2011 Kentucky Revised Statutes CHAPTER 58 ACQUISITION AND DEVELOPMENT OF PUBLIC PROJECTS THROUGH REVENUE BONDS 58.540 Power to issue revenue bonds for particular purposes -- Interim financing.
KY Rev Stat § 58.540 (1996 through Reg Sess) What's This?
58.540 Power to issue revenue bonds for particular purposes -- Interim financing.
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The authority may provide for the issuance of revenue bonds to pay all or any part
of the cost of the acquisition of the properties of Churchill Downs or expenses
incident thereto referred to in KRS 58.510, or any part thereof or interest therein,
and secure the payment thereof by a lien on the properties acquired with the
proceeds of the bonds. The bonds shall bear interest at such rate not exceeding ten
percent (10%) per annum and shall mature at such time not exceeding fifteen (15)
years from their date, as may be provided by the authority, and may be made
redeemable before maturity, at the option of the authority, at a price not less than
the face amount thereof and accrued interest thereon. The proceeds of the bonds
shall be used solely for the payment of the cost of the acquisition of Churchill
Downs or expenses incident thereto, and shall be disbursed in such manner and
under such restrictions, if any, as the authority may provide in the proceedings
authorizing the issuance of the bonds or in the trust indenture securing the same.
Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds
originally issued for the acquisition of Churchill Downs or expenses incident
thereto as provided for in subsection (1) of this section, may issue revenue bonds
payable solely from the charges, revenues, rentals and other funds pledged for their
payment, for the purpose of paying all or any part of the cost of the acquisition of
additional property, the reconstruction of improvements or the erection of additional
improvements, but such revenue bonds shall be subordinate to the revenue bonds
issued for the original acquisition of Churchill Downs or expenses incident thereto.
Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds
originally issued for the acquisition of Churchill Downs or expenses incident
thereto as provided for in subsection (1) of this section, and for the acquisition of
additional property, the reconstruction of improvements or the erection of additional
improvements provided for in subsection (2) of this section, may issue revenue
bonds payable solely from the charges, revenues, rentals and other funds pledged
for their payment, for the purpose of paying all or any part of the cost of further
developing the museum at Churchill Downs and establishing a facility for the
exhibition of prior Kentucky Derby and other important races held at Churchill
Downs as aforesaid, but such revenue bonds shall be subordinate to any then
outstanding previously issued revenue bonds.
The authority may agree to or establish any method of interim financing by the
authority during the acquisition of additional property, the reconstruction of
improvements or the erection of additional improvements hereinbefore provided for
and in developing the museum at Churchill Downs and establishing a facility for the
exhibition of prior Kentucky Derby and other important races held at Churchill
Downs as aforesaid, with borrowed funds from any bank, trust company, or banking
institution, such borrowings to be paid from earnings or through the sale of revenue
bonds before, during or at completion of such project, but such revenue bonds shall
be subordinate to any then outstanding previously issued revenue bonds; and the
interest rates, maturities and other provisions shall be such as the authority may at
the time of issuance deem to be proper.
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If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be
less than the cost for which issued, additional bonds may in like manner be issued to
provide the amount of the deficit, and, unless otherwise provided in the proceedings
authorizing the issuance of the bonds or in the trust indenture securing the same,
shall be deemed to be of the same issue and shall be entitled to payment from the
same fund without preference or priority of the bonds first issued. If the proceeds of
the bonds of any issue exceed such cost, the surplus shall be deposited to the credit
of the sinking fund for such bonds or any account therein as the authority shall have
provided in the proceedings or trust indenture authorizing and securing the bonds.
Prior to the preparation of definitive bonds, the authority may, under like
restrictions, issue interim receipts or temporary bonds, with or without coupons,
exchangeable for definitive bonds when such bonds have been executed and are
available for delivery. The authority may also provide for the replacement of any
bonds that become mutilated or are destroyed or lost.
Effective: June 17, 1978
History: Created 1978 Ky. Acts ch. 111, sec. 5, effective June 17, 1978.
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