2014 Kentucky Revised Statutes CHAPTER 175B - KENTUCKY PUBLIC TRANSPORTATION INFRASTRUCTURE AUTHORITY 175B.060 Issuance of project revenue bonds -- Use of bond proceeds.
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175B.060 Issuance of project revenue bonds -- Use of bond proceeds.
(1)
(2)
(a)
1.
An issuing authority may, by resolution, authorize the issuance of
project revenue bonds for the purpose of paying the cost of a
project.
2.
The principal of and the interest on the project revenue bonds shall
be payable solely from the funds provided for the payment.
3.
The bonds of each issue:
a.
Shall be dated;
b.
Shall bear interest at a rate or method of determining rates;
c.
Shall mature at a time not exceeding forty (40) years from their
issuance date, as determined by the issuing authority; and
d.
May be redeemable before maturity, at the option of the
issuing authority, at a price and under terms and conditions as
may be fixed by the issuing authority prior to the issuance of
the project revenue bonds.
4.
The issuing authority shall:
a.
Determine the form of the bonds;
b.
Fix the denomination of the bonds; and
c.
Fix the place of payment of principal and interest, which may
be at any bank or trust company within or without the
Commonwealth.
(b) 1.
The project revenue bonds shall be signed by the chairman or other
presiding officer of the issuing authority or shall bear that officer's
facsimile signature, and the seal of the issuing authority or a
facsimile shall be affixed to the project revenue bonds and attested
by the secretary of the issuing authority.
2.
If any officer whose signature or a facsimile of whose signature
appears on any project revenue bonds ceases to be an officer
before the delivery of the project revenue bonds, the signature or
facsimile shall be valid and sufficient for all purposes as if the officer
had remained in office until the delivery.
3.
All project revenue bonds issued under this chapter shall have all
the qualities and incidents of negotiable instruments under the
negotiable instruments law of the Commonwealth.
4.
The project revenue bonds shall be issued in registered form.
5.
The issuing authority may sell the project revenue bonds in a
manner, either at public or private sale, and for a price as it
determines will best carry out the purposes of this chapter.
(a) The proceeds of the project revenue bonds of each issue shall be used
solely for the payment of the cost of the project or projects for which the
bonds were issued, and shall be disbursed in a manner and under the
restrictions the issuing authority provides in the resolution authorizing the
issuance of the project revenue bonds or in the trust agreement securing
the project revenue bonds.
(b)
(3)
If the proceeds of the project revenue bonds of any issue, by error of
estimates or otherwise, are less than the cost of the project or projects,
additional project revenue bonds may be issued to provide the amount of
the deficit, and, unless otherwise provided in the resolution authorizing
the issuance of the project revenue bonds or in the trust agreement
securing the project revenue bonds, shall be deemed to be of the same
issue and shall be entitled to payment from the same fund without
preference or priority of the project revenue bonds first issued.
(c) If the proceeds of the project revenue bonds of any issue exceed the
cost, the surplus shall be deposited to the credit of the sinking fund
required by KRS 175B.040(3)(a) for the project revenue bonds or any
account or accounts the issuing authority shall have provided for in the
proceedings or trust indenture authorizing and securing the project
revenue bonds.
Project revenue bonds shall be issued in compliance with KRS 42.420 and
45A.840 to 45A.879. Except as provided in KRS 42.420 and 45A.840 to
45A.879, project revenue bonds may be issued under this chapter without
obtaining the consent of any local government, department, division, authority,
board, bureau, or agency of the Commonwealth, or of the Commonwealth, and
without any other proceedings or conditions other than those proceedings or
conditions which are specifically required by this chapter.
Effective:June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 86, effective June 26,
2009.
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