KRS 58.540: Power to issue revenue bonds for particular purposes -- Interim financing.

(1) The authority may provide for the issuance of revenue bonds to pay all or any part

of the cost of the acquisition of the properties of Churchill Downs or expenses

incident thereto referred to in KRS 58.510, or any part thereof or interest therein,

and secure the payment thereof by a lien on the properties acquired with the

proceeds of the bonds. The bonds shall bear interest at such rate not exceeding ten

percent (10%) per annum and shall mature at such time not exceeding fifteen (15)

years from their date, as may be provided by the authority, and may be made

redeemable before maturity, at the option of the authority, at a price not less than

the face amount thereof and accrued interest thereon. The proceeds of the bonds

shall be used solely for the pa yment of the cost of the acquisition of Churchill

Downs or expenses incident thereto, and shall be disbursed in such manner and

under such restrictions, if any, as the authority may provide in the proceedings

authorizing the issuance of the bonds or in the trust indenture securing the same.

(2) Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds

originally issued for the acquisition of Churchill Downs or expenses incident

thereto as provided for in subsection (1) of this section , may issue revenue bonds

payable solely from the charges, revenues, rentals and other funds pledged for their

payment, for the purpose of paying all or any part of the cost of the acquisition of

additional property, the reconstruction of improvements or the erection of additional

improvements, but such revenue bonds shall be subordinate to the revenue bonds

issued for the original acquisition of Churchill Downs or expenses incident thereto.

(3) Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds

originally issued for the acquisition of Churchill Downs or expenses incident

thereto as provided for in subsection (1) of this section, and for the acquisition of

additional property, the reconstruction of improvements or the erection of additional

improvements provided for in subsection (2) of this section, may issue revenue

bonds payable solely from the charges, revenues, rentals and other funds pledged

for their payment, for the purpose of paying all or any part of the cost of further

developing the museum at Churchill Downs and establishing a facility for the

exhibition of prior Kentucky Derby and other important races held at Churchill

Downs as aforesaid, but such revenue bonds shall be subordinate to any then

outstanding previously issued revenue bonds.

(4) The authority may agree to or establish any method of interim financing by the

authority during the acquisition of additional property, the reconstruction of

improvements or the erection of additional improvements hereinbefore pr ovided for

and in developing the museum at Churchill Downs and establishing a facility for the

exhibition of prior Kentucky Derby and other important races held at Churchill

Downs as aforesaid, with borrowed funds from any bank, trust company, or banking

institution, such borrowings to be paid from earnings or through the sale of revenue

bonds before, during or at completion of such project, but such revenue bonds shall

be subordinate to any then outstanding previously issued revenue bonds; and the

interest rates, maturities and other provisions shall be such as the authority may at

the time of issuance deem to be proper.

(5) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be

less than the cost for which issued, additional bonds may in like manner be issued to

provide the amount of the deficit, and, unless otherwise provided in the proceedings

authorizing the issuance of the bonds or in the trust indenture securing the same,

shall be deemed to be of the same issue and sha ll be entitled to payment from the

same fund without preference or priority of the bonds first issued. If the proceeds of

the bonds of any issue exceed such cost, the surplus shall be deposited to the credit

of the sinking fund for such bonds or any account therein as the authority shall have

provided in the proceedings or trust indenture authorizing and securing the bonds.

(6) Prior to the preparation of definitive bonds, the authority may, under like

restrictions, issue interim receipts or temporary bon ds, with or without coupons,

exchangeable for definitive bonds when such bonds have been executed and are

available for delivery. The authority may also provide for the replacement of any

bonds that become mutilated or are destroyed or lost.