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42.200 Water project interest rate buy down fund -- Funding sources,
purposes, uses, and administration.
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The water project interest rate buy down fund is hereby created as a special
fund in the State Treasury. The fund may receive state appropriations, gifts,
grants, and federal funds and shall include earnings from investments of
moneys in the fund. Any fund balance at the close of the fiscal year shall not
lapse but shall be carried forward to the next fiscal year, and moneys in this
fund shall be continuously appropriated only for the purposes specified in this
section.
The fund shall be used to provide financial assistance to government agencies
for the construction of publicly owned water supply projects located in rural
areas of the Commonwealth. In order to qualify for the financial assistance, the
governmental agency shall obtain a loan from a bank or combined bank and
trust company organized under the laws of this Commonwealth and at an
interest rate no greater than two (2) percentage points higher than the current
prime rate. The financial assistance provided shall consist of an annual grant to
the governmental agency to be made over the life of the loan obtained by the
governmental agency for the construction of the publicly owned water supply
project. The amount of the annual grant shall be calculated over the life of the
loan to provide to the governmental agency each year the portion of the
interest on the loan calculated at a four percent (4%) interest rate. The
governmental agency shall be responsible for the payment of the interest on
the loan in excess of the four percent (4%) interest rate and for the payment of
the principal on the loan.
The Finance and Administration Cabinet shall administer the fund and may
promulgate administrative regulations as necessary to implement the
provisions of this section. The Department for Local Government shall advise
government agencies of the fund and how to apply for moneys from the fund.
The provisions of this section shall be known and may be cited as the
Kentucky Rural Water Act.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 117, sec. 20, effective July 15, 2010. -Amended 2007 Ky. Acts ch. 47, sec. 14, effective June 26, 2007. -- Amended
1998 Ky. Acts ch. 69, sec. 6, effective July 15, 1998. -- Created 1996 Ky. Acts
ch. 322, sec. 1, effective July 15, 1996.
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