{"data":{"id":"us-ky/krs-224a.120","jurisdiction":"us-ky","citation":"KRS 224A.120","heading":"Authority may issue revenue bonds.","body":"(1) The authority may provide, at one (1) time or from time to time, for the issuance of\nits Kentucky Infrastructure Authority revenue bonds, for the purpose of providing\nfunds and moneys to the authority to enable it to enter into assistance agreements\nwith g overnmental agencies, acquire and lease infrastructure projects, to\ngovernmental agencies, purchase or refinance obligations of governmental agencies\nissued for infrastructure projects and make loans or grants for infrastructure\nprojects, and to enable the  authority generally to carry out and effectuate its proper\ncorporate purposes. In anticipation of the issuance of the revenue bonds, the\nauthority may provide for the issuance at one (1) time, or from time to time, of\nrevenue bond anticipation notes pursu ant to the general laws of the state. The\nprincipal of and the interest on the revenue bonds or notes shall be payable solely\nfrom authority revenues. Any such notes may be made payable from the proceeds of\nbonds or renewal notes, or in the event bond or r enewal note proceeds are not\navailable, or should the authority deem it financially practicable to pay the notes\ndirectly from authority revenues, the notes may be paid from any available authority\nrevenues. Prior to the issuance of the bonds or notes, the  authority shall submit any\nproposed issue to the Capital Projects and Bond Oversight Committee for its review\nand determination in accordance with the provisions of KRS 45.810.\n(2) The revenue bonds or notes of the authority shall be dated and may be rede emable\nprior to maturity at the option of the authority at prices and under terms and\nconditions determined by the authority. Any bonds or notes shall bear interest at the\nrate or rates, shall be payable annually or at shorter intervals, and may bear\nconversion privileges determined by the authority. Notes shall mature at the time or\ntimes not exceeding five (5) years from their date or dates, and revenue bonds shall\nmature at the time or times not exceeding forty (40) years from their date or dates as\nmay be determined by the authority. The authority shall determine the form and\nmanner of execution of the bonds or notes, 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. In case any officer of\nthe authority whose signature or facsimile of whose signature shall appear on any\nrevenue bonds or notes, shall cease to be such officer before the delivery thereof,\nthe signature or the facsimile shall be valid and sufficient for all purposes, the same\nas if the officer had remained in office until the delivery. At the time of issuance of\nvariable rate revenue bonds, the authority may designate individuals or institutions\nwhich, in the sole jud gment of the authority, have financial market expertise to\nserve as agent for the authority for establishing and changing from time to time,\nwhile the variable rate revenue bonds remain outstanding, the rate of interest to be\nborne by and the price to be p aid for the revenue bonds. The rate-setting procedures\nand authority of each agent shall be set forth in writing, and may include a formula\nor an index or indices based upon market factors, and shall be established by the\nauthority at the time of issuance of the revenue bonds. At the time of the issuance of\nthe revenue bonds, the authority shall establish the maximum interest rate to be\nborne by the revenue bonds. The authority shall retain the right to remove or replace\nany agent at any time and for any reason. The authority may provide that said bonds\nor notes may be executed only with the facsimile signatures of its officers, but said\nbonds or notes shall be executed with the manual signature of a bank or trust\ncompany designated by the authority as registrar and paying agent.\n(3) All revenue bonds or notes issued under the provisions of this chapter shall have\nand are hereby declared to possess all of the qualities and incidents of negotiable\ninstruments under the laws of the state. The authority may sell  the revenue bonds or\nnotes in the manner, either at public or private negotiated sale, and for the price, as\nit may determine will best effect the purpose of this chapter. If revenue bonds are\nsold at public, competitive sale, the revenue bonds shall be s old after newspaper\nadvertising conforming to the requirements of KRS Chapter 424 and competitive\nbids for the sale of the revenue bonds shall be opened and read publicly by the\nauthority at a designated place, day and hour, all of which shall be announced  in the\nadvertising made relative thereto.\n(4) In its proceedings authorizing the issuance of revenue bonds or notes, the authority\nshall fix and determine contractual provisions with the bondholders relating to the\nreceipt, allocation, pledging, and disbursement of authority revenues, and may enact\nand determine terms, conditions, and restrictions pursuant to which additional\nrevenue bonds of the authority may be authorized and issued from time to time. The\nproceedings, determinations and enactments of the  authority shall specify that the\npayment of principal of and interest on such authority revenue bonds and notes shall\nconstitute a first charge and lien against some or all authority revenues before any\nauthority revenues are used, applied, and disbursed for any other valid purposes of\nthe authority, including the payment of operation and maintenance costs incident to\nthe operation of the authority.\n(5) The proceeds of all revenue bonds or notes shall be used solely for the purpose of\nenabling the authorit y to enter into assistance agreements with governmental\nagencies, to acquire and lease infrastructure projects to governmental agencies, to\npurchase or refinance obligations of governmental agencies issued for infrastructure\nprojects, to make loans or gran ts to the governmental agencies for infrastructure\nprojects, or for any purpose authorized in this chapter. Interest coming due on the\nrevenue bonds or notes, for not to exceed three (3) years, together with a debt\nservice reserve equal to two (2) times th e maximum principal and interest\nrequirements to come due during any fiscal year ending June 30, in connection with\nthe revenue bonds or notes, may be capitalized from bond proceeds, it being\ndetermined and recognized that infrastructure projects, for which loans or grants are\nmade, may in some cases not become fully revenue -producing for a period of time\ncoincident with the construction period of the infrastructure projects. Revenue bond\nor note proceeds may also be utilized, used and applied for the payme nt of ordinary\nand necessary expenses in connection with issuance of the revenue bonds or notes,\nincluding, but not by way of limitation, a sum equal to any discount in the sale of\nrevenue bonds or notes, if discount bids are authorized and permitted by th e\nauthority; administrative expenses, including the preparation of revenue bonds or\nnotes, publication of notices, printing, and other costs; attorneys' fees; and other\nordinary and necessary costs of financing, including the payment of fees to fiscal\nagents for advice and assistance in the preparation and marketing of revenue bonds\nor notes.\n(6) Prior to the preparation of definitive revenue bonds or notes, the authority may,\nunder like restrictions, issue interim receipts or temporary bonds, exchangeable for\ndefinitive revenue bonds or notes when the revenue bonds or notes shall have been\nexecuted, and are available for delivery. The authority may also provide for the\nreplacement of any revenue bonds or notes that shall have become mutilated or shall\nhave been destroyed or lost. Revenue bonds or notes may be issued under the\nprovisions of this chapter directly by the authority without obtaining the consent or\nacquiescence of any cabinet, division, commission, board, department, or agency of\nthe state other than the Finance and Administration Cabinet, and without any other\nproceedings or the happening of any other conditions or things except as\nspecifically required by this chapter and the provisions of the resolution or\nresolutions of the authority authorizing the issuance of the revenue bonds or notes.","path":["KRS Chapter 224A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=10572","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:42Z","sha256":"d5ed602aa109047db8f82552cf81836a5d0c6ed19568242e5a993b24ca02cf6a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224a.118","next":"us-ky/krs-224a.130"},"notice":"GroundRules: Original legal text. Not legal advice."}