{"data":{"id":"us-ky/krs-175.605","jurisdiction":"us-ky","citation":"KRS 175.605","heading":"Refunding bonds -- Purposes -- Factors to be taken into account --","body":"Investment of proceeds -- Agreements and leases -- Securing bonds.\n(1) The authority is hereby authorized to provide for the issuance of its turnpike\nrevenue refunding bonds for any combination of the following purposes:\n(a) The refunding of any bonds then outstanding, whether an entire issue or\nseries, or one or more issues or series, or any portions or parts of any issue or\nseries, which shall have been issued under the provisions of this chapter;\n(b) For such refunding and for the additional purpose of financing, in whole or in\npart, improvements, extensions, enlargements or completion of any turnpike\nproject or projects in connection with which the bonds to be refunded shall\nhave been issued;\n(c) For such refunding and to pay all or any part of the costs of any new or\nadditional turnpike project or projects.\n(2) In determining the principal amount of any such turnpike revenue refunding bonds\nto be issued for the purpose of refunding a ny bonds outstanding pursuant to the\nprovisions of this chapter, the authority may take into account the following factors:\n(a) The principal amount of all outstanding bonds to be redeemed and refunded,\nas of the established date of redemption thereof;\n(b) The total amount of any redemption premium incident to redemption of such\noutstanding bonds to be refunded;\n(c) The total amount of any interest accrued or to accrue to the date or dates of\nredemption of such outstanding bonds to be refunded;\n(d) Any and all costs or expenses incident to such refunding;\n(e) Such amount, if any, as may be anticipated with certainty to be realized upon\nthe investment of the bond proceeds of turnpike revenue refunding bonds\nfrom the date of such refunding bonds to the date or  dates of redemption of\noutstanding bonds to be refunded; and\n(f) Any amount or amounts which may have been accrued or accumulated as a\nreserve or reserves with reference to the outstanding bonds to be refunded, and\nany earnings realized, or anticipated with certainty to be realized therefrom, to\nthe extent that such reserve or reserves may be so applied as provided by the\nproceedings authorizing the outstanding bonds to be refunded.\n(3) The issuance of such turnpike revenue refunding bonds, the maturities and other\ndetails thereof, the rights of the holders thereof, and the rights, duties and\nobligations of the authority in respect of the same, shall be governed by the\nprovisions of this chapter, insofar as the same may be applicable, and may in\nharmony the rewith be adjusted and modified to conform to the facts and\ncircumstances prevailing in each instance of issuance of such turnpike revenue\nrefunding bonds.\n(4) With reference to the investment of the proceeds of any such turnpike revenue\nrefunding bonds, the authority shall not authorize or anticipate investment earnings\nexceeding such as are authorized or permitted under prevailing federal laws,\nregulations and administrative rulings relating to arbitrage bonds.\n(5) Pending application of the proceeds of s uch turnpike revenue refunding bonds\n(together with any other funds available for application to refunding purposes, if so\nprovided or permitted in the resolution authorizing the issuance of such turnpike\nrevenue refunding bonds, or in the trust indenture securing the same), to the\npurposes hereinabove authorized and permitted, such refunding bond proceeds and\nsuch other available funds, if any, may be invested in direct obligation of, or\nobligations the principal of and the interest on which are unconditionally guaranteed\nby, the United States of America, or in United States government agency\nobligations, which shall mature, or which shall be subject to redemption by the\nholder thereof at the option of such holder, not later than the respective date or dates\nwhen such proceeds, together with the interest accruing thereon, will be required for\nthe refunding purposes intended and authorized; or, in lieu of such investments, all\nor any part of such refunding bond proceeds may be placed in interest -bearing time\ndeposits, or other similar arrangements may be made with regard thereto which will\nassure that such refunding bond proceeds, together with the interest accruing\nthereon, will be available when required for the refunding purposes intended and\nauthorized; provided, however, that such time deposits shall be made in a bank or\nbanks possessing capital and surplus, in each case, of not less than one hundred\nmillion dollars ($100,000,000), or, if any such deposit be made in any bank having\na combined capital and s urplus of less than said amount, the deposit shall be\nsecured by obligations such as those permitted herein for investment for all amounts\nin excess of twenty-five percent (25%) of the combined capital and surplus of such\nbank.\n(6) In connection with or incident to the issuance of the authority's turnpike revenue\nrefunding bonds for any of the purposes authorized in this section, the authority and\nthe department are authorized to make one or more written agreements or\nsupplemental agreements with regard to any one or more of the matters and things\nset forth in KRS 175.460, and pursuant thereto the authority and the department are\nauthorized and empowered to enter into one or more leases, or supplemental leases,\npursuant thereto; and a ny such leases or supplemental leases may contain, in\nsubstance, any of the provisions set forth in KRS 175.470, with modifications\nconforming to the provisions of such agreements or supplemental agreements, and\nwith such other provisions not inconsistent with KRS 175.470 as the authority and\nthe department may deem appropriate and desirable. Provided, however, that such\nagreements may, by their terms provide that any such leases, or supplemental leases,\nand the rental schedule or schedules with reference t hereto, shall be and become\neffective only upon the redemption of the outstanding bonds for the refunding of\nwhich such turnpike revenue refunding bonds are issued.\n(7) Any such turnpike revenue refunding bonds issued by the authority may be secured,\nuntil the date or dates established for the redemption of the outstanding bonds being\nrefunded, solely, as to both principal and interest, by a pledge of and lien upon the\nobligations acquired by the application of the proceeds of such turnpike revenue\nrefunding bonds, and the income thereon, and in such case shall not be secured by\nany trust indenture, lease agreement, resolution, or other contractual arrangement\nsecuring the outstanding bonds to be refunded by such turnpike revenue refunding\nbonds; provided, h owever, that any authorizing proceedings incident to such\nturnpike revenue refunding bonds may provide that as of the effective date of such\nrefunding, the refunding bonds shall be substituted for the outstanding bonds being\nrefunded, and shall be secured as to payment of principal and interest identically as\nin the case of the outstanding bonds being refunded, subject to the provisions,\nrequirements and conditions precedent established by the authority incident to the\nissuance of the outstanding bonds being refunded.","path":["KRS Chapter 175"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=5093","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:26Z","sha256":"88a0539a71b8540268b3c692ce65c1a18efa6ec113ce4c48b21676e350388772","source_id":"us-ky","stale":false,"prev":"us-ky/krs-175.600","next":"us-ky/krs-175.610"},"notice":"GroundRules: Original legal text. Not legal advice."}