{"data":{"id":"us-ky/krs-342.829","jurisdiction":"us-ky","citation":"KRS 342.829","heading":"Funding of authority -- Restrictions on use of funds.","body":"(1) The authority shall not receive any direct state general fund appropriation.\n(2) Initial funding for the authority shall be determined by the Governor and the\nsecretary of the Finance and Administration Cabinet. Funding methods may include,\nbut not be limi ted to, a loan from an existing state agency or agencies to the\nauthority. The maximum amount borrowed from all state agencies shall not exceed\nseven million dollars ($7,000,000), to be repaid over a period not to exceed ten (10)\nyears from the original lo an date. The Governor shall have the authority to provide\nor secure additional funding necessary to maintain, for the first thirty -six (36)\nmonths of its operation, the surplus the Governor deems proper. The additional\nfunding may come from any funds which may be expended directly by the Governor\nor from nonstate -agency sources and, regardless of source, shall be a loan to the\nauthority. The rate of interest to be applied to the loan shall be one percent (1%)\nhigher than the average for the long-term investment folder of the lending agency on\nthe anniversary date of the original loan. The interest rate shall be adjusted annually\non the anniversary date of the original loan. To minimize cash requirements and\ninterest obligations, the loan shall be executed as  a line of credit against the lending\nagency, so that only those funds actually required for initial start -up operations,\nincluding the establishment of a surplus and reinsurance expenses, are drawn down\non an \"as needed\" basis.\n(3) Any executive branch ag ency of the Commonwealth and any public corporation\ncreated by the Commonwealth, any statute to the contrary notwithstanding, may\nlend money to the authority subject to the terms and conditions of this section, and\nany loan made pursuant to this section sh all not be construed as a breach or\nviolation of fiduciary duties contained in KRS Chapter 386.\n(4) Funds collected by the authority shall not:\n(a) Be loaned to the Commonwealth or any instrumentality or agency thereof;\n(b) Be subject to transfer to the Co mmonwealth or any agency or instrumentality\nthereof, except for repayment of the loan authorized in subsections (2) and (3)\nof this section; or\n(c) Be expended for any other purposes than as authorized by KRS 342.801 to\n342.843 and KRS 304.13-340.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32574","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:32Z","sha256":"2f7f1ee20cf921f22d5a3f2bf3291046973416bb079cdaa931d1dae1ea6c6e1b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.827","next":"us-ky/krs-342.831"},"notice":"GroundRules: Original legal text. Not legal advice."}