KRS 65.270: Revenue bonds.

(1) Whenever any two (2) or more public agencies, as defined in KRS 65.230, enter

into an agreement for joint or cooperative action pursuant to the provisions of KRS

65.210 to 65.300, any public agency acting separately or jointly with one (1) or

more of any o ther public agencies, may acquire, construct, maintain, add to, and

improve the necessary property, real and personal, which is required in order to

perform the functions under the agreement, and for the purpose of defraying the

costs incident to the perfo rmance of the agreement, may borrow money and issue

negotiable revenue bonds.

(2) Any public agency or agencies may borrow money and issue bonds under this

section pursuant to an order, resolution, or ordinance of its or their legislative or

administrative body or bodies, which order, resolution, or ordinance shall set forth

the terms of the agreement in full, the amount of the revenue bonds to be issued,

and the maximum rate of interest. In every instance the order, resolution, or

ordinance shall provide t hat the joint or cooperative action is being undertaken

pursuant to the provisions of KRS 65.210 to 65.300.

(3) The bonds may be issued to bear interest at a rate or rates or method of determining

rates as the public agency or agencies determines, payable at the times and at a place

or places as the public agency or agencies determines.

(4) The bonds may provide that they or any of them may be called for redemption prior

to maturity.

(5) Any public agency is empowered to accept donations or gifts to the joi nt or

cooperative action from any source and to accept appropriations and grants to the

joint or cooperative action from the federal government or its agencies and

appropriations from the state or any county, city, or other political subdivision and,

at th e option of the public agency or agencies, to pledge any donations, gifts, or

appropriations to the payment of revenue bonds issued to finance the cost of a joint

or cooperative action.

(6) Bonds issued pursuant to this section shall be negotiable and shal l not be subject to

taxation. If any officer whose signature or countersignature appears on the bonds or

coupons ceases to be an officer before delivery of the bonds, his signature or

countersignature shall be valid and sufficient for all purposes the same as if he had

remained in office until delivery. The bonds shall be sold in a manner and upon

terms as the public agency or agencies deem best. The bonds shall be payable solely

from the revenue derived from the joint or cooperative action and shall not

constitute an indebtedness of the state, county, city, or political subdivision. It shall

be plainly stated on the face of each bond that it has been issued under the

provisions of KRS 65.210 to 65.300.

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

construction, maintenance, improvement, or operation of the joint or cooperative

action, and the necessary expense of preparing, printing, and selling the bonds, or to

advance the payment of interest on the bonds during the firs t three (3) years

following the date of the issuance of the bonds.

(8) The rents, royalties, fees, rates, and charges for the service or sale of the joint or

cooperative action shall be fixed and revised from time to time so as to be sufficient

to provide for the payment of interest upon all bonds and to create a sinking fund to

pay the principal of the bonds when due, and to provide for the operation and

maintenance of the joint or cooperative action and an adequate depreciation

account.