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353.408 Issuance of bonds for benefit of authority.
(1)
(2)
(3)
Bonds shall be issued by a gas acquisition authority pursuant to KRS 65.270
and this section, provided that, notwithstanding the provisions of KRS 65.270
or any other provision of law, the authority:
(a) May issue notes in anticipation of the issuance of bonds, issue bonds for
one (1) or more projects and purposes, and issue bonds to refund bonds
previously issued;
(b) May issue bonds in one (1) or more series that mature not more than
forty (40) years from their date and are subject to redemption or tender for
purchase by the owners thereof at such times, upon such terms and at
such prices as are set forth in the proceedings authorizing their issuance;
(c) May issue and secure its bonds pursuant to a bond resolution, trust
indenture, or other security instrument approved by its governing body,
establish and fund from bond proceeds or its revenues and reserves as it
shall deem necessary or desirable, and enter into such covenants and
agreements with the owners of the bonds as shall be necessary to secure
the same;
(d) May sell its bonds at public or private sale in such manner, at such price,
and upon such terms as shall be determined by its governing body;
(e) May, in connection with its bonds, enter into contracts for bond insurance,
surety bonds, bond ratings, letters of credit, and other forms of credit
enhancement, lines of credit, trustee and paying agent services, standby
bond purchase agreements and other liquidity facilities, and bond
remarketing agreements, reimbursement agreements, interest rate swap,
exchange, cap, or collar contracts, forward delivery contracts, all as
approved by its governing body; and
(f) Shall take all actions necessary to authorize, issue, and secure its bonds,
and no actions shall be required to be taken under KRS 65.270 by the
municipal utilities that created the authority.
Bonds issued by a gas acquisition authority shall be fully negotiable for all
purposes. Any lien, pledge, or other security interest created by an authority to
secure its obligations is valid, binding, perfected, and enforceable on and after
the effective date of the bond resolution, trust indenture, or other security
instrument under which it is created, and no physical delivery, filing, or
recording shall be required to perfect the same under the Uniform Commercial
Code or otherwise. An authority may, but shall not be required to, publish any
of its proceedings in connection with the issuance of bonds.
Bonds issued by a gas acquisition authority shall constitute an obligation of
only the authority, shall be payable solely from the property, revenue, and
income pledged for their payment, and shall not constitute an indebtedness,
liability, or obligation of the municipal utilities that created the authority, the
Commonwealth, or any political subdivision thereof other than the authority.
Effective:July 15, 2008
History: Created 2008 Ky. Acts ch. 159, sec. 5, effective July 15, 2008.
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