{"data":{"id":"us-ky/krs-58.180","jurisdiction":"us-ky","citation":"KRS 58.180","heading":"Creation of nonprofit corporation to act as an instrumentality of","body":"governmental agency in the financing of public projects.\n(1) (a) As used herein, the term \"public project\" shall have the same meaning as\nascribed to such term by KRS 58.010, and the ter m \"public project\" shall\ninclude, inter alia, but not by way of limitation, public facilities such as\nsewers, sewage treatment works, water systems, streets, sidewalks and other\npublic ways, both vehicular and pedestrian, parks and recreational and sports\nfacilities, hospitals and health facilities, educational facilities, drainage and\nreclamation projects, jails, municipal buildings, public docks, wharves and\nport facilities, solid waste disposal facilities, pollution control systems, mass\ncommuting and tr ansport systems, industrial parks, courthouses and other\npublic buildings, public parking and garage facilities, and other edifices,\nprojects and like things and objects intended for governmental and public\npurposes.\n(b) As used herein, the term \"governmen tal agency\" shall mean any division of\nthe Commonwealth which is a municipal corporation and political subdivision\nof the Commonwealth of Kentucky, or to which has been delegated the right\nto exercise part of the sovereign power of the Commonwealth.\n(2) Any governmental agency may create a nonprofit corporation pursuant to the\nprovisions of KRS 273.161 to 273.390, inclusive, to act as the agency and\ninstrumentality and the constituted authority of such governmental agency in the\nacquisition and financing of  any public project which may be undertaken by such\ngovernmental agency pursuant to the provisions of Kentucky law and thus\naccomplish a public purpose of such governmental agency. Such corporation, upon\ndirection of such governmental agency, shall be auth orized to issue its bonds, notes\nor other obligations on behalf of such governmental agency for the acquisition and\nfinancing of one or more public projects on behalf of such governmental agency,\nand may pledge for the amortization of such bonds, notes or other obligations all\nrevenues derived from the operation of such public project or public projects,\nincluding specifically all revenues derived from the leasing of such public project or\npublic projects directly to the governmental agency upon whose behal f and upon\nwhose direction such bonds, notes or other obligations are issued. Provided,\nhowever, that no bonds or other obligations shall be authorized under the provisions\nof this chapter for the construction or acquisition of telephone, gas, or electric\nfacilities unless such electric facilities are constructed or maintained to provide\nservice solely to the customers of the municipal utility.\n(3) It shall be provided in any such financing (i) that upon the retirement and discharge\nof the bonds, notes or o ther obligations issued by such corporation at the direction\nof and on behalf of such governmental agency, title to the public project or public\nprojects so acquired shall vest in such governmental agency; (ii) that in the event of\ndefault with respect to such bonds, notes or other obligations, the governmental\nagency shall have the exclusive option to acquire the public project or public\nprojects for the amount required to discharge such bonds, notes or other obligations,\nand is provided a reasonable time to exercise such option; (iii) that the issuance of\nsuch bonds, notes or other obligations shall be directed by and approved by such\ngovernmental agency not more than sixty (60) days prior to the date of issue of such\nobligations; and (iv) that no bonds, n otes or other obligations shall be issued by\nsuch corporation for and on behalf of such governmental agency except upon\nexpress direction of such governmental agency.\n(4) Any governmental agency creating a corporation pursuant to this section to act for\nand on behalf of, and as the agency and instrumentality of, such governmental\nagency in the acquisition and financing of a public project or public projects shall,\nat all times either (i) exercise organizational control over such corporation by\ncreating the corporation pursuant to this section, and retain authority at any and all\ntimes to alter or change the structure, organization, programs or activities of the\ncorporation, including the power to terminate existence of the corporation, subject\nto any limitation on the impairment of contracts entered into by such corporation, or\nshall (ii) exercise supervisory control over such corporation as may be deemed\nproper by the governmental agency in the administration of the corporation's\nactivities as a constituted authority of such governmental agency, and as may be\nrequired from time to time by federal law in order to qualify the corporation to issue\nbonds, notes or other obligations on behalf of the governmental agency.\n(5) It shall be provided, inter alia, in the  articles of incorporation of any such\ncorporation and constituted authority created to act as the agency and\ninstrumentality of a governmental agency and to finance public projects for such\ngovernmental agency on its behalf and thereby accomplish a public  purpose of such\ngovernmental agency, (i) that any net revenues of such corporation beyond those\nnecessary for retirement of indebtedness, or implementation of the public purpose\nor purposes of the corporation and the governmental agency shall not inure to  the\nbenefit of any person other than the governmental agency; (ii) that upon dissolution\nof the corporation, title to all property owned by such corporation shall vest in the\ngovernmental agency; and (iii) that the corporation shall be created and operate d\nsolely and only to accomplish one or more of the public purposes of the\ngovernmental agency and for the acquisition and financing of public projects for\nand on behalf of such governmental agency.\n(6) The governing body of such corporation shall consist s olely and only of the\nfollowing individuals:\n(a) Public officials of the governmental agency as ex officio members; or\n(b) Persons appointed by the governmental agency or by public officials of the\ngovernmental agency.","path":["KRS Chapter 58"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22826","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:13Z","sha256":"de690aee3c223d54fae824b35921d46dbc7e9c8cd4e7967fc99b9cf634e72bdf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-58.170","next":"us-ky/krs-58.190"},"notice":"GroundRules: Original legal text. Not legal advice."}