KRS 66.111: Tax levy and budget appropriation to pay bond debt charges.

(1) After the issuance of bonds, the issuer shall levy a tax in a sufficient amount and

appropriate in its annual budget, together with any other moneys available to the

issuer, an amount of funds sufficient to pay the debt charges on the bonds.

(2) If the iss uer determines it to be necessary or appropriate, and if not prohibited by

other law, proceedings relating to the bonds may contain or provide for any one (1)

or more or combination of the following:

(a) The pledge to the payment of debt charges and relate d covenants to levy,

charge, collect, deposit, and apply, receipts of the issuer, referred to in this

subsection as pledged receipts, including, without limitation, ad valorem

property taxes as permitted by law; occupational license fees; insurance

premium taxes; excises, utility and service revenues; and any other receipts

from taxes, excises, permits, licenses, fines, or other sources of revenue of, or

of revenue distributions to, the issuer; and covenants for the establishment,

investment, segregation, a nd maintenance of any funds or reserves in

connection with the bonds. No pledge or covenant may be made that impairs

the express contract rights of the holders of outstanding bonds of the issuer.

(b) Covenants of the issuer and other provisions to protect and safeguard the

security and rights of the holders of the bonds and of the providers of any

credit enhancement facilities and provisions for defeasance.

(c) Rights and remedies of the holders of bonds, in addition to any other rights

and remedies under law, but subject to the terms of the proceedings and of any

credit enhancement facility.

(d) The costs of or payments under credit enhancement facilities may be paid

from any moneys of the issuer. The credit enhancement facility may be for the

benefit of holders of the particular bonds and of any other bonds of the issuer.

(3) Moneys and investments held by the issuer or on behalf of the issuer, and all

receipts of the issuer, needed and allocated to payment of debt charges or payments

by the issuer under cr edit enhancement facilities, are property of the issuer devoted

to essential governmental purposes, and, accordingly shall not be applied to any

purpose other than as provided in this chapter and in the legislation authorizing the

bonds, and shall not be s ubject to any order, judgment, lien, execution, attachment,

set-off, or counterclaim by any creditor or judgment creditor, as a result of a tort

judgment or otherwise, against the issuer other than the holders of the bonds or the

provider of the credit enh ancement facility who are entitled thereto pursuant to this

chapter and the legislation or proceedings.