{"data":{"id":"us-ky/krs-58.150","jurisdiction":"us-ky","citation":"KRS 58.150","heading":"Revenue bond anticipation notes.","body":"(1) When the governing body of any county, city, or other municipal corporation, or\nagency thereof, shall make a determination that, in accordance with the provisions\nof any section of the statutes authorizing it to issue revenue bonds, assessment\nbonds, or mo rtgage bonds to finance any project, it will finance a project by the\nissuance of bonds, then in anticipation of financing, the governing body may\nprovide for the interim financing of a project by the sale and issuance of revenue\nbond, assessment bond, or mortgage bond anticipation notes, as the case may be,\nbearing interest at a rate or rates not exceeding the maximum rate permitted for the\nissuance of the bonds so anticipated, and payable within a specified period of time\nonly from the proceeds of the bon ds, when issued, or from the revenues or income\nof the project as may be available prior to or at maturity of the notes; provided that\nthe initial term of the notes shall not be in excess of five (5) years from the date of\nissuance. The term \"revenue bond\"  means bonds, notes, or other obligations for the\npayment of money issued by the state, any county, municipality, or other public\ndistrict or authority except a school district, or any corporation or other corporate\nbody acting as an instrumentality of the  unit, and payable from a special fund into\nwhich some or all of the revenues of a public project have been or will be paid.\n\"Assessment bond\" means bonds, notes, or other obligations for the payment of\nmoney issued by any one (1) or more of the same issui ng authorities payable from a\nspecial fund into which assessments levied on properties for benefits conferred have\nbeen or will be paid in accordance with law. \"Mortgage bond\" means revenue bonds\nwhich are secured by a mortgage deed of trust. A school dist rict shall not be\nexcluded from these definitions if it is authorized by the Kentucky Board of\nEducation, by general or special authorization, to proceed under the authority of this\nsection or KRS 56.513 through the agency of the appropriate city or county.\n(2) The notes authorized herein shall be sold in the same manner as the bonds in\nanticipation of which they are issued.\n(3) Each bond anticipation note may include prepayment provisions which will allow\nthe issuing authority to prepay the note after givi ng reasonable notice to the holder;\nshall identify the bond issue from the proceeds of which the note or notes and any\ninterest thereon are to be paid; and shall include a statement that the note is being\nissued in anticipation of the identified bond issue , and that neither the note, nor the\ninterest, shall constitute or evidence an indebtedness of the issuing authority. Each\nnote and the interest, to the extent not previously paid from other sources, shall be\npaid from the proceeds of the identified bond i ssue, when the proceeds have been\nreceived and are available; provided, however, that payment from the revenues of\nthe project, for the financing of which the bonds will eventually be issued, shall be\npermitted, and provision shall be made for payment of t hat portion of the principal\nof any note issue which represents the principal of the proposed bonds scheduled to\nmature on or prior to the maturity of the notes.\n(4) The notes authorized herein may be issued in a principal amount sufficient to\ninclude all interest due on the notes at or prior to maturity, if the notes shall be\nissued for a term of three (3) years or less, and the notes may be sold at a discount\nrepresenting the interest due to the purchaser during the term.\n(5) When, prior to the maturity of any notes issued under the authority of this section or\nKRS 56.513, the governing body of the issuing authority shall make a determination\nthat by reason of construction delays, changes in plans, uncertainties in the bond\nmarket, or other causes justifyi ng delay in the final offering of the bond issue, the\nbond issue should not immediately be offered, renewal notes may be issued subject\nto the same limitations contained in this section or KRS 56.513 relative to the\noriginal issue of notes, and the proceed s of the sale of the renewal notes shall be\napplied to the payment of the principal of the notes originally issued, or any prior\nissue of renewal notes, or to the payment of interest due or to become due on the\nnotes or renewal notes; provided, however, th at the interest, including discount, if\nany, payable from the proceeds of notes or renewal notes shall not exceed an\namount equal to three (3) years' interest from the date of the original notes at the\nrate per annum established for the original notes.\n(6) Counties, cities, and other municipal corporations, or agencies, in the discretion of\nthe governing body in each case, may, as an alternative to this section and for\ninterim financing purposes, solicit proposals, issue bond anticipation notes, and\nmake co mmitment agreements in the same manner as provided for the State\nProperty and Buildings Commission by KRS 56.513; provided, however, that in the\ncase of notes issued on behalf of a school district, general or special approval of the\nKentucky Board of Educa tion shall be required in substitution for the approval of\nthe State Property and Buildings Commission; and provided further, that the\napproval of the State Property and Buildings Commission will not be required for\nany issue of a county, city, or other mu nicipal corporation, or any agency, and\nreferences to the commission shall be interpreted to be references to the governing\nbody of the issuing authority.\n(7) Nothing herein shall be deemed to invalidate any bond anticipation notes sold or\nissued under general statutes prior to the adoption of this section and KRS 56.513.\n(8) Each bond anticipation note issued according to this section or KRS 56.513, and the\nreceipt of interest on the note, shall be exempt from all taxation by the\nCommonwealth and all of it s subdivisions, municipalities, and taxing authorities;\nand this may be stated as a representation in the text of each bond anticipation note.","path":["KRS Chapter 58"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51334","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:13Z","sha256":"bd29ab844c62fa1eeec3702bc76862c1036b78a0e169b79e8668d037182744cc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-58.140","next":"us-ky/krs-58.155"},"notice":"GroundRules: Original legal text. Not legal advice."}