{"data":{"id":"us-ky/krs-224a.165","jurisdiction":"us-ky","citation":"KRS 224A.165","heading":"Reserve funds or replacement funds -- Maintaining required level --","body":"Approval of General Assembly required for certain bond or note issuances.\n(1) The authority may, in connection with the issuance of its revenue bonds and notes\nfor the accomplishment  of its public purposes pursuant to this chapter, establish in\nrespect of the revenue bonds and notes reserve funds or replacement funds required\nin the sound discretion of the board of the authority in order to enable the authority\nto effectuate its proper public purposes, and to issue revenue bonds and notes in the\nmost advantageous manner. If any reserve fund or replacement fund created by the\nauthority in connection with any revenue bond issue or note issue should, in\nviolation of any contract made by the authority with any bond holder or note holder,\nbe monetarily deficient in any respect as of any date of accounting stipulated by the\nauthority, the authority shall immediately make formal request in writing to the\nsecretary of the Finance and Administra tion Cabinet, and to the Governor of\nKentucky, that sums adequate to restore the reserve fund or replacement fund to its\ncontractually required level and to pay any overdue principal and interest on any\noutstanding revenue bonds and notes of the authority be included in the next\nsucceeding executive budget, and that the budget request be presented to the\nGeneral Assembly of Kentucky with recommendation for approval by the General\nAssembly for payment to the authority for the use and benefit of the reserve f und or\nreplacement fund.\n(2) If the provisions of KRS 56.870(3) are determined to apply to a revenue bond or\nnote, and if the proceeds of the bond or note are made available to a governmental\nagency or private entity, and if the debt is not fully guarantee d by the United States\ngovernment or secured by a nationally recognized entity authorized to issue\nguarantees and rated in the highest rating category by at least one (1) of the\nnationally recognized rating services, the authority shall obtain approval fro m the\nGeneral Assembly in accordance with the provisions of KRS 56.870(1) prior to the\nissuance of the bonds or notes. Notwithstanding the foregoing, no such approval\nshall be required for the following issues of bonds or notes:\n(a) Refunding bonds or note s which are issued for the purpose of achieving debt\nservice savings and which do not extend the term of the refunded bonds;\n(b) Bonds or notes if the aggregate principal amount of the bonds or notes\noutstanding under any trust indenture or bond resolution  does not exceed the\nsum of five hundred million dollars ($500,000,000).\nThe incremental amount of principal debt incurred by issuing refunding bonds or\nnotes which are issued for the purpose of achieving debt service savings and which\ndo not extend the term of the refunded bond or note shall not be subject to the limits\ndefined in paragraph (b).","path":["KRS Chapter 224A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=10577","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:43Z","sha256":"c7e8ff80433ed4ee3854ba52ed3318a6a386dde6525af2074eda3be42091d134","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224a.160","next":"us-ky/krs-224a.170"},"notice":"GroundRules: Original legal text. Not legal advice."}