{"data":{"id":"us-ky/krs-177.730","jurisdiction":"us-ky","citation":"KRS 177.730","heading":"Bonds for park purposes and bonds for highways, bridges and tunnels to","body":"have separate sources of payment of principal and interest -- Provisions for\nlevying taxes as required by the Constitution.\nAll of said 1960 bonds shall, as aforesaid, be direct ge neral obligation bonds of the\nCommonwealth and shall be issued with an irrevocable pledge of the full faith, credit,\nresources and unlimited taxing power of the Commonwealth, but in accordance with the\nmandatory requirement of Section 50 of the Constitutio n of the Commonwealth there\nshall be levied and collected, annually, taxes sufficient to pay the interest stipulated, and\nto discharge the debt within thirty (30) years, as follows:\n(1) In order to provide for the payment of the stipulated interest, and to  discharge\nwithin thirty (30) years, the indebtedness to be evidenced by the ten million dollars\n($10,000,000) of 1960 bonds to be issued for acquisition, development and\nimprovement of state parks and for development and improvement of existing state\nparks, there shall be levied and collected annually so long as any of such bonds are\noutstanding and unpaid, taxes of the Commonwealth upon all real property, tangible\npersonal property, and intangible personal property from time to time subject to\ntaxation by the Commonwealth, at rates not less than the rates now imposed by law\nor rates so adjusted as not in any event to jeopardize the prompt payment of\nprincipal of and interest on said bonds when due and payable. All proceeds of such\ntaxes, to the extent nece ssary for payment of the principal of and interest on the ten\nmillion dollars ($10,000,000) of 1960 bonds designated for state park purposes, as\nand when such principal and interest, respectively, shall become due and payable,\nare hereby appropriated for that purpose; and such amount thereof shall in each year\nbe set aside in the State Treasury in the \"Park Bond Sinking Fund,\" hereby created,\nand shall be held therein and disbursed and used upon order of the State Treasurer\nsolely for the purpose of paying the principal of and interest on said bonds when\nand where due and payable, until all of said bonds, or such lesser amount thereof as\nmay have been issued within thirty (30) years from date of first issue shall have\nbeen paid in full. In each year, after s etting aside such prescribed amount into the\npark bond sinking fund, the remainder of the proceeds of said identified taxes shall\nbe available for any proper general fund purposes of the Commonwealth without\nrestriction. Moneys from time to time set aside and deposited in said park bond\nsinking fund, as hereinabove provided, may be invested by the State Investment\nCommission from time to time in United States government securities which\nmature, or are subject to redemption at the option of the holder, at or  before the\nvarious times when cash funds will be required for payment of the maturing\nprincipal of and interest on said identified bonds; and income received from such\nsecurities shall be retained in the said park bond sinking fund and may be taken into\nconsideration in the next ensuing annual determination of the amount of such tax\nproceeds required to be set aside into the said fund as hereinabove provided.\n(2) In order to provide for the payment of the stipulated interest, and to discharge\nwithin thirty  (30) years the indebtedness to be evidenced by the ninety million\ndollars ($90,000,000) of 1960 bonds to be issued for the construction of highways,\nbridges and tunnels there shall be levied and collected, annually, taxes of the\nCommonwealth for the benef it of the state road fund in the form of license, excise\ntaxes and fees relating to registration, operation and use of vehicles on public\nhighways and excise taxes, use and license fees and taxes relating to gasoline and\nother motor fuels consumed upon the  public highways in the Commonwealth, at\nrates not less than the rates now imposed by law or at rates so adjusted as to produce\nfor the road fund not less than the amount now derived from all such sources.\nSubject to certain prior vested rights hereinafter  enumerated, all proceeds of such\ntaxes, to the extent necessary for payment of the principal of and interest on the\nninety million dollars ($90,000,000) of 1960 bonds designated for the highways,\nbridges and tunnels, as and when such principal and interes t, respectively, become\ndue and payable, are hereby appropriated for that purpose; and such amount thereof\nshall in each year be set aside in the State Treasury into the \"Highway Bond Sinking\nFund of 1960,\" hereby created within the state road fund, and sh all be held therein\nand disbursed and used upon order of the State Treasurer solely for the purpose of\npaying the principal of and interest on said identified bonds when and where due,\nuntil all of said bonds, or such lesser amount thereof as may have been  issued\nwithin such period of thirty (30) years, shall have been paid in full; provided,\nhowever, moneys in said fund may be invested pending disbursement as in the case\nof moneys in the park bond sinking fund as herein above provided. In setting aside\nmoneys from the proceeds of such taxes and fees into the highway bond sinking\nfund of 1960, due regard shall be had for any and all vested rights in and to such\nproceeds existing in favor of (a) the holders of general obligation bonds of the\nCommonwealth here tofore or hereafter issued and outstanding pursuant to KRS\n177.580 to 177.630, as authorized and approved by the voters at the general election\non November 6, 1956, (b) the holders of revenue bonds issued for constructing the\nturnpike between Louisville an d Elizabethtown, Kentucky, as provided in this\nchapter and in a certain trust agreement made in connection with the issuance of\nsaid bonds, including recognition of the commitment of the Commonwealth to pay\nthe cost of maintaining, repairing and operating said turnpike, (c) the holders of\nrevenue bonds issued for the construction of certain bridges as set forth in KRS\nChapter 180 and in certain trust indentures securing such bridge revenue bonds,\nincluding the commitment of the Commonwealth to pay the cost of operating and\nmaintaining such bridges, (d) the holders of valid contracts of the Department of\nHighways which are in existence on the respective dates any bonds are issued\npursuant to KRS 177.700 to 177.820, and (e) the right of the several counties of  the\nCommonwealth to receive distribution of certain revenues for the respective county\nroad funds as provided in KRS 47.020. The right is reserved to the Commonwealth\nto provide in the future for the construction of additional turnpikes and bridges and\nfinancing the same by issuing revenue bonds; and in all such instances the\nCommonwealth shall have the right to create for the security and source of payment\nof such revenue bonds a first and prior pledge of and lien upon any and all revenues\nidentified as being generated by such respective projects. In each year, after setting\naside into the 1960 highway bond sinking fund the amount herein prescribed, and\nafter due recognition of the rights enumerated above, the remainder of the proceeds\nderived from such ta xes and fees may be expended and used for any lawful and\nproper purposes of the state road fund as otherwise permitted by the Constitution\nand laws of the Commonwealth.","path":["KRS Chapter 177"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=5364","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:29Z","sha256":"a6d76658a628e1de3f2578100413604e23be183df1d8b01843981badc53b68dd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-177.720","next":"us-ky/krs-177.740"},"notice":"GroundRules: Original legal text. Not legal advice."}