{"data":{"id":"us-ky/krs-220.587","jurisdiction":"us-ky","citation":"KRS 220.587","heading":"Financing methods temporarily inadequate -- Procedure -- Contracts.","body":"(1) If the district finds as a fact that the methods of financing sewer facilities within a\nconstruction subdistrict provided for in KRS 220.553 to 220.613 will be inadequate,\nuneconomic, or unduly burdensome to the residents to be initially served, the\ndistrict may contract with one (1) or more persons to construct or cause to be\nconstructed a sewer system within the construction subdistrict or to advance or loan\nmoney to the district for the construction of a sewer system within the construction\nsubdistrict. The sewer system constructed will be the property of the construction\nsubdistrict and will be a construction subdistrict facility. When the district finds that\none (1) or more financing methods for construction subdistricts established by KRS\n220.553 to 22 0.613, excluding this section, have become feasible, the district may\nadopt such method or methods to raise the money to pay for the construction of\nsewer facilities within the construction subdistrict or to pay the loan.\n(2) The contract may be made prior  to the making of an order establishing the\nconstruction subdistrict. The contract may require that one (1) or more persons\nagree to buy construction subdistrict bonds to be issued pursuant to KRS 220.577 in\nan amount specified, which shall be sufficient t o finance the construction of the\nsewer system. The maximum price and yield of the bonds shall be stated in the\ncontract. Such contract shall not prevent the district from selling the bonds to a\nlower bidder.\n(3) All contracts made pursuant to this section  shall be in writing and shall contain a\ncovenant that this section shall prevail over any contrary feature of the contract.\n(4) The General Assembly declares that the public policy of the Commonwealth will\nnot be offended merely because a contract or loan  made pursuant to this section is\nprivately negotiated or because it is made without competitive bidding.\n(5) Bonds sold to one (1) or more contracting parties pursuant to subsection (2) shall be\nendorsed to disclose the nature of the sale. Such bonds, no matter who the holder or\nowner, shall never be eligible to have any payment made on their account pursuant\nto KRS 220.593(6).","path":["KRS Chapter 220"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=9852","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:33Z","sha256":"7241a615487bf3dfdd15d38b074f84c48d8cc342204e4615bb4b3f6f2af856f0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-220.585","next":"us-ky/krs-220.590"},"notice":"GroundRules: Original legal text. Not legal advice."}