{"data":{"id":"us-ky/krs-76.259","jurisdiction":"us-ky","citation":"KRS 76.259","heading":"Financing methods temporarily inadequate, procedure -- Contracts.","body":"(1) If the district finds as a fact that the methods of financing sewer facilities within a\nconstruction subdistrict provided for in KRS 76.005 to 76.295 will be inadequate,\nuneconomic, or unduly burdensome to the residents to be initially served, the\ndistrict may contract with one or more persons to construct or cause to be\nconstructed a sewer system within the construction subdistrict or to advance or loan\nmoney to the district for the construction of a sewer system within the construction\nsubdistrict. The se wer system constructed must either be conveyed to the district,\nacting for the construction subdistrict, and be a subdistrict facility, or provisions for\nthe eventual conveyance of the system to the district, acting for the subdistrict, must\nbe included in  the contract. When the district finds that one or more financing\nmethods for construction subdistricts established by KRS 76.005 to 76.295,\nexcluding this section, have become feasible, the district may adopt such method or\nmethods to raise the money to p ay for the construction of sewer facilities within the\nconstruction subdistrict or to pay the loan.\n(2) The contract may be made prior to the making of an order establishing the\nconstruction subdistrict. The contract may require that one (1) or more perso ns\nagree to buy construction subdistrict bonds to be issued pursuant to KRS 76.254 in\nan amount specified, which shall be sufficient to finance the construction of the\nsewer system. The maximum price and yield of the bonds shall be stated in the\ncontract. Such contract shall not prevent the district from selling the bonds to a\nlower bidder.\n(3) All contracts made pursuant to this section shall be in writing and shall contain a\ncovenant that this section shall prevail over any contrary feature of the contract.\n(4) The General Assembly declares that the public policy of the Commonwealth will\nnot be offended merely because a contract or loan made pursuant to this section is\nprivately negotiated or because it is made without competitive bidding.\n(5) Bonds sold to one (1) or more contracting parties pursuant to subsection (2) shall be\nindorsed to disclose the nature of the sale. Such bonds, no matter who the holder or\nowner, shall never be eligible to have any payment made on their account pursuant\nto subsection (6) of KRS 76.262.","path":["KRS Chapter 76"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=24524","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:36Z","sha256":"e376c04e2f1e5f3bb58c14d0f91380e0bd0919fc005a35ee98215765b7dacde5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-76.258","next":"us-ky/krs-76.260"},"notice":"GroundRules: Original legal text. Not legal advice."}