{"data":{"id":"us-ky/krs-99.670","jurisdiction":"us-ky","citation":"KRS 99.670","heading":"Bond issue -- Agency powers.","body":"(1) An agency shall have power to issue bonds from time to time at its discretion for\nany of its corporate purposes under KRS 99.610 to 99.680. An agency shall also\nhave power to issue refunding bonds for the purpose of paying or retiring bonds\npreviously issu ed by it. An agency may issue bonds on which the principal and\ninterest are payable:\n(a) Exclusively from the income and revenues, including the increment of tax\nrevenues as allowed by law, of the project or projects financed from the\nproceeds of such bonds; or\n(b) Exclusively from such income and revenues together with grants and\ncontributions from the federal, state, city, or urban -county government, or\nother sources. Any such bonds may be additionally secured by a mortgage,\ndeed of trust, or other lien o r encumbrance on the property, including pledges\nof tax increments as allowed by law in the project or projects financed from\nthe proceeds of such bonds.\n(2) Neither the members of the board of commissioners of an agency nor any person\nexecuting the bonds shall be liable personally on the bonds by reason of the\nissuance thereof. The bonds and other obligations of an agency shall so state on\ntheir face that such bonds and obligations issued under this section shall not be a\ndebt of the city, the county, the state, or any political subdivision thereof within the\nmeaning of any constitutional or statutory debt limitation or restriction and neither\nthe city, the county, the state, nor any political subdivision thereof shall be liable\nthereon, nor, in any event, shall such bonds or obligations be payable out of any\nfunds or properties other than those of said agency, except as provided by contract.\n(3) Bonds of an agency shall be authorized by resolution of its board of commissioners.\nSuch bonds may be issued in o ne (1) or more series, each of which may be\nseparately secured, and shall bear such date or dates, mature at such time or times,\nbear interest at such rate or rates, be in such denomination or denominations, be in\nsuch form either coupon or registered, car ry such conversion or registration\nprivileges, have such rank or priority, be executed in such manner, be payable in\nsuch medium of payment, at such place or places, and be subject to such terms of\nredemption, with or without premium, as such resolution, i ts trust indenture or\nmortgage may provide.\n(4) The bonds may be sold at less than par, and shall be sold at public sale held after\nnotice has been given by publication pursuant to KRS Chapter 424, except as\nfollows:\n(a) Bonds may be sold at private sale w ithout advertisement to the federal, state\nor urban-county governments, or to an agency of any such governments;\n(b) Payment for any portion of a project area may be made in bonds, provided,\nhowever, that:\n1. Any such transaction shall be approved by the p rice advisory council\nbefore its consummation;\n2. Such exchange is valid and legal pursuant to regulations of the Internal\nRevenue Service.\n(5) The bonds may be sold with provision that they bear no interest, or only nominal\ninterest, for a period of years , after which they may bear greater interest; and\nprovision may be made for the capitalization of interest for periods not in excess of\nfive (5) years. More than one (1) project may be established within the same project\narea, and each such project may be financed with a different issue or bonds with\ndiffering security. Each of said bond issues may be designed to meet standards\nrequired under federal statutes or regulations pertaining to the issuance of tax -\nexempt bonds; provided, however, that nothing here in shall be deemed to prohibit\nthe issuance of any series of bonds, the interest on which may not be exempt from\nfederal income tax.\n(6) In case any of the members or officers of the agency whose signatures appear on\nany bonds, coupons, notes, or other obl igations shall cease to be such members or\nofficers before the delivery of such bonds, coupons, notes, or other obligations, such\nsignatures shall, nevertheless, be valid and sufficient for all purposes, the same as if\nthey had remained in office until suc h delivery. Any provision of any law to the\ncontrary notwithstanding, any bonds, coupons, notes, or other obligations issued\npursuant to KRS 99.610 to 99.680 shall be fully negotiable except as limited by\ntheir terms.\n(7) In any suit, action, or proceedings involving the validity or enforceability of any\nbonds of an agency or the security therefor, any such bonds reciting in substance\nthat they have been issued by the agency to aid in financing a project shall be\nconclusively deemed to have been issued for a project and said project shall be\nconclusively deemed to have been planned, approved, located, and carried out in\naccordance with the purposes and provisions of KRS 99.610 to 99.680.\n(8) 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 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 there after come into existence or against permitting\nor suffering any lien on such revenues or property; to covenant with respect to\nits sale, leasing, or other disposition of any project or any part thereof; and to\ncovenant as to what other, or additional debt s or obligations may be incurred\nby it;\n(d) To covenant as to the bonds to be issued and as to the issuance of such bonds\nin escrow or otherwise, and as to the use and disposition of the proceeds\nthereof; to provide for the replacement of lost, destroyed, or mutilated bonds,\nto covenant against extending the time for the payment of its bonds or interest\nthereon; and to redeem the bonds, and to covenant for their redemption and to\nprovide the terms and conditions thereof;\n(e) To covenant as to the amounts to  be charged in the sale or lease of properties\nin a project or projects, the amount to be raised from revenue each year or\nother period of time and as to the use and disposition to be made thereof; to\ncreate or to authorize the creation of special funds fo r moneys held for\ndevelopment or other costs, debt service, reserves, or other purposes, and to\ncovenant as to the use and disposition of the money held in such 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 such 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 mainte nance of its real and personal property, the\nreplacement thereof, the insurance to be carried thereon, and the use and\ndisposition of insurance moneys;\n(h) To covenant as to the rights, liabilities, powers, and duties arising upon the\nbreach of any covenan t, 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 due before\nmaturity, and as to the terms and conditions upon which  such declaration and\nits consequences 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 trustees the right, in the\nevent of a default by said agency, to t ake possession of any project or part\nthereof, and to collect the rents and revenues arising therefrom, or due the\nagency in connection therewith, and to dispose of such moneys in accordance\nwith the agreement of the agency with said trustee; to provide fo r the powers\nand duties of a trustee or trustees and to limit the liabilities thereof; and to\nprovide 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;\n(j) To exercise all or any part or combination of the powers herein granted; to\nmake covenants other than and in addition to the covenants herein expressly\nauthorized of like or different character; to make such covenants and to do any\nand all such acts and things as may be necessary or convenient or desirable in\norder to secure its bonds, or, in the discretion of said agency, except as\notherwise provided in KRS 99.610 to 99.680, as will tend to make the bonds\nmore marketable notwithstanding that such covenants, acts, or things may not\nbe enumerated herein.\n(9) 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 thereon and\nincome therefrom shall be exempt from all taxes.","path":["KRS Chapter 99"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=26577","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:02Z","sha256":"3e670feae3861f90cd2b5b0ddebe3f195d500b55215a95b8a9d382d239101fe7","source_id":"us-ky","stale":false,"prev":"us-ky/krs-99.665","next":"us-ky/krs-99.675"},"notice":"GroundRules: Original legal text. Not legal advice."}