2014 Kentucky Revised Statutes CHAPTER 160 - SCHOOL DISTRICTS 160.160 Boards of education -- Powers and procedures -- Approval of Department of Education required for mortgages, leases -- Rental payments under lease.
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160.160 Boards of education -- Powers and procedures -- Approval of
Department of Education required for mortgages, leases -- Rental
payments under lease.
(1)
(2)
(3)
(4)
Each school district shall be under the management and control of a board of
education consisting of five (5) members, except in counties containing a city of
the first class wherein a merger pursuant to KRS 160.041 shall have been
accomplished which shall have seven (7) members elected from the divisions
and in the manner prescribed by KRS 160.210(5), to be known as the "Board
of Education of ...., Kentucky." Each board of education shall be a body politic
and corporate with perpetual succession. It may sue and be sued; make
contracts; expend funds necessary for liability insurance premiums and for the
defense of any civil action brought against an individual board member in his
official or individual capacity, or both, on account of an act made in the scope
and course of his performance of legal duties as a board member; purchase,
receive, hold, and sell property; issue its bonds to build and construct
improvements; and do all things necessary to accomplish the purposes for
which it is created. Each board of education shall elect a chairman and vice
chairman from its membership in a manner and for a term prescribed by the
board not to exceed two (2) years.
No board of education shall participate in any financing of school buildings,
school improvements, appurtenances thereto, or furnishing and equipment,
including education technology equipment without:
(a) First establishing the cost of the project in advance of financing, based on
the receipt of advertised, public, and competitive bids for such project, in
accordance with KRS Chapter 424; and
(b) Establishing the cost of financing in advance of the sale of any bonds,
certificates of participation in any leases, or other evidences of financial
commitments issued by or on behalf of such board. Any bonds, leases,
participations, or other financial arrangements shall not involve a final
commitment of the board until the purchaser or lender involved shall have
been determined by public advertising in accordance with KRS Chapter
424.
No board of education shall make a mortgage, lien, or other encumbrance
upon any school building owned by the board, or transfer title to any such
school building as part of any financing arrangement, without the specific
approval of the Department of Education, and without the transaction being
entered into pursuant to a detailed plan or procedure specifically authorized by
Kentucky statute.
Without the approval of the Department of Education, no board may lease, as
lessee, a building or public facility that has been or is to be financed at the
request of the board or on its behalf through the issuance of bonds by another
public body or by a nonprofit corporation serving as an agency and
instrumentality of the board, or by a leasing corporation. Any lease,
participation, or other financial arrangement shall not involve a final
commitment of the board unless and until the purchaser or lender involved in
same shall have been determined by public advertising in accordance with
KRS Chapter 424. No transaction shall be entered into by the board except
(5)
(6)
upon the basis of public advertising and competitive bidding in accordance with
KRS Chapter 424.
Rental payments due by a board under a lease approved by the Department of
Education in accordance with subsection (4) of this section shall be due and
payable not less than ten (10) days prior to the interest due date for the bonds,
notes, or other debt obligations issued to finance the building or public facility.
If a board fails to make a rental payment when due under a lease, upon
notification to the Department of Education by the paying agent, bond registrar,
or trustee for the bonds not less than three (3) days prior to the interest due
date, the Department of Education shall withhold or intercept any funds then
due the board to the extent of the amount of the required payment on the
bonds and remit the amount to the paying agent, bond registrar, or trustee as
appropriate. Thereafter, the Department of Education shall resolve the matter
with the board and adjust remittances to the board to the extent of the amount
paid by the Department of Education on the board's behalf.
Bonds, notes or leases negotiated to provide education technology shall not be
sold for longer than seven (7) years or the useful life of the equipment as
established by the state technology master plan, whichever is less.
Effective:July 15, 1994
History: Amended 1994 Ky. Acts ch. 288, sec. 1, effective July 15, 1994.
Amended 1992 Ky. Acts ch. 195, sec. 7, effective April 3, 1992. -- Amended
1990 Ky. Acts ch. 476, Pt. II, sec. 88, effective July 13, 1990. -- Amended 1988
Ky. Acts ch. 421, sec. 1, effective July 15, 1988. -- Amended 1982 Ky. Acts
ch. 59, sec. 1, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 11, sec. 1,
effective February 24, 1978. -- Amended 1974 Ky. Acts ch. 224, sec. 2. -Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 4399-17, 4399-18.
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