Download as PDF
67A.885 Deposit of funds -- Security -- Interest.
When any bonds are delivered and the proceeds are received by the government,
they shall be deposited in a bank or trust company or combined bank and trust
company, and to the extent the deposit may exceed insurance provided by federal
deposit insurance corporation, the same shall be secured by a valid pledge of direct
bonds or notes of the United States government or bonds or notes fully guaranteed
thereby having at all times a market value equal to the undisbursed balance of such
deposit; or shall be secured in any other manner as the urban-county council may
approve. Costs of the project shall be paid from the proceeds of the bonds pursuant
to such regulations and requirements as shall be determined by the government and
incorporated into the ordinance of bond authorization. There shall be set aside into
the sinking fund hereinafter created a sum from bond proceeds equal to all interest
which will accrue on the bonds until the date when the first improvement benefit
assessment levied in connection therewith will become due and payable, together
with such further sum as may be provided in the ordinance of bond authorization, not
to exceed interest on the bonds for a period of three (3) years. If provided in the
ordinance of bond authorization, all or any portion of the debt service reserve
requirement shall be set aside into the debt service reserve fund. If after completion,
acceptance and payment of the work of all contractors and the payment of all costs
of the project there shall remain an unexpended balance of bond proceeds, the
balance shall be transferred to the sinking fund created and maintained in
connection with the project as provided by KRS 67A.871 to 67A.894.
Effective:March 30, 1976
History: Created 1976 Ky. Acts ch. 371, sec. 15, effective March 30, 1976.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.