2013 Kentucky Revised Statutes CHAPTER 67A - URBAN-COUNTY GOVERNMENT 67A.770 Deposit of prepayments and bond sale proceeds -- Security -- Disbursements.
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67A.770 Deposit of prepayments and bond sale proceeds -- Security -Disbursements.
As prepayments are received and when the bonds are delivered and the proceeds
are received by the urban-county government, the same shall be deposited in an
interest-bearing account in a bank or trust company, or combined bank and trust
company, and to the extent such deposit may exceed insurance provided by federal
deposit insurance corporation (if the depository be a member thereof, otherwise the
full amount), the same shall be secured by a valid pledge of bonds or notes of the
United States government, or fully guaranteed thereby, having at all times a market
value equal to the undisbursed balance of such deposit; or shall be secured in such
other manner as the governing body may prescribe or approve. Costs of the project
which may then be earned and payable, may be paid forthwith. There shall be set
aside into the sinking fund, hereinafter created, a sum from bond proceeds equal to
all interest which will accrue on said bonds until the date when the first improvement
assessment levied in connection therewith will become due and payable. The
remainder may be disbursed from time to time in payment of costs of the project, as
herein defined, except that payments on account of the construction contracts shall
not exceed ninety percent (90%) of the amount shown by a written certificate of the
engineer to have been earned for materials furnished and/or labor performed by any
contractor, the retained ten percent (10%) to be disbursed only upon final
acceptance of the finished work of such contractor. If, after completion, acceptance
and payment of the work of all contractors, and the payment of all costs of the
improvement project, as herein defined, there shall remain an unexpended balance
of bond proceeds, such balance shall be transferred to the sinking fund created and
maintained in connection with the project, as provided in KRS 67A.800. The
advanced installment and the one-half of one percent (0.5%) collected pursuant to
KRS 67A.755 shall be part of the sinking fund.
Effective:June 21, 1974
History: Created 1974 Ky. Acts ch. 394, sec. 13, effective June 21, 1974.
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