{"data":{"id":"us-ky/krs-103.220","jurisdiction":"us-ky","citation":"KRS 103.220","heading":"Interest on bonds -- Terms -- Approval -- Marketing -- Refunding.","body":"(1) The bonds may be issued to bear interest at any rate or rates, either fixed or variable,\nin accordance with such method as shall be set by the governing body of the issuer,\npayable either annually or at shorter intervals, may be of such terms and maturitie s,\nmay bear such conversion privileges, may be executed by the manual or facsimile\nsignatures of such officers of the issuer and shall be executed in such manner and at\nsuch time or times or from time to time and be payable at such times not exceeding\nforty (40) years from the date thereof, or if commercial paper, from the date of\nissuance thereof, and at such place or places as the governing body of the issuer\ndetermines.\n(2) The bonds may provide that they or any of them may be called for redemption prior\nto maturity under conditions set by the governing body of the issuer before issuing\nthe bonds.\n(3) (a) Any bonds issued and outstanding hereunder may, at any time on or after the\nearliest redemption date provided therefor at the time of their issuance, be\nrefunded by the issuer or any other city, county or authority, with the consent\nof the lessee, industrial concern or utility company, in such amount as the\ngoverning body may deem necessary to refund the principal of the bonds to be\nrefunded, together wit h any unpaid interest thereon, to create any necessary\ndebt service reserve fund, and to pay the costs of any improvements or\nadditions to the project, and of any premiums, expenses and commissions\nrequired to be paid in connection therewith. Any refunding bonds issued under\nthe authority of this section shall be payable from the revenues out of which\nthe bonds to be refunded were payable.\n(b) At the time of the initial issuance of the bonds, the issuer may designate\nindividual officials of its governing bo dy as agent for purposes of approving\nthe principal amount, the interest rate, the discount, if any, and the maturity\ndate of bonds being issued later to refund the maturing bonds; provided,\nhowever, that, at the time of the initial issuance of such bonds,  the governing\nbody of the issuer shall set the maximum principal amount, the maximum\ninterest rate, and the maximum discount, if any, of the refunding bonds plus\nthe final maturity date of the last issue of such refunding bonds; and provided\nfurther that the issuer shall retain the right to revoke any such agent's authority\nat any time and for any reason whatsoever. Individual issues of commercial\npaper, issued as part of a continuing financing program, may be refunded by\nthe approvals of such agent of the issuer and separate proceedings of the issuer\npursuant to KRS 103.210 shall not be required.\n(c) At the time of issuance of bonds which bear interest at a variable rate or rates,\nthe governing body of the issuer may designate individuals or institutions who\nin the sole judgment of such governing body have financial market expertise\nto serve as agent for the issuer for establishing and changing from time to time\nwhile such bonds remain outstanding the rate of interest to be borne by and\nthe price to be paid  for the bonds; provided, however, that the rate -setting\nprocedures and authority of each such agent shall be set forth in writing, and\nmay include a formula or an index or indices based upon market factors, and\nshall be established by the issuer at the ti me of issuance of such bonds; and\nprovided further that at the time of the issuance of the bonds, the governing\nbody of the issuer shall establish the maximum interest rate to be borne by the\nbonds; and provided further that the issuer shall retain the rig ht to remove or\nreplace any such agent at any time and for any reason whatsoever.\n(4) Any bonds issued and outstanding hereunder and the coupons appertaining to such\nbonds shall prior to the maturity or redemption date thereof be deemed to have been\npaid to the same extent as if they had actually been paid in cash and retired, if:\n(a) In case any of such bonds are to be redeemed on any date prior to their\nmaturity, the issuer of such bonds shall have given a trustee appointed for the\nholders of such bonds i n connection with their issuance, in form satisfactory\nto such trustee and in conformity with the requirements of the ordinance or\nresolution authorizing their issuance, irrevocable instructions to give notice of\nredemption of such bonds to the holders the reof by publication or by other\nmethod which is satisfactory to such trustee;\n(b) There shall have been deposited with the trustee either money in an amount\nwhich shall be sufficient, or direct obligations of or obligations guaranteed by\nthe United States of America, the principal of and the interest on which, when\ndue, will provide money which, together with the money, if any, deposited\nwith the trustee at the same time, shall be sufficient to pay when due the\nprincipal and the interest due and to become d ue on such bonds on and prior\nto redemption date or maturity date thereof, as the case may be; and\n(c) In the event that such bonds are not to be redeemed within the next succeeding\nsixty (60) days, the issuer shall have given the trustee in form satisfact ory to it\nirrevocable instructions to give, as soon as practicable, in a manner\nsatisfactory to it, a notice to the holders of such bonds and coupons that the\ndeposit required by paragraph (b) of this subsection has been made with the\ntrustee, that such bo nds and coupons are deemed to have been paid in\naccordance with the provisions hereof and stating such maturity or redemption\ndate upon which money is to be available for the payment of the principal of\nand interest on such bonds. Any deposits made under p aragraph (b) of this\nsubsection, to the extent not secured by the Federal Deposit Insurance\nCorporation, shall be secured by the pledging of direct obligations of or\nobligations guaranteed by the United States of America.\n(5) It is hereby declared and dete rmined that the issuance of any and all refunding\nbonds as provided herein will be for a public purpose if the legislative body of the\nissuer authorizing such bonds so declares in the proceedings authorizing same, it\nbeing hereby declared and determined th at the ability of any domestic or foreign\ncorporation renting or leasing any facilities financed by the bonds to cause\nrefunding bonds to be issued will be an inducement for such domestic or foreign\ncorporation to establish in Kentucky the facilities provi ded for in KRS 103.210 and\nwill tend to further the purposes of KRS 103.200 to 103.285.\n(6) No bonds shall be issued hereunder in violation of federal statutes or regulations\nprohibiting arbitrage profits.","path":["KRS Chapter 103"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50296","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:07Z","sha256":"7a6df6ecd44613669f341cdf0583bb547d398070a1037ca9a5a1af9ef573c098","source_id":"us-ky","stale":false,"prev":"us-ky/krs-103.215","next":"us-ky/krs-103.230"},"notice":"GroundRules: Original legal text. Not legal advice."}