of law, the authority:

(a) May issue notes in anticipation of the issuance of b onds, issue bonds for one

(1) or more projects and purposes, and issue bonds to refund bonds previously

issued;

(b) May issue bonds in one (1) or more series that mature not more than forty (40)

years from their date and are subject to redemption or tender for purchase by

the owners thereof at such times, upon such terms and at such prices as are set

forth in the proceedings authorizing their issuance;

(c) May issue and secure its bonds pursuant to a bond resolution, trust indenture,

or other security instr ument approved by its governing body, establish and

fund from bond proceeds or its revenues and reserves as it shall deem

necessary or desirable, and enter into such covenants and agreements with the

owners of the bonds as shall be necessary to secure the same;

(d) May sell its bonds at public or private sale in such manner, at such price, and

upon such terms as shall be determined by its governing body;

(e) May, in connection with its bonds, enter into contracts for bond insurance,

surety bonds, bond ratin gs, letters of credit, and other forms of credit

enhancement, lines of credit, trustee and paying agent services, standby bond

purchase agreements and other liquidity facilities, and bond remarketing

agreements, reimbursement agreements, interest rate swap , exchange, cap, or

collar contracts, forward delivery contracts, all as approved by its governing

body; and

(f) Shall take all actions necessary to authorize, issue, and secure its bonds, and

no actions shall be required to be taken under KRS 65.270 by th e municipal

utilities that created the authority.

(2) Bonds issued by a gas acquisition authority shall be fully negotiable for all

purposes. Any lien, pledge, or other security interest created by an authority to

secure its obligations is valid, binding, perfected, and enforceable on and after the

effective date of the bond resolution, trust indenture, or other security instrument

under which it is created, and no physical delivery, filing, or recording shall be

required to perfect the same under the Unifo rm Commercial Code or otherwise. An

authority may, but shall not be required to, publish any of its proceedings in

connection with the issuance of bonds.

(3) Bonds issued by a gas acquisition authority shall constitute an obligation of only the

authority, shall be payable solely from the property, revenue, and income pledged

for their payment, and shall not constitute an indebtedness, liability, or obligation of

the municipal utilities that created the authority, the Commonwealth, or any

political subdivision thereof other than the authority.