.200 Water project interest rate buy down fund -- Funding sources, purposes, uses, and administration.
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42.200 Water project interest rate buy down fund -- Funding sources, purposes,
uses, and administration.
(1)
The "Water Project Interest Rate Buy Down Fund" is hereby created as a special
fund in the State Treasury. The fund may receive state appropriations, gifts, grants,
and federal funds and shall include earnings from investments of moneys in the
fund. Any fund balance at the close of the fiscal year shall not lapse but shall be
carried forward to the next fiscal year, and moneys in this fund shall be
continuously appropriated only for the purposes specified in this section.
(2)
The fund shall be used to provide financial assistance to government agencies for
the construction of publicly-owned water supply projects located in rural areas of
the Commonwealth. In order to qualify for the financial assistance, the
governmental agency shall obtain a loan from a bank or combined bank and trust
company organized under the laws of this Commonwealth and at an interest rate no
greater than two (2) percentage points higher than the current prime rate. The
financial assistance provided shall consist of an annual grant to the governmental
agency to be made over the life of the loan obtained by the governmental agency for
the construction of the publicly-owned water supply project. The amount of the
annual grant shall be calculated over the life of the loan to provide to the
governmental agency each year the portion of the interest on the loan calculated at a
four percent (4%) interest rate. The governmental agency shall be responsible for
the payment of the interest on the loan in excess of the four percent (4%) interest
rate and for the payment of the principal on the loan.
(3)
The Finance and Administration Cabinet shall administer the fund and may
promulgate administrative regulations as necessary to implement the provisions of
this section. The Department for Local Government shall advise government
agencies of the fund and how to apply for moneys from the fund.
(4)
The provisions of this section shall be known and may be cited as the Kentucky
Rural Water Act.
Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 69, sec. 6, effective July 15, 1998. -- Created
1996 Ky. Acts ch. 322, sec. 1, effective July 15, 1996.
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