2009 Kentucky Revised Statutes CHAPTER 107 MUNICIPAL IMPROVEMENTS -- ALTERNATE METHODS 107.110 Proceeds from sale of bonds to be deposited -- Security -- Disbursement.
107.110 Proceeds from sale of bonds to be deposited -- Security -- Disbursement.
When the bonds are delivered and the proceeds are received by the city, the same shall be <br>deposited in a bank or trust company, or combined bank and trust company, together with <br>the proceeds of all payments received from benefited property owners on a lump-sum <br>basis, and to the extent such deposit may exceed insurance provided by Federal Deposit <br>Insurance Corporation, (if the depository be a member thereof, otherwise the full <br>amount), the same shall be secured by a valid pledge of bonds or notes of the United <br>States government, or fully guaranteed thereby, having at all times a market value equal <br>to the undisbursed balance of such deposit; or shall be secured in such other manner as <br>the governing body may prescribe or approve. Costs of the project which may then be <br>earned and payable, may be paid forthwith. There shall be set aside into the sinking fund, <br>hereinafter created, a sum from bond proceeds equal to all interest which will accrue on <br>said bonds until the date when the first improvement assessment levied in connection <br>therewith will become due and payable. The remainder may be disbursed from time to <br>time in payment of costs of the project, as herein defined, except that payments on <br>account of the construction contracts shall not exceed ninety percent (90%) of the amount <br>shown by a written certificate of the engineer to have been earned for materials furnished <br>and/or labor performed by any contractor, the retained ten percent (10%) to be disbursed <br>only upon final acceptance of the finished work of such contractor. If, after completion, <br>acceptance and payment of the work of all contractors, and the payment of all costs of the <br>improvement project, as herein defined, there shall remain an unexpended balance of <br>bond proceeds, such balance shall be transferred to the sinking fund created and <br>maintained in connection with the project, as provided in this chapter. If, after <br>completion, there remains any unexpended balance of lump-sum payments, it shall be <br>returned, pro rata, to the payors.
History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 13, sec. 17. -- Created 1956 Ky.
Acts ch. 239, sec. 11.
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