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151.730 Revenue bonds.
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The authority is hereby authorized to provide, at one (1) time or from time to
time, for the issuance of its revenue bonds for the purpose of paying all or any
part of the cost of any one (1) or more projects undertaken pursuant to KRS
151.720. The principal of and the interest on such bonds shall in each instance
be payable solely from a special fund provided for the payment, with revenues
derived from water use fees collected from all facilities using water from the
Kentucky River basin, except those facilities using water primarily for
agricultural purposes, pledged to be set aside and deposited in such special
fund. The bonds of any issue may be in one (1) or more series and any one (1)
or more such series may enjoy equal or subordinate status with respect to the
pledge of funds from which they are payable, shall be dated, shall bear
interest, shall mature at such time or times not exceeding the thirtieth
anniversary of their respective dates, all as may be provided by the authority,
and may be made redeemable before maturity, at the option of the authority, at
such price or prices and under such terms and conditions as may be fixed by
the authority prior to the issuance of the bonds. The authority shall determine
the form of bonds including any interest coupons to be attached thereto, and
shall fix the denomination or denominations of the bonds and the place or
places for payment of principal and interest, which may be at any bank or trust
company within or without the Commonwealth. The bonds shall be signed by
the facsimile signature of the chairman of the authority, and the seal of the
authority or a facsimile thereof shall be affixed thereto and attested by the
manual signature of the treasurer of the authority, and any coupons attached
thereto shall bear the facsimile signature of the chairman of the authority. In
case any officer whose signature or a facsimile of whose signature shall
appear on any bonds or coupons shall cease to be such officer before the
delivery of such bonds, such signature or such facsimile shall nevertheless be
valid and sufficient for all purposes the same as if he had remained in office
until such delivery. All bonds issued under the provisions of this section shall
have and are hereby declared to have all qualities and incidents of negotiable
instruments under the uniform commercial code of the Commonwealth. The
bonds may be issued in coupon or in registered form, or both, as the authority
may determine, and provision may be made for the registration of any coupon
bonds as to principal alone and also as to both principal and interest, and for
the reconversion into coupon bonds of any bonds registered as to both
principal and interest. The authority may sell such bonds at public sale, and for
such price as it may determine will best effect the purposes of KRS 151.720.
The proceeds of the bonds of each issue shall be used solely for the payment
of the cost of the project or projects for which such bonds shall have been
issued, and shall be disbursed in such a manner and under such restrictions, if
any, as the authority may provide in the proceedings authorizing the issuance
of such bonds or in the trust indenture securing the same. If the proceeds of
the bonds of any issue, by error of estimates or otherwise, shall be less than
such cost, additional bonds may in like manner be issued to provide the
amount of such deficit, and, unless otherwise provided in the proceedings
authorizing the issuance of such bonds or in the trust indenture securing the
same, shall be deemed to be of the same issue and shall be entitled to
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payment from the same fund without preference or priority of the bonds first
issued. If the proceeds of the bonds of any issue shall exceed such cost, the
surplus shall be deposited to the credit of the sinking fund or funds for such
bonds or any account or accounts therein as the authority shall have provided
in the proceedings or trust indenture authorizing and securing such bonds.
Prior to the preparation of definitive bonds, the authority may, under like
restrictions, issue interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds when such bonds shall have been executed
and are available for delivery. The authority may also provide for the
replacement of any bonds which shall become mutilated or shall be destroyed
or lost.
The authority may issue revenue bond anticipation notes.
Any holder of bonds issued under the provisions of this section or any of the
coupons appertaining thereto, and the trustee under any trust indenture, except
to the extent of the rights given in this section, may be restricted by such trust
indenture or proceedings, may, either at law or in equity, by suit, action,
mandamus, or other proceedings, protect and enforce any and all rights under
the laws of the Commonwealth or granted under this section or under such
trust indenture or the proceedings authorizing the issuance of such bonds, and
may enforce and compel the performance of all duties required by this section
or by such trust indenture or proceedings to be performed by the authority or
by any officer or employee thereof.
Revenue bonds issued under the provisions of this section shall not be a debt,
liability, or obligation of the Commonwealth or any political subdivision thereof
and shall not be a pledge of the faith and credit of the Commonwealth or any
political subdivision thereof.
Revenue bonds issued by the authority shall be subject to the jurisdiction and
approval of the State Property and Buildings Commission and the Capital
Projects and Bond Oversight Committee and shall be subject to review by the
Office of Financial Management established in KRS 42.0201.
The authority shall not be required to pay any taxes and assessments to the
Commonwealth or any county, municipality, or other governmental subdivision
of the Commonwealth upon any of its property or upon its obligations or other
evidences of indebtedness pursuant to the provisions of this section, or upon
any moneys, funds, revenues, or other income held or received by the authority
and the bonds or notes of the authority and the income therefrom shall at all
times be exempt from taxation, except for death and gift taxes and taxes of
transfers.
Contractual expenses to construct, reconstruct, provide for the major
maintenance, or repair the Kentucky River locks and dams, or to maintain the
channel, or to acquire real or personal property pertaining thereto, or to
construct, reconstruct, maintain, or repair such property, shall be paid from the
proceeds of the revenue bonds. Expenses for administrative services and
necessary travel expenses and per diem compensation of authority members,
shall not be paid from the proceeds of the revenue bonds. Nor shall the
cabinet's cost of operating the locks be paid from the proceeds of the revenue
bonds.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 567, effective June 20, 2005. -Amended 2000 Ky. Acts ch. 46, sec. 24, effective July 14, 2000. -- Amended
1996 Ky. Acts ch. 229, sec. 3, effective July 15, 1996. -- Created 1986 Ky. Acts
ch. 383, sec. 4, effective July 15, 1986.
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