2014 Kentucky Revised Statutes CHAPTER 103 - REVENUE BONDS FOR MISCELLANEOUS CITY OR COUNTY PROJECTS 103.246 Financing pollution control facilities for industrial concerns and utility companies by cities and counties.
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103.246 Financing pollution control facilities for industrial concerns and
utility companies by cities and counties.
(1)
(2)
(3)
(a)
The term "pollution control facilities" means any land, building, structure,
machinery, equipment, device, system or facility functionally related
thereto designed for the control, containment, reduction, prevention or
abatement of atmospheric pollutants or contaminants, solid waste, noise,
radiation, or water pollution produced by industrial concerns and utility
companies, including, but not by way of limitation, any such facilities used
in whole or in part to control, contain, reduce, prevent or abate
atmospheric, solid waste, noise, radiation, or water pollution by removing,
altering, containing, disposing or storing pollutants, contaminants, wastes,
whether gaseous, solid or liquid, thermal or radioactive. Said term
includes all pollution control facilities whenever constructed,
reconstructed, purchased, leased or otherwise acquired and placed in
use, which may legally be financed by issuance of bonds determined to
be tax-exempt pursuant to the provisions of Section 103(b) of the Internal
Revenue Code of 1954, as amended, and regulations promulgated
thereunder. Pollution control facilities may be constructed as part of, and
may include, facilities also designed for the recovery of chemicals or other
by-products or to serve other purposes which also contribute to the
control of or abatement of atmospheric, solid waste and water pollution.
(b) The term "industrial concern" means any domestic or foreign corporation,
company, partnership, association, rural electric cooperative corporation,
or any other legal entity.
It is hereby determined and declared that the acquisition and financing of
pollution control facilities for utilization by industrial concerns and utility
companies by the issuance of bonds of cities and counties amortized by
payments made by such industrial concerns and utility companies inures to the
public interest, and constitutes the performance of a proper governmental
purpose. It is the intent of this section to afford to cities and counties alternative
methods of financing pollution control facilities to the end that atmospheric,
solid waste and water pollution in the Commonwealth may be abated and
controlled to the maximum possible extent.
As an alternative to the procedure set forth in KRS 103.200 to 103.285,
inclusive, any city or county, for the purpose of financing the acquisition of
pollution control facilities for any industrial concern or utility company, may
issue negotiable bonds pursuant to KRS 103.200 to 103.285, inclusive, and
either (a) loan the proceeds from the sale of such bonds to an industrial
concern or utility company to finance the acquisition of such pollution control
facilities, (b) sell such pollution control facilities to an industrial concern or utility
company pursuant to agreement, or (c) lease such pollution control facilities
from an industrial concern or utility company and sublease same to such
industrial concern or utility company. In the event of use of such alternative
financing procedure, such bonds shall not constitute an indebtedness of such
city or county within the meaning of the Constitution of Kentucky, but shall be
payable as to principal and interest solely from the revenues derived from
payments, repayments, or sublease payments made by such industrial concern
(4)
(5)
(6)
or utility company to such city or county in respect of such loan, sale or
sublease.
In the event that an alternate procedure authorized by this section is to be
utilized in the financing of pollution control facilities, (i) the provisions of KRS
103.200 to 103.285, inclusive, shall apply, except that the proceedings and
procedures therein described shall contemplate and authorize a transaction in
the form of (a) a loan of the proceeds from the sale of such bonds by such city
or county to an industrial concern or utility company for the acquisition of such
pollution control facilities, (b) a sale of such pollution control facilities to an
industrial concern or utility company pursuant to agreement, or (c) a lease of
such pollution control facilities from an industrial concern or utility company and
sublease of same to such industrial concern or utility company; and (ii) the
loan, sale, lease and sublease and any agreement or contract with respect
thereto may include such provisions as such city or county shall deem
appropriate to effect the securing of the financing undertaken in respect of such
pollution control facilities, including, but not by way of limitation, (a) the pledge
of the general credit of any such industrial concern or utility company, (b) the
making of guarantees to an indenture trustee or to such city or county in
respect of amortization of such bonds by any such industrial concern or utility
company, (c) the creation of liens of security interests on any property or
portion thereof of any such industrial concern or utility company, either senior
or junior to, or ranking equally with, any other lien, security interest or rights of
others, including any party or parties to any agreement in connection with such
financing and/or its or their respective security holders and indenture trustees
or mortgage trustees, and (d) the pledge of other direct securities of such
industrial concern or utility company in respect of such bonds.
In the event any city or county shall finance pollution control facilities pursuant
to the express authority contained in this section, title to such pollution control
facilities shall not be acquired by such city or county in the case of a loan or
lease transaction, and, in the case of a sale transaction, title may pass at any
time, and the statutory mortgage lien for which provision is made in KRS
103.250 shall not apply to any such pollution control facilities.
Bonds issued by cities and counties pursuant to the authority contained in this
section may be caused to mature as to principal in term or serial maturities not
to exceed thirty (30) years from date of issue.
History: Created 1974 Ky. Acts ch. 342, sec. 1.
Legislative Research Commission Note (1982). A technical correction has been
made in this section by the Reviser of Statutes pursuant to KRS 7.136.
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