{"data":{"id":"us-ky/krs-42.454","jurisdiction":"us-ky","citation":"KRS 42.454","heading":"Membership of Kentucky Coal Fields Endowment Authority -- Terms --","body":"Disclosure of certain ownership interest -- Officers -- Investment options.\n(1) As used in this section:\n(a) \"Authority\" means the Kentucky Coal Fields Endowment Authority;\n(b) \"Board\" means the chair, vice chair, and secretary-treasurer of the authority;\n(c) \"Chair\" means the chair of the Kentucky Coal Fields Endowment Authority;\n(d) \"Commissioner\" means the commissioner of the Department for Local\nGovernment; and\n(e) \"Eligible cou nties\" means counties of the Commonwealth of Kentucky\nparticipating in the local government economic development fund on June 29,\n2017, and those that participated on January 1, 2016.\n(2) The authority shall consist of seven (7) persons, who shall be selected as follows:\n(a) Two (2) persons, appointed by the Governor, from counties located within the\nEastern Coal Field;\n(b) Two (2) persons, appointed by the Governor, from counties located within the\nWestern Coal Field;\n(c) Two (2) persons, appointed by the Governor, possessing experience and\nexpertise in finance and investment; and\n(d) The commissioner or the commissioner's proxy.\n(3) Two (2) members initially appointed to the author ity shall have a term of one (1)\nyear each, two (2) members initially appointed to the authority shall have a term of\ntwo (2) years each, and two (2) members initially appointed to the authority shall\nhave a term of three (3) years each, except that any pe rson appointed to fill a\nvacancy shall serve only for the remainder of the unexpired term. All subsequent\nappointments shall be for a term of three (3) years.\n(4) The board members are hereby determined to be officers and agents of the\nCommonwealth of Kent ucky and, as such, shall enjoy the same immunities from\nsuit for the performance of their official acts as do other officers of the\nCommonwealth of Kentucky.\n(5) If any member or officer of the authority shall be interested in, either directly or\nindirectly, or shall be an officer of, employee of, or have an ownership interest in\nany firm or corporation interested directly or indirectly in any project funded by the\nauthority, the interest shall be disclosed clearly in the application and shall be set\nforth in the minutes of the authority, and the member or officer having an interest\ntherein shall not participate in the application process.\n(6) Any person appointed to the authority shall be eligible for reappointment.\n(7) The members of the authority shall elect biennially from the authority's membership\nthe following offices: chair, vice chair, secretary -treasurer, and any assistant\nsecretaries and assistant treasurers the authority deems necessary. The\ncommissioner shall not be eligible to hold any of these offices.\n(8) A majority of the members of the authority, determined by excluding any existing\nvacancies from the total number of members, shall constitute a quorum. A majority\nvote of the members present at a duly called meeting of the authority shall be\nrequired for the purposes of conducting its business and exercising its powers and\nfor all other purposes.\n(9) The authority shall prepare bylaws and procedures applicable to the operation of the\nauthority and submit them to the commissioner to be promulgat ed as administrative\nregulations in accordance with KRS Chapter 13A.\n(10) Members of the authority shall be entitled to reimbursement for all necessary\nexpenses in connection with the performance of their duties.\n(11) The authority shall meet twice annuall y and at other times upon call of the chair or\na majority of the board to discuss and vote on funding for projects in eligible\ncounties permitted to receive moneys from the authority under KRS 42.453(2).\n(12) The authority may invest any and all of the assets of the fund in:\n(a) Obligations and contracts for future delivery of obligations backed by the full\nfaith and credit of the United States or a United States government agency,\nincluding but not limited to:\n1. United States Treasury;\n2. Export-Import Bank of the United States;\n3. Farmers Home Administration;\n4. Government National Mortgage Corporation; and\n5. Merchant Marine bonds;\n(b) Obligations of any corporation of the United States government or\ngovernment-sponsored enterprise, including but not limited to:\n1. Federal Home Loan Mortgage Corporation;\n2. Federal Farm Credit Banks:\na. Bank for Cooperatives;\nb. Federal Intermediate Credit Banks; and\nc. Federal Land Banks;\n3. Federal Home Loan Banks;\n4. Federal National Mortgage Association; and\n5. Tennessee Valley Authority obligations;\n(c) Collateralized or uncollateralized certificates of deposit, issued by banks rated\nin one (1) of the three (3) highest categories by a nationally recognized\nstatistical rating organization or other interest -bearing accounts in depository\ninstitutions chartered by this state or by the United States, except for shares in\nmutual savings banks;\n(d) Bankers acceptances for banks rated in the highest short -term category by a\nnationally recognized statistical rating organization;\n(e) Commercial paper rated in the h ighest short -term category by a nationally\nrecognized statistical rating organization;\n(f) Securities issued by a state or local government, or any instrumentality or\nagency thereof, in the United States, and rated in one (1) of the three (3)\nhighest long -term categories by a nationally recognized statistical rating\norganization;\n(g) United States denominated corporate, Yankee, and Eurodollar securities,\nexcluding corporate stocks, issued by foreign and domestic issuers, including\nsovereign and supranationa l governments, rated in one (1) of the three (3)\nhighest long -term categories by a nationally recognized statistical rating\norganization;\n(h) Asset-backed securities rated in the highest category by a nationally\nrecognized statistical rating organization;\n(i) Shares of mutual funds, each of which shall have the following\ncharacteristics:\n1. The mutual fund shall be an open -end diversified investment company\nregistered under Federal Investment Company Act of 1940, as amended;\n2. The management company of the  investment company shall have been\nin operation for at least five (5) years; and\n3. The mutual fund shall be rated in the highest category by a nationally\nrecognized statistical rating organization; and\n(j) State and local delinquent property tax claims w hich upon purchase shall\nbecome certificates of delinquency secured by interests in real property not to\nexceed twenty -five million dollars ($25,000,000) in the aggregate. For any\ncertificates of delinquency that have been exonerated pursuant to KRS\n132.220(5), the Department of Revenue shall offset the loss suffered by the\nFinance and Administration Cabinet against subsequent local distributions to\nthe affected taxing districts as shown on the certificate of delinquency.","path":["KRS Chapter 42"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46862","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:02Z","sha256":"d822ded2e3a43760bf60bba370b10e5d49d0130017eadeef0389fcaf5d514cdc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-42.453","next":"us-ky/krs-42.455"},"notice":"GroundRules: Original legal text. Not legal advice."}