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198A.165 Authorization for establishing reserve and replacement funds.
The corporation shall be authorized and empowered in connection with the issuance
of its bonds and notes for housing purposes pursuant to this chapter to establish in
respect of such bonds and notes such reserve funds or replacement funds as may
be required in the sound discretion of the board of directors of the corporation to
enable the corporation to effectuate its proper public purposes. In the event any
such reserve fund or replacement fund created by the corporation in connection with
any such bond issue or note issue should, in violation of any contract made by the
corporation with any bondholder or note holder be monetarily deficient in any respect
as of any date of accounting so stipulated by the corporation, the corporation shall
immediately make formal request in writing to the secretary of the Finance and
Administration Cabinet, and to the Governor of Kentucky that sums adequate to
restore such reserve fund or replacement fund to its contractually required level and
to pay any overdue principal and interest on any outstanding bonds and notes of the
corporation be included in the next succeeding executive budget, and that such
budget request with recommendation for approval by the General Assembly to the
corporation for the use and benefit of such reserve fund or replacement fund. In the
event the next scheduled even-numbered-year regular session of the General
Assembly of Kentucky shall occur more than six (6) months after any such request
by the corporation, the corporation shall request that sums adequate to restore such
reserve fund or replacement fund to such contractually required level and to pay any
overdue principal and interest on any outstanding bonds and notes of the
corporation be made available from the Governor's contingency fund, and if such
funds are so made available the budget request hereinabove described in this
section shall be correspondingly reduced.
Effective:June 21, 2001
History: Amended 2001 Ky. Acts ch. 58, sec. 27, effective June 21, 2001. -Created 1974 Ky. Acts ch. 383, sec. 8.
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