67A.770 Deposit of prepayments and bond sale proceeds -- Security -Disbursements.
As prepayments are received and when the bonds are delivered and the proceeds are
received by the urban-county government, the same shall be deposited in an interestbearing account in a bank or trust company, or combined bank and trust company, and to
the extent such deposit may exceed insurance provided by federal deposit insurance
corporation (if the depository be a member thereof, otherwise the full amount), the same
shall be secured by a valid pledge of bonds or notes of the United States government, or
fully guaranteed thereby, having at all times a market value equal to the undisbursed
balance of such deposit; or shall be secured in such other manner as the governing body
may prescribe or approve. Costs of the project which may then be earned and payable,
may be paid forthwith. There shall be set aside into the sinking fund, hereinafter created,
a sum from bond proceeds equal to all interest which will accrue on said bonds until the
date when the first improvement assessment levied in connection therewith will become
due and payable. The remainder may be disbursed from time to time in payment of costs
of the project, as herein defined, except that payments on account of the construction
contracts shall not exceed ninety percent (90%) of the amount shown by a written
certificate of the engineer to have been earned for materials furnished and/or labor
performed by any contractor, the retained ten percent (10%) to be disbursed only upon
final acceptance of the finished work of such contractor. If, after completion, acceptance
and payment of the work of all contractors, and the payment of all costs of the
improvement project, as herein defined, there shall remain an unexpended balance of
bond proceeds, such balance shall be transferred to the sinking fund created and
maintained in connection with the project, as provided in KRS 67A.800. The advanced
installment and the one-half of one percent (0.5%) collected pursuant to KRS 67A.755
shall be part of the sinking fund.
Effective: June 21, 1974
History: Created 1974 Ky. Acts ch. 394, sec. 13, effective June 21, 1974.
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