{"data":{"id":"us-ky/krs-56.868","jurisdiction":"us-ky","citation":"KRS 56.868","heading":"Funding notes -- Purposes -- Sale and issuance -- Approval -- Status of notes","body":"with respect to the Commonwealth and its political subdivisions.\n(1) The commission may issue and sell funding notes for the purposes of funding\njudgments against the Commonwealth or any state agency and financing or\nrefinancing obligations owed under KRS 161.550(2). Funding notes may be sold\nand issued in a manner and have terms relating to the payment of interest, principal,\nand premiums or discounts as market conditions warrant.\n(2) Appropriations requests for payment of principal and interest on funding notes shall\nbe made by the state agency against which a judgment has been rendered or, in the\ncase of financing or refinancing obligations owed under KRS 161.550(2), to the\nKentucky Teachers' Retirement System. Funding notes, together with interest\nthereon, shall be repaid from payments received by the commission from the\ncabinet under a financing agreement.\n(3) Funding notes may be issued for the following purposes:\n(a) To pay for judgments, which shall include legal settlements, court -ordered\nactions against the Commonwealth or any state agency, and any part of any\nexpense or cost incidental to legal settlements or court -ordered actions against\nthe Commonwealth or any state agency;\n(b) To finance or refinance obligations owed under KRS 161.550(2); and\n(c) To refund outstanding issues of funding notes.\n(4) The issuance of funding notes shall be subject to KRS 56.870, to approval by the\nState Property and Buildings Commi ssion, and to review by the Capital Projects\nand Bond Oversight Committee pursuant to KRS 45.810.\n(5) The cabinet, in providing for the expenditure of funds for any of the purposes\nmentioned in this section, may provide by a financing agreement with the st ate\nagency so affected for the funding of the Commonwealth's or that state agency's\njudgment, and the state agency so affected is authorized to enter into a financing\nagreement with the cabinet for that purpose.\n(6) Funding notes shall not constitute a deb t of the Commonwealth or any political\nsubdivision thereof or a pledge of the faith and credit of the Commonwealth or any\npolitical subdivision, but the notes shall be payable solely from payments received\nunder the financing agreement relating to the funding notes.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56074","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:12Z","sha256":"eebc95d209ad898e76d9081f1eb9a75614c7b6021db4bb94ebadbdd344791995","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.867","next":"us-ky/krs-56.869"},"notice":"GroundRules: Original legal text. Not legal advice."}