2014 Kentucky Revised Statutes CHAPTER 177 - STATE AND FEDERAL HIGHWAYS -- LIMITED ACCESS FACILITIES -- TURNPIKES -- ROAD BONDS -- BILLBOARDS -- RECYCLERS 177.730 Bonds for park purposes and bonds for highways, bridges and tunnels to have separate sources of payment of principal and interest -- Provisions for levying taxes as required by the Constitution.
Download as PDF
177.730 Bonds for park purposes and bonds for highways, bridges and
tunnels to have separate sources of payment of principal and interest -Provisions for levying taxes as required by the Constitution.
All of said 1960 bonds shall, as aforesaid, be direct general obligation bonds of the
Commonwealth and shall be issued with an irrevocable pledge of the full faith, credit,
resources and unlimited taxing power of the Commonwealth, but in accordance with
the mandatory requirement of Section 50 of the Constitution of the Commonwealth
there shall be levied and collected, annually, taxes sufficient to pay the interest
stipulated, and to discharge the debt within thirty (30) years, as follows:
(1) In order to provide for the payment of the stipulated interest, and to discharge
within thirty (30) years, the indebtedness to be evidenced by the ten million
dollars ($10,000,000) of 1960 bonds to be issued for acquisition, development
and improvement of state parks and for development and improvement of
existing state parks, there shall be levied and collected annually so long as any
of such bonds are outstanding and unpaid, taxes of the Commonwealth upon
all real property, tangible personal property, and intangible personal property
from time to time subject to taxation by the Commonwealth, at rates not less
than the rates now imposed by law or rates so adjusted as not in any event to
jeopardize the prompt payment of principal of and interest on said bonds when
due and payable. All proceeds of such taxes, to the extent necessary for
payment of the principal of and interest on the ten million dollars ($10,000,000)
of 1960 bonds designated for state park purposes, as and when such principal
and interest, respectively, shall become due and payable, are hereby
appropriated for that purpose; and such amount thereof shall in each year be
set aside in the State Treasury in the "Park Bond Sinking Fund," hereby
created, and shall be held therein and disbursed and used upon order of the
State Treasurer solely for the purpose of paying the principal of and interest on
said bonds when and where due and payable, until all of said bonds, or such
lesser amount thereof as may have been issued within thirty (30) years from
date of first issue shall have been paid in full. In each year, after setting aside
such prescribed amount into the park bond sinking fund, the remainder of the
proceeds of said identified taxes shall be available for any proper general fund
purposes of the Commonwealth without restriction. Moneys from time to time
set aside and deposited in said park bond sinking fund, as hereinabove
provided, may be invested by the State Investment Commission from time to
time in United States government securities which mature, or are subject to
redemption at the option of the holder, at or before the various times when
cash funds will be required for payment of the maturing principal of and interest
on said identified bonds; and income received from such securities shall be
retained in the said park bond sinking fund and may be taken into
consideration in the next ensuing annual determination of the amount of such
tax proceeds required to be set aside into the said fund as hereinabove
provided.
(2) In order to provide for the payment of the stipulated interest, and to discharge
within thirty (30) years the indebtedness to be evidenced by the ninety million
dollars ($90,000,000) of 1960 bonds to be issued for the construction of
highways, bridges and tunnels there shall be levied and collected, annually,
taxes of the Commonwealth 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 fees and taxes
relating to gasoline and other motor fuels consumed upon the public highways
in the Commonwealth, at rates not less than the rates now imposed by law or
at rates so adjusted as to produce for the road fund not less than the amount
now derived from all such sources. Subject to certain prior vested rights
hereinafter enumerated, all proceeds of such taxes, to the extent necessary for
payment of the principal of and interest on the ninety million dollars
($90,000,000) of 1960 bonds designated for the highways, bridges and
tunnels, as and when such principal and interest, respectively, become due
and payable, are hereby appropriated for that purpose; and such amount
thereof shall in each year be set aside in the State Treasury into the "Highway
Bond Sinking Fund of 1960," hereby created within the state road fund, and
shall be held therein and disbursed and used upon order of the State Treasurer
solely for the purpose of paying the principal of and interest on said identified
bonds when and where due, until all of said bonds, or such lesser amount
thereof as may have been issued within such period of thirty (30) years, shall
have been paid in full; provided, however, moneys in said fund may be
invested pending disbursement as in the case of moneys in the park bond
sinking fund as herein above provided. In setting aside moneys from the
proceeds of such taxes and fees into the highway bond sinking fund of 1960,
due regard shall be had for any and all vested rights in and to such proceeds
existing in favor of (a) the holders of general obligation bonds of the
Commonwealth heretofore or hereafter issued and outstanding pursuant to
KRS 177.580 to 177.630, as authorized and approved by the voters at the
general election on November 6, 1956, (b) the holders of revenue bonds
issued for constructing the turnpike between Louisville and Elizabethtown,
Kentucky, as provided in this chapter and in a certain trust agreement made in
connection with the issuance of said bonds, including recognition of the
commitment of the Commonwealth to pay the cost of maintaining, repairing
and operating said turnpike, (c) the holders of revenue bonds issued for the
construction of certain bridges as set forth in KRS Chapter 180 and in certain
trust indentures securing such bridge revenue bonds, including the
commitment of the Commonwealth to pay the cost of operating and
maintaining such bridges, (d) the holders of valid contracts of the Department
of Highways which are in existence on the respective dates any bonds are
issued pursuant to KRS 177.700 to 177.820, and (e) the right of the several
counties of the Commonwealth to receive distribution of certain revenues for
the respective county road funds as provided in KRS 47.020. The right is
reserved to the Commonwealth to provide in the future for the construction of
additional turnpikes and bridges and financing the same by issuing revenue
bonds; and in all such instances the Commonwealth shall have the right to
create for the security and source of payment of such revenue bonds a first
and prior pledge of and lien upon any and all revenues identified as being
generated by such respective projects. In each year, after setting aside into the
1960 highway bond sinking fund the amount herein prescribed, and after due
recognition of the rights enumerated above, the remainder of the proceeds
derived from such taxes and fees may be expended and used for any lawful
and proper purposes of the state road fund as otherwise permitted by the
Constitution and laws of the Commonwealth.
Effective:June 16, 1960
History: Created 1960 Ky. Acts ch. 106, sec. 5, effective June 16, 1960.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.