{"data":{"id":"us-ky/krs-56.872","jurisdiction":"us-ky","citation":"KRS 56.872","heading":"Applicability -- Report of secretary of Finance and Administration Cabinet","body":"to General Assembly -- Procedure when cost exceeds cost approved by General\nAssembly.\n(1) Notwithstanding the provisions of KRS 56.870(1), KRS 56.870 to 56.874 shall not\napply to any financing by the Turnpike Authority of Kentucky until July 1, 1982,\nand shall not apply to any refinancing transaction by any agency, authority, board,\ncorporation, cabinet, commission or other agency or instrumentality of the\nCommonwealth, if such refinancing transaction results in a net debt service savings\nto such agency, authority, board, corporation, cabinet, commission or other agency\nor instrumentality of the Commonwealth.\n(2) The secretary of the Finance and Administration Cabinet shall report  to the General\nAssembly in the branch budget recommendation, defined in KRS 48.010, on the net\ndebt service savings, any funds released from a debt service reserve fund or any\nother funds generated as a result of any refinancing or other mechanism approve d\nby any agency, authority, board, corporation, cabinet, commission or other agency\nor instrumentality of the Commonwealth after July 15, 1986. No portion of any net\ndebt service savings realized subsequent to a refinancing or open market bond\npurchase and available during the biennium in which the savings are realized, any\ndebt service reserve fund released or other funds generated shall be expended for\nany of the purposes for which such agency, authority, board, corporation, cabinet,\ncommission, or agency or instrumentality of the Commonwealth may be authorized\nby law to perform. The General Assembly shall on a biennial basis appropriate the\nnet debt service savings as described, any debt service reserve fund or other funds\ngenerated, reported by the Finance and Administration Cabinet, to a special escrow\naccount for each bond issue within the Finance and Administration Cabinet. The\nproceeds within this account shall be used to accelerate the payment of outstanding\nprincipal and interest, either through ope n market bond purchases or investments at\nmaximum yield, in addition to the amounts budgeted for such purposes over the\nbiennium, on definitive bonds, temporary bonds or interim financing secured by\nbond anticipation notes, loan agreements or other means i ssued by an agency,\nauthority, board, corporation, cabinet, commission or other agency or\ninstrumentality of the Commonwealth. The Finance and Administration Cabinet\nshall report to the General Assembly on a biennial basis the amount of total funds\nutilized in the escrow account to retire the outstanding principal and interest and the\namount of principal and interest so retired, or to be retired, for each agency,\nauthority, board, corporation, cabinet, commission or other agency or\ninstrumentality of the Co mmonwealth. In the event that the funds appropriated to\nthe escrow account cannot be used in the biennium for the purposes prescribed by\nthis subsection, the Finance and Administration Cabinet shall so report and provide\nthe reasons therefor. The funds app ropriated shall not lapse at the end of the\nbiennium but be carried forward to the next biennium to be utilized for the purposes\nprescribed by this subsection.\n(3) In the event the cost of an authorized bond project exceeds its estimated cost, as\napproved by the General Assembly, the financing of such project may be authorized\nupon approval by the secretary of the Finance and Administration Cabinet, so long\nas such cost does not exceed the estimated cost by more than twenty -five percent\n(25%). In the case o f financing of any bond project approved by the General\nAssembly, the costs of issuance of bonds or notes shall be added to project costs in\ndetermining the principal amount of authorized financing of any such project.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22745","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:12Z","sha256":"99bc378a5bf0130ef56f37f148c7131b2638d07c3bda9dbd051aafc09984b156","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.871","next":"us-ky/krs-56.873"},"notice":"GroundRules: Original legal text. Not legal advice."}