KRS 80.230: Issuance of bonds by city authorities.

(1) Cities of all classes may provide funds for carrying out the purposes of this chapter

by the issuance of revenue bonds pursuant to a resolution of the housing authority.

The bonds or other obligations of a housing authority shall not constitute an

obligation of the city. The bonds shall be payable only out of the properties,

revenues, and assets of the housing authority. Nothing contained in this section shall

authorize or permit any city to incur any indebtedness of any kind or nature

prohibited by the Constitution. Subject to the restrictions set forth in this chapter, a

city housing authority may incur any indebtedness and issue any obligations and

give any security which it deems necessary or advisable in connection with any

project undertaken by it. A city housing authority may issue its bonds to provide for

the payment of its indebtedness from time to time in amounts, with maturities, upon

the terms and conditions and upon the security as the authority deems necessary or

advisable in connection with any project undertaken or to be undertaken by it. The

bonds shall be signed by the chairman of the authority or other agent designated by

the authority and by the mayor or by the presiding officer of the legislative body of

the city under the city's seal, attested by a finance officer of the city.

(2) A city housing authority may in connection with the borrowing of funds or

otherwise enter into agreements with the federal government providing for

supervision and control of the housing authority or any project and containing other

covenants, terms, and conditions as the housing authority deems advisable. In

connection with any loan by a government, a city housing authority is authorized to

agree to limitations upon the exercise of any of its powers.

(3) Bonds issued pursuant to this section shall have, in the hands of a bona fide holder,

all of the qualities of negotiable instruments. They shall be exempt from taxation by

the state and its political subdivisions. It shall be plainly stated on the face of each

bond that it has been issued under the provisions of this chapter and that it does not

constitute an indebtedness of the city within the meaning of any constitutional

provisions or limitations. In case any provisions are made for the redemption or

prepayment of any bonds before maturity, the provisions shall require that the bonds

to be redeemed or prepaid shall be selected by lot from the whole number of the

issue then outstanding. The bonds may be issued without any other proceedings or

conditions than those proceedings and conditions specified and required by this

chapter or by the Constitution.