{"data":{"id":"us-ky/krs-56.513","jurisdiction":"us-ky","citation":"KRS 56.513","heading":"Interim financing -- Revenue bond anticipation notes -- Loan agreements --","body":"Tax status.\n(1) When the State Property and Buildings Commission makes a determination, in\naccordance with the provisions of this chapter, that one (1) or more building\nprojects or industrial development projects will be financed by the issuance of\nrevenue bonds, then in anticipation of such financing the commission may borrow\nmoney to provide interim financing therefor and issue in evidence thereof its\nrevenue bond anticipation notes, bearing interest at a rate or rates not exceeding the\nmaximum rate permitted for the issuance of such bonds. Such interim financing\nmay be entered into for the commission's own projects, for those of the University\nof Kentucky and the state colleges  or universities or for any other agency of the\nCommonwealth where approval by the commission is required regarding the\nissuance of revenue bonds of such an agency. In instances where the revenue bonds\ninvolved are to be issued by other agencies, such agen cies, with the prior approval\nof the commission, may borrow money in the same manner and for the same\npurpose and issue in evidence thereof their own revenue bond anticipation notes,\naccording to rules and regulations promulgated by the commission.\n(2) The commission shall solicit proposals for such interim financing from at least three\n(3) responsible lenders, and shall select in its discretion the best of such proposals\nconsistent with sound financial practices. A selection may be made even though less\nthan three (3) proposals are received. The term of any such revenue bond\nanticipation note shall not exceed five (5) years; and the same may be renewed, if\nnecessary.\n(3) Each revenue bond anticipation note may include prepayment provisions which will\nallow the commission or other borrowing agency to prepay the loan after giving\nreasonable notice to the lender; shall identify the revenue bond issue from the\nproceeds of which the note or notes and any interest thereon are to be paid; and\nshall include a statem ent that the note is being issued in anticipation of the\nidentified revenue bond issue, and that neither the note, nor the interest thereon,\nshall constitute or evidence an indebtedness of the Commonwealth of Kentucky.\nEach such note and the interest there on (to any extent not previously paid from\nother sources) shall be paid from the proceeds of the identified revenue bond issue,\nwhen such proceeds have been received and are available.\n(4) Instead of borrowing money and issuing revenue bond anticipation no tes in the full\namount necessary for construction contract purposes, the commission (or such\nagencies with the prior approval of the commission and according to its rules and\nregulations), may enter into loan agreements with one (1) or more lenders\n(determined by the commission to be responsible) according to the terms of which it\nmay be agreed:\n(a) That the lender will continuously make available to the borrowing agency a\nstated maximum amount of money for a stated period of time;\n(b) That the borrowing ag ency may demand and obtain cash advances against\nsuch commitment from time to time upon reasonable and agreed notice, and\nupon issuing in evidence of each advance a bond anticipation note which will\nbear an agreed rate of interest, not exceeding the maximu m rate permitted for\nthe issuance of the proposed bonds; and\n(c) That in consideration of the making of such loan agreement the borrowing\nagency will pay to the lender or lenders a commitment fee determined by the\ncommission to be reasonable according to f inancial conditions existing at the\ntime the loan agreement is made.\nSuch loan agreements may be recorded as receivables upon the books of account of\nthe commission, the secretary of the Finance and Administration Cabinet, or other\nborrowing agency, and c onstruction contracts may be awarded against the same to\nthe amount of money which the lender contractually agrees to make available to the\nborrowing agency, the same as in the case of loan agreements made with\ndepartments or agencies of the United States government.\n(5) Each revenue bond anticipation note issued according to this section, and the receipt\nof interest thereon, shall be exempt from all taxation by the Commonwealth and all\nof its subdivisions, municipalities, and taxing authorities; and this m ay be stated as\na representation in the text of each such revenue bond anticipation note.\n(6) The State Property and Building Commission and other state agencies authorized to\nissue revenue bond anticipation notes under the terms of this section may, as an\nalternative and if authorized to do so by the governing body of such commission or\nagency, adopt the procedures for interim financing established for counties, cities,\nand other municipal corporations, or their agencies, by KRS 58.150.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22651","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:11Z","sha256":"89462b545d973c12cd58bb7af3df1247fdf6f96f004a7276e2b49f66c81dc74f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.510","next":"us-ky/krs-56.514"},"notice":"GroundRules: Original legal text. Not legal advice."}