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164A.160 Reserve or replacement funds.
The corporation shall be authorized and empowered in connection with the issuance of its
bonds and notes for student loan purposes pursuant to this chapter to establish in respect
of such bonds and notes such reserve funds or replacement funds as may be required in
the sound discretion of the board of directors of the corporation to enable the corporation
to effectuate its proper public purposes. In the event any such reserve fund or replacement
fund created by the corporation in connection with any such bonds or notes issued
pursuant to a general bond resolution adopted prior to January 1, 2003, should, in
violation of any contract made by the corporation with any bondholder or noteholder, be
monetarily deficient in any respect as of any date of accounting so stipulated by the
corporation, the corporation shall immediately make formal request in writing to the
secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky
that sums adequate to restore such reserve fund or replacement fund to its contractually
required level and to pay any overdue principal and interest on any outstanding bonds and
notes of the corporation be included in the next succeeding executive budget, and that
such budget request with recommendation for approval by the General Assembly of an
appropriated legislative appropriation by the General Assembly to the corporation for the
use and benefit of such reserve fund or replacement fund be submitted to such session of
the General Assembly. In the event the next scheduled even-numbered-year regular
session of the General Assembly of Kentucky shall occur more than six (6) months after
any such request by the corporation, the corporation shall request that sums adequate to
restore such reserve fund or replacement fund to such contractually required level and to
pay any overdue principal and interest on any outstanding bonds and notes of the
corporation be made available from the Governor's contingency fund, and if such funds
are so made available the budget request hereinabove described in this section shall be
correspondingly reduced.
Effective: June 24, 2003
History: Amended 2003 Ky. Acts ch. 8, sec. 2, effective June 24, 2003. -- Amended
2001 Ky. Acts ch. 58, sec. 28, effective June 21, 2001. -- Created 1978 Ky. Acts
ch. 387, sec. 16, effective June 17, 1978.
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