{"data":{"id":"us-ky/krs-154.20-560","jurisdiction":"us-ky","citation":"KRS 154.20-560","heading":"Restrictions on insurance commitment.","body":"The authority shall not recommend to the insurance corporation, and the insurance\ncorporation shall not approve the insurance of any loan or bond under its contract with the\nauthority, if the insurance of such loan or bond will result in a total commitment  by the\ninsurance corporation in excess of ten (10) times the amount in the trust account.  No\ninsurance commitment shall be made by the insurance corporation unless the authority\nhas made the following findings:\n(1) That the loan or bond is to be secured by a first mortgage of real or personal\nproperty or both satisfactory to the authority;\n(2) That the mortgagor and mortgagee are responsible parties;\n(3) That the occupant of the project or projects is a responsible occupant;\n(4) That the provisions of the  mortgage loan or bond are reasonable and proper, and in\nmaking such determination the authority may take into account such factors as it\ndeems relevant including, without limitation, the provisions for maintaining,\ninsuring and repairing the project by th e mortgagee and the remedies of the\nauthority or the insurance corporation upon default of the mortgagee;\n(5) That the project will provide employment having a reasonable relationship to the\nprincipal amount of the loan or bond issue to be insured therefor , taking into\naccount, among other things, the investment per employee of comparable facilities;\n(6) That adequate provision is being or will be made to meet any increased demand\nupon community public facilities that might result from the project;\n(7) That the size and scope of the project is such that a definite benefit to the economy\nof the Commonwealth may reasonably be expected to result from the construction\nor improvement thereof; and the employment created shall be substantially primary\nemployment;\n(8) That the principal amount of the loan or bond does not exceed ninety -five percent\n(95%) of the cost of the land, buildings, and improvements and eighty percent\n(80%) of the cost of the machinery and equipment;\n(9) That the duration of the loan or bond s hall not exceed thirty (30) years on land,\nbuildings and improvements exclusive of machinery and equipment, and fifteen\n(15) years on machinery and equipment; and that the authorization provisions are\nsatisfactory to the authority;\n(10) That the insurance  agreement provides for subrogation upon payment of insured\ndebt service from the trust account;\n(11) That the public interest is adequately protected by the terms of the loan or bond and\nof the insurance agreement;\n(12) That the insurance of the loan or b ond will not cause the insured debt service\ncoming due in any one (1) calendar year on account of an insured loan or bond for\nany one (1) mortgagor to exceed twenty percent (20%) of the amount in the trust\naccount when the finding is made; and\n(13) That th e insurance of the loan or bond will not cause the insured debt service\ncoming due in any one (1) calendar year on account of permanent guarantees to\nexceed one hundred percent (100%) of the amount in the mortgage insurance trust\nwhen the finding is made.\nThe authority shall consult with the appropriate local and regional planning agencies to\nascertain the relationship of a proposed project to any existing local or regional\ncomprehensive plan; that, so far as feasible, the project is to be located in an are a of\ngenerally high unemployment; and that employment opportunities will become available\nto the residents of such area.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2739","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:54Z","sha256":"325519945463e925303c91b6e498e9a2f1279a9f344733f9b5978eb2a3895485","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-550","next":"us-ky/krs-154.20-570"},"notice":"GroundRules: Original legal text. Not legal advice."}