{"data":{"id":"us-ky/krs-65.114","jurisdiction":"us-ky","citation":"KRS 65.114","heading":"Investment in securitized bonds -- Limitations -- Determination of","body":"connection by commission -- Limitation on adverse governmental actions\naffecting rights in securitized property.\n(1) All of the following entities may legally invest any sinkin g funds, moneys, or other\nfunds, in securitized bonds:\n(a) Subject to applicable statutory restrictions on state or local investment\nauthority, the Commonwealth, units of local government, political\nsubdivisions, public bodies, and public officers, except for:\n1. Members of the commission;\n2. The commission's technical advisory and other staff; and\n3. Employees of the Attorney General's Office of Rate Intervention;\n(b) Banks and bankers, savings and loan associations, credit unions, trust\ncompanies, savings  banks and institutions, investment companies, insurance\nassociations, and other persons carrying on a banking or insurance business;\n(c) Personal representatives, guardians, trustees, and other fiduciaries; and\n(d) All other persons authorized to invest i n bonds or other obligations of a\nsimilar nature.\n(2) Any determination of the co mmission made in connection with any financing order\nand any financing order of the commission issued pursuant to this subsection shall\nbe a binding, irrevocable, and final order of the commission, and binding on the\ncommission and the Commonwealth. The Co mmonwealth and its agencies,\nincluding the commission, pledge and agree with bondholders, the owners of the\nsecuritized property, and other financing parties that the Commonwealth and its\nagencies shall not undertake any of the prohibited actions listed in  this subsection.\nThis subsection shall not preclude limitation or alteration, if full compensation is\nmade by law for the full protection of the securitized surcharges collected pursuant\nto a financing order and of the bondholders, any assignee, or financ ing party\nentering into a contract with the electric utility. The Commonwealth and its\nagencies, including the commission, shall not:\n(a) Alter the provisions of KRS 278.670 to 278.696 and 65.114 which authorize\nthe commission to create an irrevocable cont ract right or right to sue by the\nissuance of a financing order creating securitized property, making the\nsecuritized surcharges imposed by a financing order irrevocable, binding, or\naffecting the nonbypassable charges for all existing and future retail\ncustomers of the electric utility;\n(b) Take or permit any action that impairs or would impair the value of\nsecuritized property or the security for the securitized bonds or revises the\nsecuritized costs for which recovery is authorized;\n(c) In any way impair  the rights and remedies of the bondholders, assignees, and\nother financing parties; and\n(d) Except for changes made pursuant to the formula -based true -up mechanism\nauthorized under KRS 278.678, reduce, alter, or impair securitized surcharges\nthat are to be imposed, billed, charge, collected, and remitted for the benefit of\nthe bondholders, any assignee, and any other financing parties until any and\nall principal, interest, premium, financing costs, and other fees, expenses, or\ncharges incurred, and any con tracts to be performed, in connection with the\nrelated securitized bonds have been paid and performed in full.\n(3) Any person or entity that issues securitized bonds may include the language\nspecified in this subsection in the securitized bonds and related documentation.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53813","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"e6cd635cc8d16a3f7ab2bbd4c31044ebd7922c84e4cab74bad00f55846f4b1c4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.113","next":"us-ky/krs-65.115"},"notice":"GroundRules: Original legal text. Not legal advice."}