2014 Kentucky Revised Statutes CHAPTER 177 - STATE AND FEDERAL HIGHWAYS -- LIMITED ACCESS FACILITIES -- TURNPIKES -- ROAD BONDS -- BILLBOARDS -- RECYCLERS 177.595 Full faith and credit of state pledged -- Funds derived from certain taxes to be set aside in amount sufficient to pay principal and interest -- Exception.
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177.595 Full faith and credit of state pledged -- Funds derived from certain
taxes to be set aside in amount sufficient to pay principal and interest -Exception.
The bonds herein provided for shall be direct obligations of the Commonwealth of
Kentucky, and the full faith and credit of the Commonwealth hereby is pledged for
the payment of said bonds and the interest thereon. In order to provide for the
payment of the principal of all of said bonds at their maturity and the interest thereon
annually as same shall accrue, there shall be levied and collected in each of the
thirty (30) years from January 1, 1957, to January 1, 1987, taxes for the benefit of
the state road fund in the form of license, excise taxes and fees relating to
registration, operation and use of vehicles on public highways and excise taxes, use
and license taxes relating to gasoline and other motor fuels used upon the public
highways in Kentucky at rates not less than the rates now imposed by law or so
adjusted as to produce for the road fund not less than the amount now derived from
all of such taxes. All funds derived from such taxes hereby are appropriated to the
extent necessary for the payment of the principal and interest on said bonds. From
the funds derived from said taxes in each year, beginning January 1, 1957, there
shall be set aside and held inviolable for that purpose, a fund sufficient to pay the
principal and interest on said bonds in each year as and when due until all of said
bonds and the interest thereon shall have been paid in full. In each year, after setting
aside the funds hereinabove provided, the remainder of the funds derived from such
taxes may be expended and used for the cost of administration, statutory refunds
and adjustment, payment of highway obligations, costs of construction,
reconstruction, rights-of-way, maintenance and repair of public highways, tunnels
and bridges and the expense of enforcing state traffic and motor vehicle laws,
provided that all the funds collected under KRS Chapter 138 and required by KRS
138.220 and 138.660(2) to be set aside by the Department of Highways for the
construction, reconstruction and maintenance of rural and secondary roads shall be
first set aside and used for such purposes.
Effective:July 15, 1986
History: Amended 1986 Ky. Acts ch. 331, sec. 30, effective July 15, 1986. -Created 1956 (2nd Extra. Sess.) Ky. Acts ch.3, sec. 4, effective June 26, 1956.
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