{"data":{"id":"us-ky/krs-67a.891","jurisdiction":"us-ky","citation":"KRS 67A.891","heading":"Uses of sinking fund.","body":"All sums received and deposited in the sinking fund shall be held inviolate and applied by\nthe government, or the trustee in respect of the bonds solely for the payment of the\nprincipal of, and interest on, the bonds issued for the financing of the identif ied project.\nThe amount levied, collected and deposited in the sinking fund from initial improvement\nassessment levies in connection with the project, in excess of maturing principal and\ninterest of the bonds and equal to twenty percent (20%) of maximum annual principal and\ninterest requirements, for the purpose of creating the debt service reserve fund shall be\nheld in the sinking fund as a special reserve for that purpose.  Such excess levies shall\ncontinue annually until the debt service reserve require ment has been accrued in the debt\nservice reserve fund in respect of all outstanding bonds; provided that the debt service\nreserve requirement may be funded from the proceeds of the bonds.  If, at the time of any\nannual levy of the improvement assessment, the sum held in the sinking fund as debt\nservice reserve fund shall exceed the debt service reserve requirement, such excess may\nbe taken into account in fixing the rate of the improvement benefit assessment for the\nensuing year; and if the amount so held in the debt service reserve fund is below the\nspecified level, the next annual improvement assessment levy shall be increased in a\ncorresponding manner so as to accrue the debt service reserve requirement.  In making the\nimprovement assessment levy for the  year preceding the final maturity of bonds for any\nproject, the urban -county council may take into account, and make allowance for the\namount held in the sinking fund of the project as the debt service reserve fund; and if in\nmaking the levy the urban -county council shall miscalculate and provide funds\ninsufficient to pay the final maturing principal and interest, the governing body shall be\nauthorized, and shall be required, to make a subsequent improvement assessment levy\nupon the benefited properties sufficient to make up the deficiency, with interest to date of\npayment.  If the procedures required by KRS 67A.871 to 67A.894 shall result in a surplus\nafter payment and discharge of the bonds, and all interest thereon to date of payment,\nsuch surplus shall be refunded, pro rata, to the owners of benefited properties, as\ndetermined at the date the surplus is ascertained by the governing body to exist.","path":["KRS Chapter 67A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23974","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:28Z","sha256":"dff636bcf78831e7391a28653d14d9fc1ad2f578ed1f761245f0304d7a66eb99","source_id":"us-ky","stale":false,"prev":"us-ky/krs-67a.890","next":"us-ky/krs-67a.892"},"notice":"GroundRules: Original legal text. Not legal advice."}