{"data":{"id":"us-ky/krs-56.8605","jurisdiction":"us-ky","citation":"KRS 56.8605","heading":"Definitions for KRS 56.860 to 56.869.","body":"As used in KRS 56.860 to 56.869:\n(1) \"Authorized project\" means:\n(a) Any project approved by the General Assembly and included in an enacted\nbudget; or\n(b) Any project approved by the General Assembly that is certified by the\nsecretary of the Finance and Administration Cabinet in accordance w ith the\nprovisions of KRS 56.870, to be of a type that will independently produce\nrevenues or will be payable from receipts of federal transportation funds that\nare projected by the commission to be sufficient to fully meet debt service,\nissuance costs, re serve fund requirements, insurance premiums, or any other\nexpenditures necessary for financing so that no appropriation of state funds is\nrequired;\n(2) \"Cabinet\" means the Finance and Administration Cabinet;\n(3) \"Commercial paper\" means obligations that by  their terms mature not more than\nthree hundred sixty -six (366) days from the date of their issuance and that may be\nrefunded;\n(4) \"Commission\" means the Kentucky Asset/Liability Commission;\n(5) \"Estimated revenues\" means the official revenue estimates est ablished pursuant to\nKRS 48.120 on or before the dates on which tax and revenue anticipation notes are\nawarded to the purchaser;\n(6) \"Financial agreements\" means interest rate swaps, options, or other agreements\nbetween two (2) parties to exchange or have the conditional right to exchange\ninterest rate exposure from fixed rate to variable rate or from variable rate to fixed\nrate, or to provide other economic benefit to an issuance of notes or a portfolio of\nnotes, or to hedge the net interest margin of the Commonwealth;\n(7) \"Financing agreement\" means an agreement between the commission and the\ncabinet, or between the cabinet and a state agency, relating to the funding of\nprojects or items associated with projects as described in KRS 56.867(3), a\njudgment against a state agen cy or the Commonwealth, or the finance or refinance\nof obligations owed under KRS 161.550(2). The provisions of a financing\nagreement shall require either the cabinet to make payments to the commission\nrelating to the commission's issuance of notes, or the  state agency to make\npayments to the cabinet reimbursing the cabinet for its payments to the commission\non the agency's behalf. The obligations of the cabinet or the state agency under a\nfinancing agreement shall be contingent upon appropriations by the G eneral\nAssembly to the cabinet or to the agency for the payment of those obligations;\n(8) \"Fixed-rate obligations\" means obligations on which the interest rate remains\nconstant to maturity;\n(9) \"Funding notes\" means notes issued under the provisions of KRS  56.860 to 56.869\nby the commission for the purpose of funding:\n(a) Judgments, with a final maturity of not more than ten (10) years; and\n(b) The finance or refinance of obligations owed under KRS 161.550(2);\n(10) \"Interest-sensitive assets\" means tangible  and intangible property held by the\nCommonwealth whose market value is dependent upon the level of interest rates;\n(11) \"Interest-sensitive liabilities\" means interest -bearing debts or other obligations of\nthe Commonwealth or a state agency;\n(12) \"Multimodal obligations\" means obligations for which the time period for\nestablishing the rate of interest may be selectively determined and altered;\n(13) \"Net interest margin\" means the net income or expense associated with the\ndifference between the Commonwealth 's interest -sensitive assets and interest -\nsensitive liabilities;\n(14) \"Project notes\" means notes issued under the provisions of KRS 56.860 to 56.869\nby the commission with a final maturity of not more than twenty (20) years for the\npurpose of funding authorized projects, which may include bond anticipation notes;\n(15) \"State agency\" means any state administrative body, agency, department, or\ndivision as defined in KRS 42.005, and set out in KRS Chapter 12, or any board,\ncommission, institution, state unive rsity, or division exercising any function of the\nCommonwealth;\n(16) \"Tax and revenue anticipation notes\" means notes that are issued under the\nprovisions of KRS 56.860 to 56.869 by the commission with a final maturity that is\nno later than the last day of  the fiscal year during which the tax and revenue\nanticipation notes are issued and that are issued in anticipation of estimated\nrevenues to be received in that fiscal year; and\n(17) \"Variable-rate demand obligations\" means obligations on which the rate of  interest\nis set by reference to a predetermined index or formula, by auction, by an agent\nthat, in the sole judgment of the commission, has the financial expertise to establish\nmarket interest rates, or by similar means.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56073","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:12Z","sha256":"43fca99b81efaf6c2f2dd743094c88cb39a0253325004a6b1dd8205268c9215a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.860","next":"us-ky/krs-56.861"},"notice":"GroundRules: Original legal text. Not legal advice."}