{"data":{"id":"us-ky/krs-268.370","jurisdiction":"us-ky","citation":"KRS 268.370","heading":"Board may issue bonds -- Terms -- Use of proceeds -- Duties of treasurer --","body":"Bond -- Duties of county clerk -- Warrants for payment.\n(1) The board of drainage commissioners may, if in their judgment it seems best, issue\nbonds on behalf of any district under their control, not to exceed ninety percent\n(90%) of the total amount of the minimum district assessments levied upon the\nproperty of the district approved by the county judge/executive. The bonds shall be\nin denominations of not less than one hundre d dollars ($100), bearing interest\npayable at least annually from the date of issue, to mature at annual or more\nfrequent intervals within thirty (30) years, commencing after a period of years not\nlater than five (5) years, to be determined by the board. B oth principal and interest\nshall be payable at some convenient bank or trust company's office, to be named in\nthe bonds. The bonds shall be signed by the president of the board, attested with the\nseal of the board, and the signature of the secretary and countersigned by the county\nclerk of the county in which the district is organized. All bonds shall be executed\nand delivered to the treasurer of the district, who shall sell them in quantities and at\ndates as the board considers necessary. The funds derived  from the sale of bonds\nshall be used only to pay the cost of improvements and the expenses, fees, and\nsalaries authorized by law. The secretary of the board shall certify to the county\nclerk in which the district was organized a copy of the resolution aut horizing and\ndirecting the issuance of the bonds, which shall contain a list of the bonds, their\ndates of maturity, and amounts. The clerk shall record this resolution in the lis\npendens record in his office. The bonds shall show on their face the purpose for\nwhich they are issued.\n(2) The bonds shall be payable out of money derived from the assessments upon\nproperty, and a sufficient amount of the drainage assessment shall be appropriated\nby the board to pay the principal and interest. This sum shall be pr eserved in a\nseparate fund for that purpose. All bonds and coupons not paid at maturity shall\nbear interest from maturity until paid, or until sufficient funds for their payment\nhave been deposited at the place of payment, and this interest shall be approp riated\nby the board out of the penalties and interest collected on assessments or any other\navailable funds of the district. The board, in making the annual levy of assessments,\nshall take into account the maturing bonds and interest on all bonds and make\nample provisions in advance for their payment. If the proceeds of the original levy\nof assessments are not sufficient to pay the principal and interest of all bonds\nissued, the board shall make any additional levy upon benefits assessed necessary\nfor this purpose. However, no levy of assessments shall be made in excess of the\nbenefits to the property as shown by the report of the appraisers, as corrected, that\nwill in any manner impair the security of bonds or the fund available for the\npayment of the principal or interest.\n(3) When he receives the bonds the treasurer shall execute and deliver to the president\nof the board a bond with good and sufficient sureties, to be approved by the board,\nconditioned that he shall account for and pay over as required by law and as ordered\nto do by the board all money received by him on the sale of any bonds, and that he\nwill only sell and deliver the bonds to the purchaser of the bonds according to the\nterms of this section, and that he will return, duly canceled, any bon ds not sold to\nthe board when ordered by it to do so. This bond shall remain in the custody of the\npresident of the board, who shall produce it for inspection or as evidence whenever\nlegally required to do so. The bond of the treasurer may, if the board di rects, be\nsigned by a surety or bonding company, which may be approved by the board. The\nsuccessor in office of any treasurer shall comply with all provisions applicable to\nhis predecessor before receiving bonds or their proceeds. The treasurer shall\npromptly report all sales of bonds to the board.\n(4) The board shall, at reasonable times, prepare and issue warrants for the payment of\nthe maturing bonds sold and the interest payments coming due on all bonds sold.\nEach warrant shall specify what bonds and ac cruing interest it is to pay, and the\ntreasurer shall place sufficient funds at the place of payment to pay the maturing\nbonds and coupons when due, as well as a reasonable compensation to the bank or\ntrust company for paying them, not to exceed two dollar s and fifty cents ($2.50) for\neach one thousand dollars ($1,000) par value of bonds or coupons paid.","path":["KRS Chapter 268"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=12960","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:13Z","sha256":"94a134e52f9a8458711ac54e4ce842da8b4fdb55f7368fe5303bdd2686a23c09","source_id":"us-ky","stale":false,"prev":"us-ky/krs-268.360","next":"us-ky/krs-268.380"},"notice":"GroundRules: Original legal text. Not legal advice."}