{"data":{"id":"us-ky/krs-160.599","jurisdiction":"us-ky","citation":"KRS 160.599","heading":"Emergency loans to public common school districts.","body":"(1) A special fund is hereby created which shall be known as \"the emergency revolving\nschool loan fund account,\" hereinafter referred to as account. This account, which\nshall be administered by the Kentucky Board of Education, is for the purpose of\nproviding emergency loans to eligible public common school districts.\n(2) In order to be eligible for a loan from the account, a school district shall meet all of\nthe following conditions:\n(a) A loss of physical facilities must have been suffered as a result of a fir e or a\nnatural disaster;\n(b) Insurance on such facilities was insufficient to replace the loss;\n(c) The district is bonded to practical capacity and has insufficient resources to\nmeet its immediate capital outlay needs as determined by an investigation of\nthe chief state school officer.\n(3) As an alternative to the criteria in subsection (2) of this section, a school district\nshall be eligible for a loan from the account if the sheriff has failed to collect or\ndisburse delinquent tax revenue, which is for t he benefit of the school district,\nwithin the fiscal year that the school district is to utilize those receipts according to\nits budget.\n(4) Under the criteria of subsection (2) of this section, no loan from the account shall be\nmade for a period in excess of ten (10) years, and under the criteria of subsection (3)\nof this section, no loan from the account shall be made for a period in excess of\nthree (3) years. The maximum amount of any one (1) loan from the account shall\nnot exceed two hundred fifty thous and dollars ($250,000) and shall be determined\nby the Kentucky Board of Education on recommendation of the chief state school\nofficer.\n(5) The Kentucky Board of Education shall establish the terms and conditions for\nrepaying the principal of such loan and interest shall not be charged on the loan. No\nloan shall cover a loss prior to January 1, 1972.\n(6) School districts eligible under this section to borrow from the account shall file\nformal application for such loan on forms provided by the state departmen t of\neducation. Before any loan is made, the application must be approved by the\nKentucky Board of Education on the recommendation of the chief state school\nofficer.\n(7) All repayments of loans made under this section shall be paid into the emergency\nrevolving school loan fund account, which shall be funded by an appropriation\nthrough the biennial budget. Balances remaining in the fund shall not revert to the\ngeneral fund at the end of any fiscal year.\n(8) On approval of the loan application by the Kentucky  Board of Education on the\nrecommendation of the chief state school officer, the Finance and Administration\nCabinet, on the certification of the chief state school officer, shall draw a warrant on\nthe State Treasurer for the amount of the approved loan tha t is due the school\ndistrict. The check shall be issued by the State Treasurer and transmitted to the\nDepartment of Education for distribution to the proper official of the school district\nwhen the district has complied with the rules and regulations of the Kentucky Board\nof Education.\n(9) Any loan to a local school district under the provisions of this section shall not be\nconsidered as an indebtedness of the school district within the meaning of Sections\n157 and 158 of the Kentucky Constitution.","path":["KRS Chapter 160"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3774","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:09Z","sha256":"cde68fa8e3b454eaa46e5c91390549fb17981c3e65efacd5ac568a8804af13e0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-160.597","next":"us-ky/krs-160.600"},"notice":"GroundRules: Original legal text. Not legal advice."}