2013 Kentucky Revised Statutes CHAPTER 66 - ISSUANCE OF BONDS AND CONTROL OF FUNDS 66.161 Issuing bonds or obligations to fund or refund outstanding bonds.
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66.161 Issuing bonds or obligations to fund or refund outstanding bonds.
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Upon the determination of the governing body that the issuance will be in the
issuer's best interest, the issuer may:
(a) Issue bonds to fund or refund any outstanding bonds or obligations
previously issued. Any bonds issued pursuant to this subsection shall
mature as determined by the governing body consistent with KRS 66.091,
but their maturity shall not be later than the date that would have been
permitted by KRS 66.091, as if the original bonds or obligations had been
issued under the provisions of this chapter; and
(b) Issue obligations, if authorized by other law, to fund or refund any
outstanding bonds previously issued under this chapter.
Bonds may be issued pursuant to this section to fund or refund all or any
portion of the outstanding bonds, whether or not the bonds to be funded or
refunded were issued subject to call or redemption prior to maturity, or are the
original bonds, or are themselves refunding bonds.
Moneys derived from the proceeds of bonds issued pursuant to this section to
fund or refund bonds shall, to the extent required by the legislation or
proceedings, be placed in an escrow fund, which may be in the sinking fund,
and pledged for the purpose of funding or refunding the refunded bonds and
shall be used, together with any other available funds as provided in this
section, for that purpose. When the issuer has placed in escrow moneys
derived from proceeds of refunding bonds or obligations or otherwise, or
investments, or a combination of both, determined to be sufficient, with the
interest or other investment income accruing on those investments, for the
payment of debt charges on the refunded bonds, the refunded bonds shall no
longer be considered to be outstanding, shall not be considered for purposes of
determining any limitation, direct or indirect, on the net indebtedness of the
issuer, and the levy of taxes or other charges for the payment of debt charges
on the refunded bonds under this chapter.
The authority granted by this section is in addition to and not a limitation on any
other authorizations granted by or pursuant to law for the same or similar
purposes.
Effective:July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 16, effective July 15, 1996.
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