KRS 66.051: Purposes for issuance of bonds -- Principal amount maximum.

(1) An issuer may issue bonds for the purpose of providing funds with which:

(a) To fund floating indebtedness;

(b) To fund the cost of providing a public service if the governing body

determines that an emergency exists and the public health or safety so

requires;

(c) To fund unfunded liabilities;

(d) To establish a reserve for past or future liabilities or casualties; or

(e) To pay one (1) or more final judgments rendered against the issuer, including

settlements of claims approved by a court.

(2) The principal amount of the bonds issued may not exceed the amount required for

subsections (1)(a) to (e) of this section, plus financing costs, permitted by this

chapter to be paid from the proceeds of bonds, plus, in the case of judgments, costs,

and expenses assessed or taxed against the issue and defense costs of the issuer.