{"data":{"id":"us-ky/krs-184.365","jurisdiction":"us-ky","citation":"KRS 184.365","heading":"Bonds -- Issuance -- Requirements -- Bond proceedings -- Board's officers","body":"and employees not liable in personal capacities.\n(1) In addition to bonds issued in accordance with KRS 65.7041 to 65.7083, the board\nof trustees of a transportation im provement district may provide by resolution for\nthe issuance, at one (1) time or from time -to-time, of bonds of the district for the\npurpose of paying all or any part of the cost of any one (1) or more projects. The\nbond service charges shall be payable s olely from pledged revenues pledged for\nsuch payment pursuant to the applicable bond proceedings. The bonds of each issue\nshall be dated, shall bear interest at a rate or rates or at variable rates, and shall\nmature or be payable at a time or times, with a  final maturity not to exceed thirty\n(30) years from their date or dates, all as determined by the board in the bond\nproceedings. The board shall determine the form of the bonds, including any\ninterest coupons to be attached thereto, and shall fix the deno mination or\ndenominations of the bonds and the place or places of payment of bond service\ncharges.\n(2) The bonds shall be signed by the chairperson or vice chairperson of the board or by\nthe facsimile signature of that officer and the official seal of the district or a\nfacsimile thereof may be affixed thereto or printed thereon and attested by the\nsecretary-treasurer of the district, which may be by facsimile signature. Any\ncoupons attached thereto shall bear the facsimile signature of the chairperson or\nvice chairperson of the board. In case any officer whose signature, or a facsimile of\nwhose signature, appears on any bonds or coupons ceases to be the officer before\ndelivery of the bonds, such signature or facsimile shall nevertheless be valid and\nsufficient for all purposes the same as if the officer had remained in office until\ndelivery.\n(3) Subject to the bond proceedings and provisions for registration, the bonds shall\nhave all the qualities and incidents of negotiable instruments. The bonds may be\nissued in the form or forms as the board determines, including without limitation\ncoupon, book entry, and fully registered form, and provision may be made for the\nregistration of any coupon bonds as to principal alone and also as to both principal\nand interest, and for the exchange of bonds between forms. The board may sell the\nbonds by competitive bid on the best bid after advertisement or request for bids or\nby private sale in the manner and for the price it determines to be for the best\ninterest of the district.\n(4) The proceeds of the bonds of each issue shall be used solely for the payment of the\ncosts of the project or projects for which the bonds were issued, and shall be\ndisbursed in the manner and under the restrictions as the board provides in the bond\nproceedings.\n(5) Prior to the preparation of definitive bonds, the board may, under like restrictions,\nissue interim receipts or temporary bonds or bond anticipation notes, with or\nwithout coupons, exchangeable for definitive bonds when the bonds have bee n\nexecuted and are available for delivery. The board may provide for the replacement\nof any mutilated, stolen, destroyed, or lost bonds.\n(6) The provisions of KRS 424.360 shall apply to the bonds issued under this section.\n(7) The bond proceedings shall pr ovide, subject to the provisions of any other\napplicable bond proceedings, for the pledge to the payment of bond service charges\nand of any costs of or relating to credit enhancement facilities of all, or a part as the\nboard may determine, of the pledged r evenues and the applicable special fund or\nfunds, which pledges may be made to secure the bonds on a parity with bonds\ntheretofore or thereafter issued if and to the extent provided in the bond\nproceedings. Every pledge, and every covenant and agreement wi th respect thereto,\nmade in the bond proceedings may in the bond proceedings be extended to the\nbenefit of the owners and holders of bonds and to any trustee and any person\nproviding a credit enhancement facility for those bonds, for the further security f or\nthe payment of the bond service charges and credit enhancement facility costs.\n(8) The bond proceedings may contain additional provisions as to:\n(a) The redemption of bonds prior to maturity at the option of the board or of the\nbondholders or upon the o ccurrence of certain stated conditions, and at such\nprice or prices and under such terms and conditions as are provided in the\nbond proceedings;\n(b) Other terms of the bonds;\n(c) Limitations on the issuance of additional bonds;\n(d) The terms of any trust a greement securing the bonds or under which the same\nmay be issued;\n(e) Any or every provision of the bond proceedings being binding upon the board,\nstate agencies, or other persons as may from time to time have the authority\nunder law to take such actions as may be necessary to perform all or any part\nof the duty required by the provision;\n(f) Any provision that may be made in a trust agreement; or\n(g) Any other or additional agreements with the holders of the bonds, or the\ntrustee therefor, relating to the bonds or the security for the bonds, including\nagreements for credit enhancement facilities.\n(9) Any holder of bonds or a trustee under the bond proc eedings, except to the extent\nthat the holder's or trustee's rights are restricted by the bond proceedings, may, by\nany suitable form of legal proceedings, protect and enforce any rights under the laws\nof this state or granted by the bond proceedings. Thos e rights include the right to\ncompel the performance of all duties of the board required by KRS 184.350 to\n184.395 or the bond proceedings; to enjoin unlawful activities; and in the event of\ndefault with respect to the payment of any bond service charges o n any bonds or in\nthe performance of any covenant or agreement on the part of the board contained in\nthe bond proceedings, to apply to a court having jurisdiction of the cause to appoint\na receiver to receive and administer the revenues and the pledged rev enues which\nare pledged to the payment of the bond service charges on the bonds or that are the\nsubject of the covenant or agreement, with full power to pay, and to provide for\npayment of, bond service charges on the bonds, and with the powers, subject to the\ndirection of the court, as are accorded receivers in general equity cases, excluding\nany power to pledge additional revenue or receipts or other income, funds, or\nmoneys of the board to the payment of the bond service charges and excluding the\npower to take possession of, mortgage, or cause the sale or otherwise dispose of any\nproject or other property of the board.\n(10) Each duty of the board and the board's officers and employees, undertaken pursuant\nto the bond proceedings, is hereby established as a  duty of the board, and of each\nofficer, member, or employee having authority to perform the duty.\n(11) The board's officers or employees are not liable in their personal capacities on any\nbonds issued by the board or any agreements of or with the board re lating to those\nbonds.\n(12) The bonds are lawful investments for banks, savings and loan associations, credit\nunions, trust companies, trustees, fiduciaries, insurance companies, including\ndomestic for life and domestic not for life, trustees or other offi cers having charge\nof sinking and bond retirement or other funds of the state or its political\nsubdivisions and taxing districts, the commissioners of the sinking fund of the state,\nthe Kentucky Workers' Compensation Funding Commission, state -administered\nretirement systems as defined in KRS 7A.210, and also are acceptable as security\nfor the repayment of the deposit of public moneys.\n(13) Provision may be made in the applicable bond proceedings for the establishment of\nseparate accounts in the bond service  fund and for the application of such accounts\nonly to the specified bond service charges pertinent to such accounts and bond\nservice fund, and for other accounts therein within the general purposes of the fund.\n(14) The board may pledge all, or any portio n as it determines, of the pledged revenues\nto the payment of bond service charges, and for the establishment and maintenance\nof any reserves and special funds, as provided in the bond proceedings, and make\nother provisions therein with respect to pledged revenues, revenues, and net\nrevenues as authorized by KRS 184.350 to 184.395, which provisions shall be\ncontrolling notwithstanding any other provisions of law pertaining thereto.","path":["KRS Chapter 184"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53019","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:36Z","sha256":"4c9695b9137f8e8c4cbd14fde6bf0042a464ac2cfa1e98bcb3bf3954c1b2f6ad","source_id":"us-ky","stale":false,"prev":"us-ky/krs-184.363","next":"us-ky/krs-184.367"},"notice":"GroundRules: Original legal text. Not legal advice."}