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56.063 Deposit and use of savings generated as result of refunding transaction.
(1)
(2)
As used in this section:
(a) "Asset/liability commission" means the Kentucky Asset/Liability Commission
established by KRS 56.861;
(b) "Commission" means the State Property and Buildings Commission
established by KRS 56.450;
(c) "General fund" has the same meaning as in KRS 48.010(15)(a);
(d) "Present value savings" means the difference expressed in terms of current
dollars between debt service on refunded bonds and debt service on refunding
bonds;
(e) "Refunded bonds" means outstanding bonds, notes, or other obligations that
were issued at any time, and that are refinanced through a refunding
transaction;
(f) "Refunding bonds" means new bonds, notes, or other obligations issued to
refund outstanding bonds, notes, or other obligations, including redemption
premiums and any interest accrued or to accrue to the date of redemption as
part of a refunding transaction;
(g) "Refunding transaction" means a transaction:
1.
Whereby outstanding bonds, notes, or other obligations are refunded by
the issuance of new refunding bonds, notes, or other obligations; and
2.
That is directly supported in whole or in part by appropriations from the
general fund or road fund;
(h) "Revenue shortfall" has the same meaning as in KRS 48.010(18);
(i) "Road fund" has the same meaning as in KRS 48.010(15)(g); and
(j) "State agency":
1.
Includes:
a.
Any state administrative body, agency, department, or division as
defined in KRS 42.005; and
b.
Any board, commission, institution, or division exercising any
function of the state;
with the authority to issue bonds, notes, or other obligations, and to enter
into refunding transactions with respect to those bonds, notes, or other
obligations; but
2.
Does not include universities that are part of the postsecondary
education system, as defined in KRS 164.001.
Notwithstanding any other provision of the Kentucky Revised Statutes, the savings
generated from reduced debt service payments during a fiscal biennium as a result
of any refunding transaction undertaken by the commission, the asset/liability
commission, or any state agency that:
(a) Results in a reduction in required debt service during the fiscal biennium; and
(b) Does not result in positive net present value savings;
shall be deposited in the budget reserve trust fund account established by KRS
48.705, and shall not be used as part of any budget-balancing measures adopted or
taken by the executive branch either in response to a revenue shortfall, or to address
expenditure reductions required by an enacted biennial budget for the executive
branch.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 42, sec. 1, effective July 12, 2012.
Legislative Research Commission Note (7/12/2012). Under the authority of KRS
7.136(1), the Reviser of Statutes has corrected a manifest clerical or typographical
error in subsection (1)(g)2. of this statute during codification. The meaning of the
text was not changed.
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