KRS 65.4931: Extension of pilot program period for not more than 25 years -- Conditions

-- Reports.

(1) As used in this section:

(a) "Borrower" means the entity receiving the proceeds from a new bond issued

because of an extended tax increment financing agree ment allowed under

KRS 65.490(12);

(b) "Excess revenues" means all moneys which exceed the costs associated with

the borrower's operating expenses, capital expenditures, and the regularly

scheduled debt service on the bond; and

(c) "Term of the bond" shall begin on the date any current bonds are refinanced,

reissued, or restructured and shall end upon the earlier of the stated maturity

date of the bond or the payment in full of the bond.

(2) A pilot program may be extended for a period not to exceed an addi tional twenty-

five (25) years in connection with the issuance of a new bond by the Kentucky

Economic Development Finance Authority if the pilot program agreement contains

provisions requiring that:

(a) The borrower use all excess revenues to redeem the bon d prior to the stated

maturity date;

(b) 1. Once the bond is callable, the borrower apply all excess revenues to the

redemption of the bond prior to the stated maturity date at least every

thirty-six (36) months; and

2. If it is the position of the borrowe r that the application of all excess

revenues to the redemption of the bond prior to the stated maturity date

jeopardizes the project, the borrower shall present an alternative

payment plan for that thirty-six (36) month period to the Capital Projects

and Bond Oversight Committee for approval; and

(c) No further revenues under the pilot program be remitted to the borrower

following the end of the term of the bond.

(3) The borrower shall submit a report to the Governor and the Capital Projects and

Bond Oversight Committee on or before November 1, 2018, and annually thereafter

regarding the operations and financial condition of the borrower.