{"data":{"id":"us-ky/krs-162.540","jurisdiction":"us-ky","citation":"KRS 162.540","heading":"Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS","body":"162.520 to 162.620.\nUpon receiving a request in writing from a board of education, the authority may, in its\ndiscretion, assist such board of education in financing any project by a cting in the\ncapacity and manner authorized to be performed by cities under KRS 162.120 to 162.290,\nand by counties under KRS 162.300. When applied to the authority, KRS 162.120 to\n162.300 shall be so read that the following terms and passages have the fol lowing\nrespective meanings or interpretations:\n(1) \"City\" or \"county\" means \"authority\";\n(2) \"City clerk\" or \"county clerk\" means \"secretary or assistant secretary of the\nauthority\";\n(3) \"Governing body of the city\" or \"fiscal court\" means \"authority\";\n(4) \"Mayor\" or \"county judge/executive\" means \"chairman or vice chairman of the\nauthority\";\n(5) \"Ordinance\" in the case of a city, or \"resolution\" in the case of a county, means a\nresolution of the authority;\n(6) \"Building and appurtenances\" means \"project\" a s defined in subsection (4) of KRS\n162.520;\n(7) The last sentence of KRS 162.190 shall read, \"It shall be plainly stated on the face\nof each bond that it was or is issued under the provisions of KRS 162.520 to\n162.620 (omitting reference to KRS 162.150 to 162.280 as such), and that it does\nnot constitute an indebtedness of the authority or of the Commonwealth\";\n(8) KRS 162.200 is modified to permit use of money received from bonds for the\nadditional purpose of paying reasonable expenses incurred in the auth orization,\nadvertising, preparation, sale, and delivery of bonds, and may include a fee\ncontracted to be paid to a fiscal agent for financial advice and services if the\ncontract or agreement therefor shall have been approved by the board of education\nand by the authority;\n(9) As used in KRS 162.140, \"lease\" shall have the meaning defined in subsection (5)\nof KRS 162.520, and the same shall be recorded or filed for recording in the office\nof the county clerk of the county in which the project is situated, as  evidenced by a\nwritten receipt or acknowledgment of filing issued by such clerk, or by a copy of the\nlease attested or certified by such clerk as being of record in his office. It shall be\nthe duty of the secretary of the authority to obtain such evidence  before delivery of\nthe bonds to a purchaser thereof; but failure to obtain the same shall not affect the\nvalidity of the bonds in the hands of any purchaser or holder;\n(10) KRS 162.240 shall not apply; and the following provisions shall govern in lieu\nthereof:\n\"One (1) or more depositories and paying agents may be selected and\ndesignated by the board of education, subject to the approval of the authority, which\napproval shall not unreasonably be withheld; but each depository and paying agent\nshall be a f inancial institution, within or without the Commonwealth, which is a\nmember of the Federal Deposit Insurance Corporation. All deposits of sinking funds\nand of bond proceeds shall continuously be secured by a pledge to the authority of\ndirect obligations of  the United States, exclusive of accrued interest, at all times at\nleast equal to the balance on deposit in the fund or account, such securities to be\ndeposited with the authority or held by a trustee or agent designated by the\nauthority; provided, however, in lieu of requiring such security the authority may in\nits discretion invest, or cause to be invested and reinvested, any moneys in direct\nobligations of the United States until such time as cash funds may be needed, and\nthe authority may prescribe for the custody and safekeeping of such securities.\nWhen cash funds are needed, the authority shall direct the conversion into cash of\nsuch securities, or a sufficient portion thereof, and may require that the same be\nsecured until disbursement, as herein prov ided. All income from such securities\nshall accrue to the board of education, but may be retained by the authority and\ncredited upon any rental obligation of the board of education under the lease, or\napplied to supplement bond proceeds if the same should for any reason turn out to\nbe insufficient to defray the costs and expenses of the project.\"","path":["KRS Chapter 162"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4088","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:12Z","sha256":"e7c5d3de1ad7560119b5e8668b07801b99e31fec7b3173431d664d4544a8492d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-162.530","next":"us-ky/krs-162.550"},"notice":"GroundRules: Original legal text. Not legal advice."}