2013 Kentucky Revised Statutes CHAPTER 67 - COUNTY GOVERNMENT (FISCAL COURTS AND COUNTY COMMISSIONERS) 67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent.
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67.550 General obligation bonds, deed of trust authorized -- Effect -- Intent.
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Notwithstanding any of the other provisions of KRS 67.450 to 67.550, the
county buildings commission may, by declaring its desire to do so, provide, in
addition to all of the other provisions authorized in KRS 67.450 to 67.550 in
connection with the issuance of its bonds, that such bonds shall be its general
obligations and may, in connection with the issuance of its bonds, execute a
mortgage deed of trust in favor of a trustee, providing that in the event of
default by the commission in the payment of interest or principal of its bonds or
in the event of default of any other covenant contained in such mortgage deed
of trust the trustee, upon behalf of the bondholders, may institute and carry
through foreclosure proceedings, with the property secured by the mortgage
deed of trust put up for sale on foreclosure proceedings, the proceeds of such
sale to be used for the benefit of the bondholders. In connection with such plan
of financing, such provisions may be inserted in the bonds themselves and in
the mortgage deed of trust as may be necessary to protect the bondholders
and in order to make such bonds salable with the lowest net interest cost to the
commission. If the county buildings commission declares its intent by resolution
to follow the provisions of this section, and in order to do so it is necessarily
inconsistent that the provisions of any other section of KRS 67.450 to 67.550
be complied with, such other provisions of KRS 67.450 to 67.550 which are
necessarily inconsistent with the provisions of this section shall not be complied
with to the extent but only to the extent of such necessary inconsistency. If
general obligations of the county buildings commission are issued pursuant to
the provisions of this section, such obligations shall be general obligations only
of the county buildings commission as a public corporation and shall not be
general obligations of the individual members of such county buildings
commission to any extent.
It is the intent of this section to permit the county buildings commission, if it
desires to do so, to issue obligations under this section which may also be
secured in the same way that obligations issued under the provisions of other
sections of KRS 67.450 to 67.550 are secured, to the full extent that this may
be done consistent with the provisions of this section.
History: Created 1962 Ky. Acts ch. 224, sec. 21.
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