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96A.120 Permissible types of financing.
For the purposes of acquiring or otherwise establishing one (1) or more transit
systems, or parts thereof, or for the purpose of adding to, extending, operating, or
improving one (1) or more mass transportation systems owned or to be acquired or
established, or for any combination of these purposes, an authority may, in addition
to other methods permitted by law, resort to financing according to any of the
following financing methods, or any combination thereof, to the extent not
inconsistent, one with another:
(1) Upon determination of its financing needs, an authority, by resolution of its
board, may request the public body responsible for its creation and
establishment, or any one (1) or more of the public bodies if there be more than
one (1):
(a) To appropriate and pay over to the authority all or any part of the amount
determined to be necessary; or
(b) To provide the amount determined to be necessary, or any part thereof,
from the proceeds of general obligation bonds of the public body or public
bodies, in which event the governing body or governing bodies of the
public body or public bodies may, in its or their discretion, take action as
may be required by the Constitution and applicable statutes of the
Commonwealth to submit to the voters thereof, at one (1) or more
elections to be held for that purpose, a proposal or proposals that the
issuance of general obligation bonds be approved and authorized, and if
so approved and authorized, the general obligation bonds may be issued
and the proceeds may be appropriated to the authority in the manner
requested;
(2) An authority may issue revenue bonds in its own name, payable solely from its
income and revenues, and not constituting or purporting to constitute an
indebtedness of the authority or of any other public body within the meaning of
debt-limiting provisions of the Constitution and applicable statutes of the
Commonwealth, in the manner and in accordance with the procedures set forth
in KRS 58.010 to 58.170, inclusive, and KRS 61.390, subject to any interest
rate limitations which may be applicable as provided by law;
(3) An authority may issue its mortgage bonds, as authorized by statute and may
make provision for obtaining revenues for the payment of the principal of and
interest thereon, and for the payment of costs of operating and maintenance,
and for the accumulation of reserves for renewals, replacements, extensions,
and improvements, and for debt service reserves, by leasing any mass
transportation system owned by the authority, or to be acquired or established
by the authority, or, if there be more than one (1) mass transportation system,
by leasing the same individually or in any combination, to one (1) or more
public bodies, whether or not the public bodies, or any of them, shall have
participated in the creation and establishment of the authority. Any lease shall
be a written instrument, executed by the authority as lessor, and by one (1) or
more public bodies, as a lessee or lessees, for a period of one (1) year, which
may be from the date of the mortgage bonds, or from the date of acquisition or
other establishment of the mass transit system or systems, with exclusive
options to the lessee or lessees to renew the same thereafter, from year to
(4)
year, upon the rentals and other terms and provisions as will provide to the
authority annual sums sufficient to provide for the purposes of this subsection;
General obligation bonds issued for the benefit of an authority, or revenue
bonds or mortgage bonds issued by an authority may, in the discretion of the
parties involved in the issuance, be refinanced, whether at maturity or upon
prior redemption in accordance with the terms, by the issuance of bonds,
according to any of the financing plans herein authorized.
Effective:July 15, 1996
History: Amended 1996 Ky. Acts ch. 274, sec. 63, effective July 15, 1996. -Amended 1980 Ky. Acts ch. 342, sec. 4, effective July 15, 1980. -- Created 1970
Ky. Acts ch. 243, sec. 13.
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