2013 Kentucky Revised Statutes CHAPTER 198A - LOW-COST HOUSING 198A.090 Corporate authorization and operation of revenue bond financing -- Approval of General Assembly required for certain bond or note issuances.
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198A.090 Corporate authorization and operation of revenue bond financing -Approval of General Assembly required for certain bond or note
issuances.
(1)
(2)
(3)
(4)
(5)
Except as provided in subsection (6) of this section, the corporation may
provide for the issuance, at one (1) time or from time to time, of bonds of the
corporation if the cumulative outstanding indebtedness of the corporation's
bonds does not exceed five billion dollars ($5,000,000,000), in order to carry
out and effectuate its corporate purposes and powers.
In anticipation of the issuance of bonds, the corporation may provide for the
issuance, at one (1) time or from time to time, of bond anticipation notes. The
principal of and the interest on the bonds or notes shall be payable solely from
the funds provided for the payment. Notes may be made payable from the
proceeds of bonds or renewal notes or, if bond or renewal note proceeds are
not available, notes may be paid from any available revenues or assets of the
corporation.
The bonds or notes of each issue shall be dated and may be made
redeemable before maturity at the option of the corporation at a price and
under terms and conditions determined by the corporation. Bonds or notes
shall bear interest at a rate determined by the corporation. Notes shall mature
at a time not exceeding ten (10) years from their date and bonds shall mature
at a time not exceeding forty (40) years from their date, as determined by the
corporation. The corporation shall determine the form and manner of execution
of the bonds or notes, including any interest coupons to be attached thereto,
and shall fix the denomination and the place of payment of principal and
interest, which may be any bank or trust company within or without the
Commonwealth. If an officer whose signature or a facsimile of whose signature
appears on any bonds, notes, or coupons attached to them shall cease to be
an officer before the delivery thereof, the signature or facsimile shall be valid
and sufficient for all purposes as if he had remained in office until delivery. The
corporation may provide for the authentication of the bonds or notes by a
trustee or fiscal agent. The bonds or notes may be issued in coupon or in
registered form, or both, as the corporation may determine, and provision may
be made for the registration of any coupon bonds or notes as to principal alone
and also as to both principal and interest, and for the reconversion into coupon
bonds or notes of any bonds or notes registered as to both principal and
interest, and for the interchange of registered and coupon bonds or notes.
Upon the approval of a resolution of the corporation, authorizing the sale of its
bonds or notes, the bonds or notes may be sold in a manner, either at public or
private sale, and for a price the corporation shall determine to be for the best
interest of the corporation and best effectuate the purposes of this chapter, if
the sale is approved by the corporation.
The proceeds of any bonds or notes shall be used solely for the purposes for
which they are issued and shall be disbursed in the manner and under the
restrictions, if any, the corporation may provide in the resolution authorizing the
issuance of bonds or notes or in the trust agreement securing the same.
Prior to the preparation of definitive bonds, the corporation may, under like
restrictions, issue interim receipts or temporary bonds, with or without coupons,
(6)
(7)
exchangeable for definitive bonds when the bonds have been executed and
are available for delivery. The corporation may also provide for the replacement
of any bonds or notes which become mutilated, destroyed, or lost.
(a) Prior to the issuance of any bonds or notes that are not secured by:
1.
Direct obligations or obligations guaranteed by the United States of
America; or
2.
Obligations of federal agencies to the extent that the obligations are
backed by the full faith and credit of the United States of America; or
3.
Repurchase agreements with any primary dealer in securities fully
secured by obligations described in subparagraphs 1. and 2. of this
paragraph if the market value of the security is maintained at one
hundred three percent (103%) of the principal amount of the
repurchase agreement and the security is held by an independent
third-party custodian financial institution; or
4.
Insured or guaranteed construction loans or mortgage loans as
defined by KRS 198A.010(10) and (11); or
5.
Guaranty insurance policies which guarantee payment of the
principal and interest on the bonds issued by a nationally recognized
entity authorized to issue guarantees and rated in the highest rating
category by at least one (1) of the nationally recognized rating
services;
the corporation shall obtain the approval of the issuance from the General
Assembly in accordance with the provisions of KRS 56.870(1), unless the
provisions of paragraph (b) of this subsection apply. This requirement
shall not apply to refunding bond or note issues which are for the purpose
of achieving debt service savings and which do not extend the term of the
refunded bonds or notes.
(b) The corporation may provide for the issuance, at any one (1) time or from
time to time, of bonds which do not satisfy the requirements of paragraph
(a) of this subsection without approval of the issuance by the General
Assembly if the cumulative outstanding indebtedness of the corporation
that does not meet the requirements of paragraph (a) of this subsection
does not exceed thirty million dollars ($30,000,000).
(c) The corporation shall annually report on its housing and bonding
programs to the Interim Joint Committee on Appropriations and Revenue.
The Finance and Administration Cabinet shall provide to the corporation fiscal
consultant services regarding revenue bond management as necessary.
Effective:March 15, 2011
History: Amended 2011 Ky. Acts ch. 23, sec. 4, effective March 15, 2011. -Amended 2008 Ky. Acts ch. 76, sec. 1, effective July 15, 2008. -- Amended
2000 Ky. Acts ch. 15, sec. 1, effective July 14, 2000. -- Amended 1994 Ky. Acts
ch. 53, sec. 4, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 365,
sec. 1, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 99, sec. 7,
effective March 23, 1982. -- Amended 1978 Ky. Acts ch. 220, sec. 5, effective
June 17, 1978. -- Amended 1976 Ky. Acts ch. 310, sec. 1. -- Amended 1974 Ky.
Acts ch. 74, Art. II, sec. 9(1); and ch. 383, sec. 6. -- Created 1972 Ky. Acts
ch. 70, sec. 10.
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