{"data":{"id":"us-ky/krs-58.540","jurisdiction":"us-ky","citation":"KRS 58.540","heading":"Power to issue revenue bonds for particular purposes -- Interim financing.","body":"(1) The authority may provide for the issuance of revenue bonds to pay all or any part\nof the cost of the acquisition of the properties of Churchill Downs or expenses\nincident thereto referred to in KRS 58.510, or any part thereof or interest therein,\nand secure the payment thereof by a lien on the properties acquired with the\nproceeds of the bonds.  The bonds shall bear interest at such rate not exceeding ten\npercent (10%) per annum and shall mature at such time not exceeding fifteen (15)\nyears from their date, as may be provided by the authority, and may be made\nredeemable before maturity, at the option of the authority, at a price not less than\nthe face amount thereof and accrued interest thereon.  The proceeds of the bonds\nshall be used solely for the pa yment of the cost of the acquisition of Churchill\nDowns or expenses incident thereto, and shall be disbursed in such manner and\nunder such restrictions, if any, as the authority may provide in the proceedings\nauthorizing the issuance of the bonds or in the trust indenture securing the same.\n(2) Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds\noriginally issued for the acquisition of Churchill Downs or expenses incident\nthereto as provided for in subsection (1) of this section , may issue revenue bonds\npayable solely from the charges, revenues, rentals and other funds pledged for their\npayment, for the purpose of paying all or any part of the cost of the acquisition of\nadditional property, the reconstruction of improvements or the erection of additional\nimprovements, but such revenue bonds shall be subordinate to the revenue bonds\nissued for the original acquisition of Churchill Downs or expenses incident thereto.\n(3) Notwithstanding KRS Chapter 56, the authority, in addition to  the revenue bonds\noriginally issued for the acquisition of Churchill Downs or expenses incident\nthereto as provided for in subsection (1) of this section, and for the acquisition of\nadditional property, the reconstruction of improvements or the erection of additional\nimprovements provided for in subsection (2) of this section, may issue revenue\nbonds payable solely from the charges, revenues, rentals and other funds pledged\nfor their payment, for the purpose of paying all or any part of the cost of further\ndeveloping the museum at Churchill Downs and establishing a facility for the\nexhibition of prior Kentucky Derby and other important races held at Churchill\nDowns as aforesaid, but such revenue bonds shall be subordinate to any then\noutstanding previously issued revenue bonds.\n(4) The authority may agree to or establish any method of interim financing by the\nauthority during the acquisition of additional property, the reconstruction of\nimprovements or the erection of additional improvements hereinbefore pr ovided for\nand in developing the museum at Churchill Downs and establishing a facility for the\nexhibition of prior Kentucky Derby and other important races held at Churchill\nDowns as aforesaid, with borrowed funds from any bank, trust company, or banking\ninstitution, such borrowings to be paid from earnings or through the sale of revenue\nbonds before, during or at completion of such project, but such revenue bonds shall\nbe subordinate to any then outstanding previously issued revenue bonds; and the\ninterest rates, maturities and other provisions shall be such as the authority may at\nthe time of issuance deem to be proper.\n(5) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be\nless than the cost for which issued, additional bonds may in like manner be issued to\nprovide the amount of the deficit, and, unless otherwise provided in the proceedings\nauthorizing the issuance of the bonds or in the trust indenture securing the same,\nshall be deemed to be of the same issue and sha ll be entitled to payment from the\nsame fund without preference or priority of the bonds first issued.  If the proceeds of\nthe bonds of any issue exceed such cost, the surplus shall be deposited to the credit\nof the sinking fund for such bonds or any account therein as the authority shall have\nprovided in the proceedings or trust indenture authorizing and securing the bonds.\n(6) Prior to the preparation of definitive bonds, the authority may, under like\nrestrictions, issue interim receipts or temporary bon ds, with or without coupons,\nexchangeable for definitive bonds when such bonds have been executed and are\navailable for delivery.  The authority may also provide for the replacement of any\nbonds that become mutilated or are destroyed or lost.","path":["KRS Chapter 58"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22860","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:13Z","sha256":"c7f195088e87264d08445f41d2a53ce1296fe7c36df3a11b669a2a0bc015ba38","source_id":"us-ky","stale":false,"prev":"us-ky/krs-58.530","next":"us-ky/krs-58.550"},"notice":"GroundRules: Original legal text. Not legal advice."}