{"data":{"id":"us-ky/krs-151.658","jurisdiction":"us-ky","citation":"KRS 151.658","heading":"Bonding authority and procedures.","body":"(1) The authority may issue its bonds from time to time for the purpose of paying in\nwhole or in part the cost of acquiring lands and interests therein and of constructing\nfacilities and improvements subject to the limitations and conditions provided in\nKRS 151.650 to 151.664. Any resolution of the board authorizing the sale of bonds\nshall be submitted to the state funding board established by Tennessee statute and\nshall become effective only upon approval by that board. If the board refuses\napproval, it shall state in writing the reasons for the action.\n(2) Except as otherwise expressly provided in this section, all bonds issued by the\nauthority shall be payable solely out of the revenues and receipts derived from the\nauthority's projects or of any as may be de signated in the proceeding of the board\nunder which the bonds are authorized to be issued, including debt obligations of the\nlessee or contracting party obtained from or in connection with the financing of a\nproject. Notes issued in anticipation of the iss uance of bonds may be retired out of\nthe proceeds of the bonds. The bonds may be executed and delivered by the\nauthority at any time and from time to time, may be in the form and denominations\nand of the terms and maturities, may be in registered or bearer  form either as to\nprincipal or interest or both, may be payable in the installments and at the time or\ntimes not exceeding forty (40) years from the date thereof, may be payable at the\nplace or places whether within or without the state, may bear interest  at the rate or\nrates payable at the time or times and at the place or places and evidenced in the\nmanner, may be executed by the officers of the authority, and may contain the\nprovisions not inconsistent herewith, as shall be provided in the proceedings o f the\nboard under which the bonds are authorized to be issued. If deemed advisable by the\nboard, there may be retained in the proceedings under which any bonds of the\nauthority are authorized to be issued an option to redeem all or any part thereof as\nspecified in the proceedings, at the price or prices and after the notice or notices and\non the terms and conditions as set forth in the proceedings, and as briefly recited on\nthe face of the bonds, but nothing herein contained shall be construed to confer on\nthe authority any right or option to redeem any bonds except as provided in the\nproceedings under which they are issued. Any bonds of the authority may be sold at\npublic or private sale in the manner, at the price, and from time to time, as\ndetermined by t he board to be most advantageous, and the authority may pay all\nexpenses, premiums, and commissions which its board deems necessary or\nadvantageous in connection with the issuance thereof. Issuance by the board of one\n(1) or more series of bonds for one (1 ) or more purposes shall not preclude it from\nissuing other bonds in connection with the same project or any other project, but the\nproceedings under which any subsequent bonds may be issued shall recognize and\nprotect any prior pledge or mortgage made for any prior issue of bonds. Proceeds of\nbonds issued by the authority may be used for the purpose of constructing,\nacquiring, reconstructing, improving, equipping, furnishing, bettering, or extending\nany project or projects as authorized by KRS 151.650 to 1 51.664, including the\npayment of interest on the bonds during construction of any project and for two (2)\nyears after the estimated date of completion, and payment of engineering, fiscal,\narchitectural, and legal expenses incurred in connection with the pr oject and the\nissuance of the bonds and the establishment of a reasonable reserve fund for the\npayment of principal of and interest on the bonds in the event of a deficiency in the\nrevenues and receipts available for the payment.\n(3) Any bonds or notes of the authority at any time outstanding may at any time and\nfrom time to time be refunded by the authority by the issuance of its refunding\nbonds in the amount the board deems necessary, but not exceeding the sum of the\nfollowing:\n(a) The principal amount of the obligations being refinanced;\n(b) Applicable redemption premiums thereon;\n(c) Unpaid interest on the obligations to the date of delivery or exchange of the\nrefunding bonds.\nIf the proceeds from the sale of the refunding bonds are to be deposited in t rust,\ninterest shall accrue on obligations from the date of delivery to the first or any\nsubsequent available redemption date or dates selected, in its discretion, by the\nboard or to the date or dates of maturity, whichever shall be determined by the\nboard to be most advantageous or necessary to the authority;\n(d) A reasonable reserve for the payment of principal of and interest on the bonds\nand a renewal and replacement reserve;\n(e) If the project to be constructed from the proceeds of the obligations bein g\nrefinanced has not been completed, an amount sufficient to meet the interest\ncharges on the refunding bonds during the construction of the project and for\ntwo (2) years after the estimated date of completion, but only to the extent that\ninterest charges have not been capitalized from the proceeds of the obligations\nbeing refinanced; and\n(f) Expenses, premiums, and commissions of the authority, including bond\ndiscounts, deemed by the board to be necessary for the issuance of the\nrefunding bonds. A determin ation by the board that any refinancing is\nadvantageous or necessary to the authority, that any of the amounts provided\nin the preceding sentence should be included in such refinancing, or that any\nof the obligations to be refinanced should be called for r edemption on the first\nor any subsequent available redemption date permitted to remain outstanding\nuntil their respective dates of maturity, shall be conclusive.\n(4) Any refund may be made whether the obligations to be refunded shall have then\nmatured or s hall thereafter mature, either by the exchange of the refunding bonds\nfor the obligations to be refunded thereby with the consent of the holders of the\nobligations so to be refunded, or by sale of the refunding bonds and the applications\nof the proceeds thereof to the payment of the obligations to be refunded thereby, and\nregardless of whether or not the obligations proposed to be refunded shall be\npayable on the same date or different dates or shall be due serially or otherwise.\n(5) Prior to issuance of the refunding bonds, the board shall cause notice of its intention\nto issue the refunding bonds, identifying the obligations proposed to be refunded\nand setting forth the estimated date of delivery of the refunding bonds, to be given\nto the holders of the re funding bonds, to be given to the holders of the outstanding\nobligations by publication of an appropriate notice one (1) time each in a newspaper\nhaving general circulation in the area and in a financial newspaper published in\nNew York, New York, and havin g national circulation. As soon as practicable after\nthe delivery of the refunding bonds, and whether or not any of the obligations to be\nrefunded are to be called for redemption, the board shall cause notice of the\nissuance of the refunding bonds to be given in the manner provided in the preceding\nsentence.\n(6) If any of the obligations to be refunded are to be called for redemption, the board\nshall cause notice of redemption to be given in the manner required by the\nproceedings authorizing the outstanding obligations.\n(7) The principal proceeds from the sale of any refunding bonds shall be applied only as\nfollows:\n(a) To the immediate payment and retirement of the obligations being refunded;\nor\n(b) To the extent not required for the immediate payment of the obligations being\nrefunded, the proceeds shall be deposited in trust to provide for the payment\nand retirement of the obligations being refunded, and to pay any expenses\nincurred in connection wit h the refunding, but provision may be made for the\npledging and disposition of any surplus, including without limitation,\nprovision for the pledging of any surplus to the payment of the principal of\nand interest on any issue or series of refunding bonds. Money in any trust fund\nmay be invested in direct obligations of, or obligations the principal of and\ninterest on which are guaranteed, by the United States government, or\nobligations of any agency or instrumentality of the United States government,\nor in c ertificates of deposit issued by a bank or trust company located in the\nState of Kentucky if the certificates shall be secured by a pledge of any\nobligations having any aggregate market value, exclusive of accrued interest,\nequal at least to the principal amount of the certificates so secured. Nothing\nherein shall be construed as a limitation on the duration of any deposit in trust\nfor the retirement of obligations being refunded which shall not have matured\nand which shall not be presently redeemable or, i f presently redeemable, shall\nnot have been called for redemption.\n(8) All bonds, refunding bonds, and the interest coupons applicable thereto shall be\nconstrued to be negotiable instruments.\n(9) The principal of and interest on any bonds issued by the aut hority may be secured\nby a pledge of the revenues and receipts out of which the same shall be made\npayable, and may be secured by a mortgage or deed of trust covering all or any part\nof the projects from which the revenues or receipts so pledged may be der ived,\nincluding any enlargements of and additions to any projects thereafter made, or by\nan assignment and pledge of all or any part of the authority's interest in and rights\nunder the leases, sale contracts, or loan agreements relating to the projects, or  any\nthereof. The resolution under which the bonds are authorized to be issued and any\nmortgage or deed of trust may contain any agreements and provisions respecting the\nmaintenance of the projects covered thereby, the fixing and collection of rents or\npayments with respect to any projects or portions thereof covered by the resolution,\nmortgage, or deed of trust, the creation and maintenance of special funds from the\nrevenues and from proceeds of the bonds, and the rights and remedies available in\nthe event of default, as the board shall deem advisable and not in conflict with the\nprovisions of KRS 151.650 to 151.664. Each pledge, agreement, mortgage, and\ndeed of trust made for the benefit of security of any of the bonds of the authority\nshall continue effec tive until the principal of and interest on the bonds for the\nbenefit of which the same were made shall have been fully paid.","path":["KRS Chapter 151"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2155","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:46Z","sha256":"7d1ab9aa2fc0bedfcd9146d55877c9eaa8ce9ff7bc3b5da6243e5b3488fa234f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-151.656","next":"us-ky/krs-151.660"},"notice":"GroundRules: Original legal text. Not legal advice."}