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224A.085 Interim financing.
The authority may enter into interim financing agreements with governmental
agencies, and governmental agencies may enter into interim financing agreements
with the authority in connection with eligible projects. Each such interim financing
agreement may be subject to the approval by the State Water Pollution Agency, or
the State Public Service Commission, if applicable, may contain and include such
provisions as may be agreed upon by the parties thereto, and shall include and
prescribe the following provisions:
(1) An estimate of the reasonable cost of the eligible project, as determined by the
authority;
(2) The amount of state or federal grants or loans to be made to the governmental
agency;
(3) The time or times at which such state or federal grants or loans shall become
payable to the governmental agency;
(4) The specific purpose or purposes for which the proceeds of state or federal
grants or loans made to the governmental agency shall be expended;
(5) The conditions under which state or federal grants or loans may be expended
on account of the eligible project by the governmental agency;
(6) An agreement by the governmental agency:
(a) To proceed expeditiously with and promptly complete the eligible project
or cause same to be completed in accordance with the plans and
specifications approved by federal and state agencies;
(b) To commence or cause to be commenced operation of the eligible project
on completion of construction and not to discontinue operations or
dispose of such eligible project without the approval of the authority, and
the State Water Pollution Agency or State Public Service Commission, if
applicable;
(c) To operate and maintain or cause to be operated and maintained the
eligible project in accordance with applicable provisions of federal and
state law and the terms and conditions of the loan documents
implementing federal or state grants or loans to the governmental agency;
(d) To provide for the payment of the governmental agency's share of the
cost of the eligible project through the issuance of the governmental
agency long term debt obligations in the appropriate manner and at the
appropriate time in order that sufficient funds will be available to repay
and retire bond anticipation notes issued by the authority on behalf of said
governmental agency.
Effective:July 13, 1984
History: Created 1984 Ky. Acts ch. 216, sec. 14, effective July 13, 1984.
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