{"data":{"id":"us-ky/krs-56.063","jurisdiction":"us-ky","citation":"KRS 56.063","heading":"Deposit and use of savings generated as result of refunding transaction.","body":"(1) As used in this section:\n(a) \"Asset/liability commission\" means the Kentucky Asset/Liability Commission\nestablished by KRS 56.861;\n(b) \"Commission\" means the State Property and Buildings Commission\nestablished by KRS 56.450;\n(c) \"General fund\" has the same meaning as in KRS 48.010(15)(a);\n(d) \"Present value savings\" means the difference expressed in terms of current\ndollars between debt service on refunded bonds and debt service on refunding\nbonds;\n(e) \"Refunded bonds\" means outstanding bonds, notes, or  other obligations that\nwere issued at any time, and that are refinanced through a refunding\ntransaction;\n(f) \"Refunding bonds\" means new bonds, notes, or other obligations issued to\nrefund outstanding bonds, notes, or other obligations, including redempti on\npremiums and any interest accrued or to accrue to the date of redemption as\npart of a refunding transaction;\n(g) \"Refunding transaction\" means a transaction:\n1. Whereby outstanding bonds, notes, or other obligations are refunded by\nthe issuance of new refunding bonds, notes, or other obligations; and\n2. That is directly supported in whole or in part by appropriations from the\ngeneral fund or road fund;\n(h) \"Revenue shortfall\" has the same meaning as in KRS 48.010(18);\n(i) \"Road fund\" has the same meaning as in KRS 48.010(15)(g); and\n(j) \"State agency\":\n1. Includes:\na. Any state administrative body, agency, department, or division as\ndefined in KRS 42.005; and\nb. Any board, commission, institution, or division exercising any\nfunction of the state;\nwith the authority to issue bonds, notes, or other obligations, and to enter\ninto refunding transactions with respect to those bonds, notes, or other\nobligations; but\n2. Does not include universities that are part of the postsecondary\neducation system, as defined in KRS 164.001.\n(2) Notwithstanding any other provision of the Kentucky Revised Statutes, the savings\ngenerated from reduced debt service payments during a fiscal biennium as a result\nof any refunding transaction undertaken by the commission, the a sset/liability\ncommission, or any state agency that:\n(a) Results in a reduction in required debt service during the fiscal biennium; and\n(b) Does not result in positive net present value savings;\nshall be deposited in the budget reserve trust fund account  established by KRS\n48.705, and shall not be used as part of any budget -balancing measures adopted or\ntaken by the executive branch either in response to a revenue shortfall, or to address\nexpenditure reductions required by an enacted biennial budget for t he executive\nbranch.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40164","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:10Z","sha256":"851f9c5e8eceef9f7f3fb210ae746e13d2830dda9f624f8fdc6910edd1b339e9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.062","next":"us-ky/krs-56.065"},"notice":"GroundRules: Original legal text. Not legal advice."}