KRS 58.440: Refinancing at higher rate than that of original issue.

If any public body shall determine:

(1) That financing of a public project may be accomplished to the best advantage in the

public interest only by combining the same with refinancing of previously issued

and outstanding public obligations at a rate or rates of interest higher than the rate or

rates otherwise applicable thereto;

(2) That refinancing of a public project at a higher interest rate or rates is necessary in

order to prevent or anticipate default in payment of interest or principal of public

obligations with regard thereto; or

(3) That any combination of the circumstances described in subsection (1) or (2) of this

section exists;

then such refinancing is recognized to be lawful; provided, however, that prior to any

such refinancing at a higher rat e or rates of interest, the issuing public body shall make

and spread at large upon its public records its determination that such action is necessary

or desirable in the public interest, and its reasons therefor.