{"data":{"id":"us-ky/krs-99.430","jurisdiction":"us-ky","citation":"KRS 99.430","heading":"Bonds, notes, and obligations of the agency.","body":"(1) Any agency shall have power to issue revenue bonds from time to time at its\ndiscretion for any of its corporate purposes under KRS 99.330 to 99.510. An agency\nshall also have power to issue refunding bonds for the purpose of paying or retiring\nbonds previo usly issued by it. An agency may issue revenue bonds on which the\nprincipal and interest are payable:\n(a) Exclusively from the income and revenues of the redevelopment project or\nprojects financed from the proceeds of the bonds; or\n(b) Exclusively from the  income and revenues together with grants and\ncontributions from the federal government or other sources. Any bonds may\nbe additionally secured by a mortgage, deed of trust, or other lien or\nencumbrance on the property in the redevelopment project or proje cts\nfinanced from the proceeds of the bonds.\n(2) Neither the members of an agency or any person executing the bonds shall be liable\npersonally on the bonds by reason of the issuance of the bonds. The bonds and other\nobligations of an agency (and the bonds and obligations shall so state on their face)\nissued under this section shall not be a debt of the city, the county, the State, or any\npolitical subdivision of the State within the meaning of any constitutional or\nstatutory debt limitation or restriction and neither the city, the county, the State, nor\nany political subdivision of the State shall be liable, nor in any event shall the bonds\nor obligations be payable out of any funds or properties other than those of the\nagency.\n(3) Bonds of an agency shall b e authorized by its resolution. The bonds may be issued\nin one (1) or more series and shall bear a date or dates, mature at a time or times,\nbear interest at a rate or rates or method of determining rates, be in a denomination\nor denominations, be in form,  either coupon or registered, carry conversion or\nregistration privileges, have rank or priority, be executed in a manner, be payable in\na medium of payment, at a place or places, and be subject to the terms of\nredemption (with or without premium) as the r esolution, its trust indenture, or\nmortgage may provide.\n(4) The bonds may be sold at public sale held after notice has been given by publication\npursuant to KRS Chapter 424. The bonds, however, may be sold to the federal\ngovernment at private sale without advertisement.\n(5) In case any of the members or officers of the agency whose signatures appear on\nany bonds, coupons, notes, or other obligations shall cease to be members or\nofficers before the delivery of the bonds, coupons, notes, or other obligations , the\nsignatures shall, nevertheless, be valid and sufficient for all purposes, the same as if\nthey had remained in office until delivery of the bonds. Any provision of any law to\nthe contrary notwithstanding, any bonds, coupons, notes, or other obligations issued\npursuant to KRS 99.330 to 99.510 shall be fully negotiable.\n(6) In any suit, action, or proceedings involving the validity or enforceability of any\nbonds of an agency or their security, any bonds reciting in substance that they have\nbeen issued by  the agency to aid in financing a redevelopment project shall be\nconclusively deemed to have been issued for a redevelopment project and the\nproject shall be conclusively deemed to have been planned, approved, located, and\ncarried out in accordance with th e purposes and provisions of KRS 99.330 to\n99.510.\n(7) In connection with the issuance of bonds, an agency, in addition to its other powers,\nshall have power:\n(a) To pledge all or any part of its gross or net revenue to which its right then\nexists or may thereafter come into existence;\n(b) To encumber (by mortgage, deed of trust, or otherwise) all or any part of its\nreal or personal property in the redevelopment project;\n(c) To covenant against pledging all or any part of its revenues, or against\nencumbering all or any part of its real or personal property, to which its right\nor title then exists or may thereafter come into existence or against permitting\nor suffering any lien on revenues or property; to covenant with respect to its\nsale, leasing, or other d isposition of any redevelopment project or any part of\nthe project; and to covenant as to what other or additional debts or obligations\nmay be incurred by it;\n(d) To covenant as to the bonds to be issued and as to the issuance of the bonds in\nescrow or oth erwise, and as to the use and disposition of the proceeds of the\nbonds; to provide for the replacement of lost, destroyed, or mutilated bonds, to\ncovenant against extending the time for the payment of its bonds or interest on\nthe bonds; and to redeem the b onds, and to covenant for their redemption and\nto provide the terms and conditions of the bonds;\n(e) To covenant as to the amounts to be charged in the sale or lease of properties\nin a redevelopment project or projects, the amount to be raised from revenue\neach year or other period of time, and as to the use and disposition to be made\nof this amount; to create or to authorize the creation of special funds for\nmoneys held for redevelopment or other costs, debt service, reserves, or other\npurposes, and to cov enant as to the use and disposition of the money held in\nspecial funds;\n(f) To prescribe the procedure, if any, by which the terms of any contract with\nbondholders may be amended or abrogated, the amount of bonds the holders\nof which must consent thereto, and the manner in which consent may be\ngiven;\n(g) To covenant as to the use of any or all of its real or personal property; and to\ncovenant as to the maintenance of its real and personal property, its\nreplacement, the insurance to be carried, and the use and disposition of\ninsurance moneys;\n(h) To covenant as to the rights, liabil ities, powers, and duties arising upon the\nbreach of any covenant, condition, or obligation; and to covenant and\nprescribe as to events of default and terms and conditions upon which any or\nall of its bonds or obligations shall become or may be declared du e before\nmaturity, and as to the terms and conditions upon which a declaration and its\nconsequences may be waived;\n(i) To vest in a trustee or trustees or the holders of bonds or any proportion of\nthem the right to enforce the payment of the bonds or any c ovenant securing\nor relating to the bonds; to vest in a trustee or trustees the right, in the event of\na default by an agency, to take possession of any redevelopment project or part\nof the project, and to collect the rents and revenues arising or due the agency\nin connection with the project, and to dispose of the moneys in accordance\nwith the agreement of the agency with the trustee; to provide for the powers\nand duties of a trustee or trustees and to limit the liabilities of the trustees; and\nto provide the terms and conditions upon which the trustee or trustees or the\nholders of bonds or any proportion of them may enforce any covenant or\nrights securing or relating to the bonds; and\n(j) To exercise all or any part or combination of the powers granted; to  make\ncovenants other than and in addition to the covenants expressly authorized of\nlike or different character; to make the covenants and to do any and all the acts\nand things as may be necessary or convenient or desirable in order to secure\nits bonds, or , in the discretion of the agency, except as otherwise provided in\nKRS 99.330 to 99.510, as will tend to make the bonds more marketable\nnotwithstanding that the covenants, acts, or things may not be enumerated\nwithin this section.\n(8) The bonds, notes, and other obligations of an agency are declared to be issued for an\nessential public and governmental purpose, and together with interest and income\nfrom the bonds, notes, and other obligations shall be exempt from all taxes.\n(9) Notwithstanding any restricti ons on investments contained in any laws of this\nCommonwealth, the Commonwealth and all public officers, municipal corporations,\npolitical subdivisions, and public bodies; all banks, bankers, trust companies,\nsavings banks and institutions, building and lo an associations, savings and loan\nassociations, investment companies, and other persons carrying on a banking\nbusiness; all insurance companies, insurance associations and other persons\ncarrying on an insurance business; and all executors, administrators, guardians,\ntrustees, and other fiduciaries may legally invest any sinking funds, moneys, or\nother funds belonging to them or within their control in any bonds or other\nobligations issued by an agency, as defined by KRS 99.340, or issued by any\ncommunity or  other public body in the United States, when the bonds and other\nobligations are secured by a contract for financial assistance to be paid by the\nUnited States government or any of its agencies, and the bonds, and other\nobligations shall be authorized sec urity for all public deposits; it being one (1) of\nthe purposes of KRS 99.330 to 99.510 to authorize any persons, firms, corporations,\nassociations, political subdivisions, bodies, and officers, public or private, to use\nany funds owned or controlled by th em including (but not limited to) sinking,\ninsurance, investment, retirement, compensation, pension, and trust funds, any\nfunds held on deposit, for the purchase of any bonds or other obligations; provided,\nhowever, that nothing contained in KRS 99.330 to 99.510 shall be construed as\nrelieving any person, firm, or corporation from any duty of exercising reasonable\ncare in selecting securities.","path":["KRS Chapter 99"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=26543","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:01Z","sha256":"1359823d5d02221b85cf62d39ec9c00864bbe85affadadbb8c64ed746b7eba36","source_id":"us-ky","stale":false,"prev":"us-ky/krs-99.420","next":"us-ky/krs-99.440"},"notice":"GroundRules: Original legal text. Not legal advice."}