{"data":{"id":"us-ky/krs-164a.080","jurisdiction":"us-ky","citation":"KRS 164A.080","heading":"Bond issue -- Amount -- Interest -- Use of proceeds -- Approval of","body":"General Assembly required for certain bond or note issuances -- Exception.\n(1) The corporation may provide for the issuance, at one (1) time or from time to time,\nof not exceeding five billion dollars ($5,000,000,000) in bonds of the corporation to\ncarry out and effectuate its corporate purposes and powers. In anticipation of the\nissuance of bonds, the corporation may provide for the issuance, at one (1) time or\nfrom time to time, of b ond anticipation notes. The principal of and the interest on\nbonds or notes shall be payable solely from the funds provided for payment. Any\nnotes may be made payable from the proceeds of bonds or renewal notes or, if bond\nor renewal note proceeds are not available, notes may be paid from any available\nrevenues or assets of the corporation. The bonds or notes of each issue shall be\ndated and may be made redeemable before maturity at the option of the corporation\nat the price or prices and under the terms an d conditions determined by the\ncorporation. Any bonds or notes shall bear interest at a rate or rates determined by\nthe corporation. Notes shall mature at a time or times not exceeding five (5) years\nfrom their date or dates and bonds shall mature at a tim e or times not exceeding\nthirty (30) years from their date or dates, as determined by the corporation. The\ncorporation shall determine the form and manner of execution of the bonds or notes,\nincluding any interest coupons to be attached, and shall fix the denomination or\ndenominations and the place or places of payment of principal and interest, which\nmay be any bank or trust company within or without the state. If any officer whose\nsignature or a facsimile of whose signature appears on any bonds or notes o r\ncoupons attached to them shall cease to be an officer before the delivery of the\nbonds or notes, the signature or facsimile shall be valid and sufficient for all\npurposes as if he had remained in office until the delivery. The corporation may also\nprovide for the authentication of the bonds or notes by a trustee or fiscal agent. The\nbonds or notes may be issued in coupon or in registered form, or both, as the\ncorporation may determine, and provision may be made for the registration of any\ncoupon bonds or notes as to principal alone and also as to both principal and\ninterest, and for the reconversion into coupon bonds or notes of any bonds or notes\nregistered as to both principal and interest, and for the interchange of registered and\ncoupon bonds or notes.  Upon the approval of a resolution of the corporation\nauthorizing the sale of its bonds or notes, the bonds or notes may be sold in a\nmanner, either at public or private sale, and for a price the corporation shall\ndetermine to be for the best interest of t he corporation and best effectuate the\npurposes of this chapter if the sale is approved by the corporation.\n(2) The proceeds of any bonds or notes shall be used solely for the purposes for which\nthey are issued and shall be disbursed in a manner and under restrictions, if any, the\ncorporation may provide in the resolution authorizing the issuance of bonds or notes\nor in the trust agreement securing the bonds or notes. The principal of and interest\non any bonds issued by the corporation shall be payable only  from the proceeds\nderived by the corporation from insured student loans made and purchased from the\nproceeds of the bonds.\n(3) (a) Prior to the issuance of any bonds or notes that are not secured by the\nrepayment of student loans at least ninety -five percent (95%) insured by the\nguarantee agency and reinsured by the United States of America, the\ncorporation shall obtain approval of the issuance from the General Assembly\nin accordance with the provisions of KRS 56.870(1). This requirement shall\nnot apply to  refunding bond or note issues which are for the purpose of\nachieving debt service savings and which do not extend the term of the\nrefunded bond or note.\n(b) Notwithstanding paragraph (a) of this subsection, if during the interim of\nsessions of the General Assembly, the federal act is amended to reduce to less\nthan ninety-five percent (95%) the maximum rate of insurance payable by the\nguarantee agency or reinsurance payable by the Secretary of Education of the\nUnited States on insured student loans, upon no tification by the corporation to\nthe Legislative Research Commission of the change in the federal act, the\ncorporation may, until the adjournment of the next even -numbered-year\nregular session of the General Assembly, issue bonds or notes for student\nloans insured by the guarantee agency and reinsured by the Secretary of\nEducation of the United States to the maximum extent permitted by the\nfederal act.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=4538","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"e99c9fc3e23de79634520757ab873a162df9ffa0a5df08e38864f8bd85453840","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.070","next":"us-ky/krs-164a.090"},"notice":"GroundRules: Original legal text. Not legal advice."}