KRS 65.688: Special fund for outstanding increment bonds.

For any development area for which increments do not include revenues from the

Commonwealth, while increment bonds are outstanding, the issuer shall maintain a

special fund which shall be pledged for the retirement of those increment bonds. Officials

charged with collecting revenues in the development area shall, for each year a grant

contract is in effect or any increment bonds are outstanding with respect to a development

area, determine the amount of increments from the development area which they are

charged with collecting and submit those increments for deposit in the special fund

established by the governing body for that development area. Funds deposited in a special

fund for the payment of increment bonds shall be disbursed at the times and in the

amounts required to pay debt charges on those increment bonds. Accrued interest from

the sale of increment bonds shall be deposited in the special fund pledged to the payment

of those bonds. Amounts in a special fund which exceed the amount required to pay debt

charges on related increment bonds in any fiscal year may accumulate in the special fund

for the payment of future debt charges or to pay the costs of additional projects in the

development area, or may be transferred by the governing body from the sp ecial fund

under the terms of a grant contract or used for any lawful purpose.