KRS 66.527: Indebtedness of board, how secured -- Refunding of obligations --

Negotiability.

(1) The board may incur indebtedness, buy, lease, rent, sell, operate, manage, accept

gifts and grants, and do anything else necessary or proper to obtain for the county in

accordance with the board's plan the public improvements described therein. To

secure its obligations the board may pledge its assets subject to any prior pledges or

charges against them. The board may incur indebtedness the security for the

payment of w hich is a special fund rather than the unencumbered assets of the

board. The board may pledge its expected receipts from one or more sources to

secure payment of its various debts and obligations. The board may make such

covenants and agreements with its creditors as may be necessary or proper to reduce

the cost to the board of the indebtedness. Those covenants or agreements may

include arrangements for the operation of public improvements by trustees for the

benefit of creditors in the event of a default b y the board in the timely payment of

indebtedness.

(2) In addition to any method of refunding established by covenants in the board's

obligations, the board may for any indebtedness refund it in advance of its maturity

by borrowing against the same security as pledged for the original indebtedness and

substituting as security for the original indebtedness general obligations of the

United States or its agencies if (a) the principal and interest of the obligations of the

United States (or its agencies) are payable in time and sufficient in amount to defray

seasonably and fully the board's outstanding obligation on the original indebtedness,

and (b) the net annual interest cost of the indebtedness to the board will be reduced.

(3) Obligations of the board ma y be made negotiable. Except as otherwise provided

herein, the board's obligations shall be in the form established by KRS 58.010 to

58.140.