KRS 58.050: Application of proceeds of bonds -- Supplementation by contributions of

issuing agency.

All money received from the bonds shall be applied solely for the acquisition,

construction, maintenance or improvement of the public project, and the necessary

expense of preparing, printing and selling said bonds, or to advance the payment of the

interest on the bonds during the first three (3) years following the date of the bonds, or to

provide an initial debt service reserve; and the proceeds of such bonds may b e

supplemented by contributions from the issuing governmental agency or from any other

source toward the cost of construction of the project or toward the creation of a debt

service reserve for the protection and benefit of the bondholders, or for any othe r purpose

related to the financing of the acquisition and construction of such public project; and it

may be further provided that any contribution made for the purpose of assisting in the

initial establishment of a debt service reserve for the benefit and protection of the

bondholders may be returned or reimbursed to the contributor thereof whenever other

equivalent funds have been provided from the revenues of said project or from any other

source toward the establishment of such debt service reserve.