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2009 Kentucky Revised Statutes
CHAPTER 224A KENTUCKY INFRASTRUCTURE AUTHORITY
224A.120 Authority may issue revenue bonds.
Download pdffunds and moneys to the authority to enable it to enter into assistance agreements
with governmental agencies, acquire and lease infrastructure projects, to
governmental agencies, purchase or refinance obligations of governmental agencies
issued for infrastructure projects and make loans or grants for infrastructure
projects, and to enable the authority generally to carry out and effectuate its proper
corporate purposes. In anticipation of the issuance of the revenue bonds, the
authority may provide for the issuance at one (1) time, or from time to time, of
revenue bond anticipation notes pursuant to the general laws of the state. The
principal of and the interest on the revenue bonds or notes shall be payable solely
from authority revenues. Any such notes may be made payable from the proceeds of
bonds or renewal notes, or in the event bond or renewal note proceeds are not
available, or should the authority deem it financially practicable to pay the notes
directly from authority revenues, the notes may be paid from any available authority
revenues. Prior to the issuance of the bonds or notes, the authority shall submit any
proposed issue to the Capital Projects and Bond Oversight Committee for its review
and determination in accordance with the provisions of KRS 45.810. (2) The revenue bonds or notes of the authority shall be dated and may be redeemable prior to maturity at the option of the authority at prices and under terms and
conditions determined by the authority. Any bonds or notes shall bear interest at the
rate or rates, shall be payable annually or at shorter intervals, and may bear
conversion privileges determined by the authority. Notes shall mature at the time or
times not exceeding five (5) years from their date or dates, and revenue bonds shall
mature at the time or times not exceeding forty (40) years from their date or dates as
may be determined by the authority. The authority shall determine the form and
manner of execution of the bonds or notes, and shall fix the denomination or
denominations and the place or places of payment of principal and interest, which
may be any bank or trust company within or without the state. In case any officer of
the authority whose signature or facsimile of whose signature shall appear on any
revenue bonds or notes, shall cease to be such officer before the delivery thereof,
the signature or the facsimile shall be valid and sufficient for all purposes, the same
as if the officer had remained in office until the delivery. At the time of issuance of
variable rate revenue bonds, the authority may designate individuals or institutions
which, in the sole judgment of the authority, have financial market expertise to
serve as agent for the authority for establishing and changing from time to time,
while the variable rate revenue bonds remain outstanding, the rate of interest to be
borne by and the price to be paid for the revenue bonds. The rate-setting procedures
and authority of each agent shall be set forth in writing, and may include a formula
or an index or indices based upon market factors, and shall be established by the
authority at the time of issuance of the revenue bonds. At the time of the issuance of
the revenue bonds, the authority shall establish the maximum interest rate to be
borne by the revenue bonds. The authority shall retain the right to remove or replace
any agent at any time and for any reason. The authority may provide that said bonds Page 2 of 3 or notes may be executed only with the facsimile signatures of its officers, but said
bonds or notes shall be executed with the manual signature of a bank or trust
company designated by the authority as registrar and paying agent. (3) All revenue bonds or notes issued under the provisions of this chapter shall have and are hereby declared to possess all of the qualities and incidents of negotiable
instruments under the laws of the state. The authority may sell the revenue bonds or
notes in the manner, either at public or private negotiated sale, and for the price, as
it may determine will best effect the purpose of this chapter. If revenue bonds are
sold at public, competitive sale, the revenue bonds shall be sold after newspaper
advertising conforming to the requirements of KRS Chapter 424 and competitive
bids for the sale of the revenue bonds shall be opened and read publicly by the
authority at a designated place, day and hour, all of which shall be announced in the
advertising made relative thereto. (4) In its proceedings authorizing the issuance of revenue bonds or notes, the authority shall fix and determine contractual provisions with the bondholders relating to the
receipt, allocation, pledging, and disbursement of authority revenues, and may enact
and determine terms, conditions, and restrictions pursuant to which additional
revenue bonds of the authority may be authorized and issued from time to time. The
proceedings, determinations and enactments of the authority shall specify that the
payment of principal of and interest on such authority revenue bonds and notes shall
constitute a first charge and lien against some or all authority revenues before any
authority revenues are used, applied, and disbursed for any other valid purposes of
the authority, including the payment of operation and maintenance costs incident to
the operation of the authority. (5) The proceeds of all revenue bonds or notes shall be used solely for the purpose of enabling the authority to enter into assistance agreements with governmental
agencies, to acquire and lease infrastructure projects to governmental agencies, to
purchase or refinance obligations of governmental agencies issued for infrastructure
projects, to make loans or grants to the governmental agencies for infrastructure
projects, or for any purpose authorized in this chapter. Interest coming due on the
revenue bonds or notes, for not to exceed three (3) years, together with a debt
service reserve equal to two (2) times the maximum principal and interest
requirements to come due during any fiscal year ending June 30, in connection with
the revenue bonds or notes, may be capitalized from bond proceeds, it being
determined and recognized that infrastructure projects, for which loans or grants are
made, may in some cases not become fully revenue-producing for a period of time
coincident with the construction period of the infrastructure projects. Revenue bond
or note proceeds may also be utilized, used and applied for the payment of ordinary
and necessary expenses in connection with issuance of the revenue bonds or notes,
including, but not by way of limitation, a sum equal to any discount in the sale of
revenue bonds or notes, if discount bids are authorized and permitted by the
authority; administrative expenses, including the preparation of revenue bonds or
notes, publication of notices, printing, and other costs; attorneys' fees; and other
ordinary and necessary costs of financing, including the payment of fees to fiscal Page 3 of 3 agents for advice and assistance in the preparation and marketing of revenue bonds
or notes. (6) Prior to the preparation of definitive revenue bonds or notes, the authority may, under like restrictions, issue interim receipts or temporary bonds, exchangeable for
definitive revenue bonds or notes when the revenue bonds or notes shall have been
executed, and are available for delivery. The authority may also provide for the
replacement of any revenue bonds or notes that shall have become mutilated or shall
have been destroyed or lost. Revenue bonds or notes may be issued under the
provisions of this chapter directly by the authority without obtaining the consent or
acquiescence of any cabinet, division, commission, board, department, or agency of
the state other than the Finance and Administration Cabinet, and without any other
proceedings or the happening of any other conditions or things except as
specifically required by this chapter and the provisions of the resolution or
resolutions of the authority authorizing the issuance of the revenue bonds or notes. Effective: July 15, 1994
History: Amended 1994 Ky. Acts ch. 373, sec. 10, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 477, sec. 6, effective July 13, 1990. -- Amended 1988 Ky. Acts
ch. 124, sec. 13, effective March 31, 1988. -- Amended 1984 Ky. Acts ch. 216,
sec. 15, effective July 13, 1984. -- Created 1972 Ky. Acts ch. 329, sec. 12.
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