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220.587 Financing methods temporarily inadequate -- Procedure -- Contracts.
(1)
(2)
(3)
(4)
(5)
If the district finds as a fact that the methods of financing sewer facilities within
a construction subdistrict provided for in KRS 220.553 to 220.613 will be
inadequate, uneconomic, or unduly burdensome to the residents to be initially
served, the district may contract with one (1) or more persons to construct or
cause to be constructed a sewer system within the construction subdistrict or to
advance or loan money to the district for the construction of a sewer system
within the construction subdistrict. The sewer system constructed will be the
property of the construction subdistrict and will be a construction subdistrict
facility. When the district finds that one (1) or more financing methods for
construction subdistricts established by KRS 220.553 to 220.613, excluding
this section, have become feasible, the district may adopt such method or
methods to raise the money to pay for the construction of sewer facilities within
the construction subdistrict or to pay the loan.
The contract may be made prior to the making of an order establishing the
construction subdistrict. The contract may require that one (1) or more persons
agree to buy construction subdistrict bonds to be issued pursuant to KRS
220.577 in an amount specified, which shall be sufficient to finance the
construction of the sewer system. The maximum price and yield of the bonds
shall be stated in the contract. Such contract shall not prevent the district from
selling the bonds to a lower bidder.
All contracts made pursuant to this section shall be in writing and shall contain
a covenant that this section shall prevail over any contrary feature of the
contract.
The General Assembly declares that the public policy of the Commonwealth
will not be offended merely because a contract or loan made pursuant to this
section is privately negotiated or because it is made without competitive
bidding.
Bonds sold to one (1) or more contracting parties pursuant to subsection (2)
shall be endorsed to disclose the nature of the sale. Such bonds, no matter
who the holder or owner, shall never be eligible to have any payment made on
their account pursuant to KRS 220.593(6).
Effective:June 17, 1978
History: Amended 1978 Ky. Acts ch. 384, sec. 81, effective June 17, 1978. -Created 1966 Ky. Acts ch. 92, sec. 18.
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