KRS 96.800: Use of proceeds from sale of bonds.

All moneys received from the sale and issuance of bonds shall be used solely to defray

the cost of acquiring or improving an electric plant, except that such proceeds may in the

discretion of the board also be used for the payment of the interest on the bonds until such

acquisition and improvement is completed and for a period of not more than eighteen (18)

months thereafter. The cost of the electric plant shall include all costs of acquisition or

improvement, including all preliminary expenses described in KRS 96.730; the cost of

acquiring all property, franchises, easements, and rights which, in the judgment of the

board, are necessary or convenient; engineering and legal expenses; expenses for

estimates of cost and revenues; expenses for plans, specificat ions and surveys; other

expenses incident or necessary to determining the feasibility or practicability of the

enterprise; administrative expense; and such other expense as may be incurred in the

financing herein authorized, the acquisition or improvement of the electric plant, the

placing of such plant in operation, including the creation of a cash working fund, and the

performance of the things herein required or permitted in connection therewith.