2014 Kentucky Revised Statutes
CHAPTER 164A - HIGHER EDUCATION FINANCE
164A.080 Bond issue -- Amount -- Interest -- Use of proceeds -- Approval of General Assembly required for certain bond or note issuances -- Exception.
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<![CDATA[164A.080 Bond issue -- Amount -- Interest -- Use of proceeds -- Approval of
General Assembly required for certain bond or note issuances -Exception.
(1)
(2)
(3)
The corporation may provide for the issuance, at one (1) time or from time to
time, of not exceeding five billion dollars ($5,000,000,000) in bonds of the
corporation to carry out and effectuate its corporate purposes and powers. In
anticipation of the issuance of bonds, the corporation may provide for the
issuance, at one (1) time or from time to time, of bond anticipation notes. The
principal of and the interest on bonds or notes shall be payable solely from the
funds provided for payment. Any notes may be made payable from the
proceeds of bonds or renewal notes or, if bond or renewal note proceeds are
not available, notes may be paid from any available revenues or assets of the
corporation. The bonds or notes of each issue shall be dated and may be
made redeemable before maturity at the option of the corporation at the price
or prices and under the terms and conditions determined by the corporation.
Any bonds or notes shall bear interest at a rate or rates determined by the
corporation. Notes shall mature at a time or times not exceeding five (5) years
from their date or dates and bonds shall mature at a time or times not
exceeding thirty (30) years from their date or dates, as determined by the
corporation. The corporation shall determine the form and manner of execution
of the bonds or notes, including any interest coupons to be attached, and shall
fix the denomination or denominations and the place or places of payment of
principal and interest, which may be any bank or trust company within or
without the state. If any officer whose signature or a facsimile of whose
signature appears on any bonds or notes or coupons attached to them shall
cease to be an officer before the delivery of the bonds or notes, the signature
or facsimile shall be valid and sufficient for all purposes as if he had remained
in office until the delivery. The corporation may also provide for the
authentication of the bonds or notes by a trustee or fiscal agent. The bonds or
notes may be issued in coupon or in registered form, or both, as the
corporation may determine, and provision may be made for the registration of
any coupon bonds or notes as to principal alone and also as to both principal
and interest, and for the reconversion into coupon bonds or notes of any bonds
or notes registered as to both principal and interest, and for the interchange of
registered and coupon bonds or notes. Upon the approval of a resolution of the
corporation authorizing the sale of its bonds or notes, the bonds or notes may
be sold in a manner, either at public or private sale, and for a price the
corporation shall determine to be for the best interest of the corporation and
best effectuate the purposes of this chapter if the sale is approved by the
corporation.
The proceeds of any bonds or notes shall be used solely for the purposes for
which they are issued and shall be disbursed in a manner and under
restrictions, if any, the corporation may provide in the resolution authorizing the
issuance of bonds or notes or in the trust agreement securing the bonds or
notes. The principal of and interest on any bonds issued by the corporation
shall be payable only from the proceeds derived by the corporation from
insured student loans made and purchased from the proceeds of the bonds.
(a) Prior to the issuance of any bonds or notes that are not secured by the
(b)
repayment of student loans at least ninety-five percent (95%) insured by
the guarantee agency and reinsured by the United States of America, the
corporation shall obtain approval of the issuance from the General
Assembly in accordance with the provisions of KRS 56.870(1). This
requirement shall not apply to refunding bond or note issues which are for
the purpose of achieving debt service savings and which do not extend
the term of the refunded bond or note.
Notwithstanding paragraph (a) of this subsection, if during the interim of
sessions of the General Assembly, the federal act is amended to reduce
to less than ninety-five percent (95%) the maximum rate of insurance
payable by the guarantee agency or reinsurance payable by the
Secretary of Education of the United States on insured student loans,
upon notification by the corporation to the Legislative Research
Commission of the change in the federal act, the corporation may, until
the adjournment of the next even-numbered-year regular session of the
General Assembly, issue bonds or notes for student loans insured by the
guarantee agency and reinsured by the Secretary of Education of the
United States to the maximum extent permitted by the federal act.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 161, sec. 1, effective June 20, 2005. -Amended 2002 Ky. Acts ch. 6, sec. 1, effective July 15, 2002. -- Amended 2001
Ky. Acts ch. 58, sec. 30, effective June 21, 2001. -- Amended 2000 Ky. Acts
ch. 52, sec. 1, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 350,
sec. 8, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 35, sec. 2,
effective March 8, 1994; and ch. 53, sec. 3, effective July 15, 1994. -- Amended
1984 Ky. Acts ch. 314, sec. 1, effective July 13, 1984. -- Amended 1982 Ky.
Acts ch. 179, sec. 1, effective April 1, 1982. -- Amended 1980 Ky. Acts ch. 124,
sec. 1, effective April 3, 1980. -- Created 1978 Ky. Acts ch. 387, sec. 8, effective
June 17, 1978.
Legislative Research Commission Note (7/15/94). This section was amended by
1994 Ky. Acts chs. 35 and 53. Where these Acts are not in conflict, they have
been codified together. Where a conflict exists, Acts ch. 53, which was last
enacted by the General Assembly, prevails under KRS 446.250.
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