{"data":{"id":"us-ky/krs-56.514","jurisdiction":"us-ky","citation":"KRS 56.514","heading":"Types of bonds issuable to finance industrial development projects or","body":"building projects -- Terms -- Issuance -- Marketing -- Refunding.\nThe following provisions shall be applicable to commission financing to carry out the\npurposes of this chapter:\n(1) As used in this section, the following terms shall have the following meanings:\n(a) \"Commercial paper revenue bonds\" means revenue bond anticipation notes\nwhich by their terms mature not more than two hundred seventy (270) days\nfrom the date of issuance th ereof and are to be refunded by the issuance of\ncommercial paper revenue bonds or by refunding revenue bonds; provided,\nhowever, that all commercial paper revenue bonds must possess the\ncharacteristics set forth and described in subsection (3)(d) of this section;\n(b) \"Refunding revenue bonds\" means revenue bonds issued by the commission\nto refund outstanding issues of revenue bonds, commercial paper revenue\nbonds and variable rate revenue bonds; and\n(c) \"Variable rate revenue bonds\" means revenue bonds the rate of interest on\nwhich fluctuates either automatically by reference to predetermined formulas\nand indices or pursuant to the standards set forth in subsection (3)(e) of this\nsection.\n(2) The commission may issue and sell revenue or other authorized bond s, including\nvariable rate and commercial paper bonds, to pay all or any part of the expense or\ncost of or incidental to an industrial development project, or a building project in\ndenominations and amounts, as it deems to be for the best interest of the\nCommonwealth.\n(3) (a) Revenue bonds issued to pay the costs of industrial development projects or\nbuilding projects may bear interest at any rate or rates, either fixed or variable\nin accordance with such method as shall be determined by the commission,\nshall be payable either annually or at shorter intervals, may be of such terms\nand maturities, may bear such conversion privileges, may be executed by the\nmanual or facsimile signatures of such officers of the commission, and shall\nbe executed in such manner and at such time or times, or from time to time,\nand be payable at such times not exceeding forty (40) years from the date\nthereof, or, if commercial paper, from the date of initial issuance thereof, and\nat such place or places as the commission determines;\n(b) Such revenue bonds may provide that they or any of them may be called for\nredemption prior to maturity under conditions determined by the commission\nbefore issuing the bonds;\n(c) Such revenue bonds may, at any time on or after the earliest redemption  date\nprovided therefor at the time of their issuance, be refunded by the\ncommission, in such amount as the commission may deem necessary to refund\nthe principal of the revenue bonds to be refunded, together with any unpaid\ninterest thereon, to create any necessary debt service reserve fund, and to pay\nany premiums, expenses, and commissions required to be paid in connection\ntherewith;\n(d) At the time of the initial issuance of commercial paper revenue bonds to pay\nthe costs of industrial development projec ts or building projects, the\ncommission may designate individual officials of any state agency as agents\nfor purposes of approving the principal amount, the interest rate, the discount,\nif any, and the maturity date of revenue bonds being issued later to r efund the\nmaturing commercial paper revenue bonds; provided, however, that at the\ntime of the initial issuance of any such commercial paper revenue bonds, the\ncommission shall set the maximum principal amount, the maximum interest\nrate, and the maximum dis count, if any, of the refunding revenue bonds plus\nthe final maturity date of the last issue of such refunding revenue bonds; and\nprovided further that the commission shall retain the right to revoke any such\nagent's authority at any time and for any reaso n whatsoever. Individual issues\nof commercial paper revenue bonds, issued as part of a continuing financing\nprogram, may be refunded by the approvals of such agents of the commission;\n(e) At the time of issuance of variable rate revenue bonds to pay the co sts of\nindustrial development projects or building projects, the commission may\ndesignate individuals or institutions which in the sole judgment of the\ncommission have financial market expertise to serve as agent for the\ncommission for establishing and cha nging from time to time while such\nvariable rate revenue bonds remain outstanding the rate of interest to be borne\nby and the price to be paid for such revenue bonds; provided, however, that\nthe rate-setting procedures and authority of each such agent shal l be set forth\nin writing, and may include a formula or an index or indices based upon\nmarket factors, and shall be established by the commission at the time of\nissuance of such revenue bonds; and provided further that at the time of the\nissuance of such revenue bonds, the commission shall establish the maximum\ninterest rate to be borne by the revenue bonds; and provided further that the\ncommission shall retain the right to remove or replace any such agent at any\ntime and for any reason whatsoever;\n(f) Any revenue bonds issued and outstanding hereunder to pay the costs of\nindustrial development projects or building projects and the interest due on\nsuch revenue bonds shall, prior to the maturity or redemption date thereof, be\ndeemed to have been paid to the s ame extent as if they had actually been paid\nin cash and retired, if:\n1. In the event any of such revenue bonds are to be redeemed on any date\nprior to their maturity, the commission shall have given a trustee\nappointed for the holders of such revenue bonds in connection with their\nissuance, in form satisfactory to such trustee  and in conformity with the\nrequirements of the resolution authorizing their issuance irrevocable\ninstructions to give notice of redemption of such revenue bonds to the\nholders thereof by written notice which is satisfactory to such trustee;\n2. There shall  have been deposited with the trustee either money in an\namount which shall be sufficient, or direct obligations of or obligations\nguaranteed by the United States of America, or other obligations\nspecified by the commission, the principal of and the intere st on which,\nwhen due, will provide money which, together with the money, if any,\ndeposited with the trustee at the same time, shall be sufficient to pay\nwhen due the principal and the interest due and to become due on such\nrevenue bonds on and prior to re demption date or maturity date thereof,\nas the case may be; and\n3. In the event that such revenue bonds are not to be redeemed within the\nnext succeeding sixty (60) days, the commission shall have given the\ntrustee in form satisfactory to it irrevocable in structions to give, as soon\nas practicable, in a manner satisfactory to it, a notice to the holders of\nsuch revenue bonds that the deposit required by subparagraph 2. of this\nparagraph has been made with the trustee, that such revenue bonds are\ndeemed to have been paid in accordance with the provisions hereof and\nstating such maturity or redemption date upon which money is to be\navailable for the payment of the principal of and interest on such\nrevenue bonds;\n(g) It is hereby declared and determined that the issuance of any and all refunding\nbonds as provided herein will be for a public purpose if the commission so\ndeclares in the proceedings authorizing same; and\n(h) If any officer whose signature or countersignature appears on revenue bonds\nissued to pay the costs of industrial development projects or building projects\nceases to be such officer before delivery of the bonds, his signature or\ncountersignature shall nevertheless be valid and sufficient for all purposes the\nsame as if he had remained in office until delivery. Any such revenue bonds\nissued to pay the costs of industrial development projects or building projects\nshall be sold upon such terms as the commission deems best, either at public\nor private sale, and for such price, as the commission may d etermine. In the\nevent the revenue bonds are sold at private, negotiated sale, the commission\nshall publish in accordance with the requirements of KRS Chapter 424 a\nnotice of the intent of the commission to negotiate the sale of such revenue\nbonds within thirty (30) days of such proposed sale, which notice shall include\nthe identification and description of such revenue bonds, an estimate of the\nweek during which the negotiated sale is expected to occur and the identity of\nthe state officer or agency and the fiscal advisor or managing underwriter from\nwhom further information regarding the revenue bonds may be obtained.\nRevenue bonds, notes, or other obligations issued by the commission under\nthis chapter, the income thereon, and the transfer thereof, includ ing any profit\nmade on the sale thereof, shall at all times be exempt from taxation or\nassessment of any type by the Commonwealth, its agencies and departments,\nand by all political subdivisions within the state. Nothing contained in this\nsection shall pre clude or prevent the authorization and issuance by the\ncommission from time to time of revenue bonds, notes, or other obligations,\nthe receipt of interest on which may be subject to federal income taxation.\n(4) The payment of revenue bonds issued to pay th e cost of an industrial development\nproject or building project, together with the interest thereon, may be secured by a\npledge of and a first lien on all of the receipts and revenue derived, or to be derived,\nfrom the rental, financing, or operation of th e industrial development projects or\nbuilding projects involved, including rentals and financing payments made by the\nFinance and Administration Cabinet from appropriated funds on a biennial basis,\npursuant to lease agreements or financing agreements betwe en the Finance and\nAdministration Cabinet and the commission. Neither the payment of any revenue\nbond, nor the interest thereon, issued under the authority of this section shall\nconstitute an indebtedness of the Commonwealth of Kentucky, nor shall any\nrevenue bond or interest thereon be payable out of any fund except funds derived\nfrom rentals, financing payments, or other revenues derived from the operation of\nthe industrial development projects or building projects or from revenues as are\navailable for the purpose by law.\n(5) If revenue bonds are sold at public, competitive sale, the revenue bonds issued by\nthe commission under the provisions of this section shall be sold after notice\nadequate to inform the public of the sale. Notice may include posting on the Internet\nor newspaper advertising.\n(6) If revenue bonds are sold at public, competitive sale, competitive bids for the sale of\nthe revenue bonds shall be opened and read publicly by the secretary of the Finance\nand Administration Cabinet or the secret ary's representative at a designated place,\nday, and hour, all of which shall be announced in the notice made relative thereto.\n(7) All money from the sale of revenue bonds issued pursuant to this section shall be\ndeposited in the State Treasury and shall be credited to a special account to be\ndesignated as directed by the Finance and Administration Cabinet, and no part\nthereof shall be withdrawn from the State Treasury except for the purposes\nauthorized by this chapter, together with the cost incidental to  the issuing and\nselling of the revenue bonds and other expenses directly related thereto. The\ncommission may provide in any trust indenture securing revenue bonds for\nadditional terms and conditions thereof, or for other restrictions not in conflict with\nthis chapter.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22652","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:11Z","sha256":"f809d22d274432a401ea633ff3ac168c3662e647f471abcc57254ef26eccbf9d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.513","next":"us-ky/krs-56.515"},"notice":"GroundRules: Original legal text. Not legal advice."}