2014 Kentucky Revised Statutes CHAPTER 268 - DRAINAGE AND RECLAMATION ACT OF 1918 268.370 Board may issue bonds -- Terms -- Use of proceeds -- Duties of treasurer -- Bond -- Duties of county clerk -- Warrants for payment.
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268.370 Board may issue bonds -- Terms -- Use of proceeds -- Duties of
treasurer -- Bond -- Duties of county clerk -- Warrants for payment.
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(2)
(3)
The board of drainage commissioners may, if in their judgment it seems best,
issue bonds on behalf of any district under their control, not to exceed ninety
percent (90%) of the total amount of the minimum district assessments levied
upon the property of the district approved by the county judge/executive. The
bonds shall be in denominations of not less than one hundred dollars ($100),
bearing interest payable at least annually from the date of issue, to mature at
annual or more frequent intervals within thirty (30) years, commencing after a
period of years not later than five (5) years, to be determined by the board.
Both principal and interest shall be payable at some convenient bank or trust
company's office, to be named in the bonds. The bonds shall be signed by the
president of the board, attested with the seal of the board, and the signature of
the secretary and countersigned by the county clerk of the county in which the
district is organized. All bonds shall be executed and delivered to the treasurer
of the district, who shall sell them in quantities and at dates as the board
considers necessary. The funds derived from the sale of bonds shall be used
only to pay the cost of improvements and the expenses, fees, and salaries
authorized by law. The secretary of the board shall certify to the county clerk in
which the district was organized a copy of the resolution authorizing and
directing the issuance of the bonds, which shall contain a list of the bonds, their
dates of maturity, and amounts. The clerk shall record this resolution in the lis
pendens record in his office. The bonds shall show on their face the purpose
for which they are issued.
The bonds shall be payable out of money derived from the assessments upon
property, and a sufficient amount of the drainage assessment shall be
appropriated by the board to pay the principal and interest. This sum shall be
preserved in a separate fund for that purpose. All bonds and coupons not paid
at maturity shall bear interest from maturity until paid, or until sufficient funds
for their payment have been deposited at the place of payment, and this
interest shall be appropriated by the board out of the penalties and interest
collected on assessments or any other available funds of the district. The
board, in making the annual levy of assessments, shall take into account the
maturing bonds and interest on all bonds and make ample provisions in
advance for their payment. If the proceeds of the original levy of assessments
are not sufficient to pay the principal and interest of all bonds issued, the board
shall make any additional levy upon benefits assessed necessary for this
purpose. However, no levy of assessments shall be made in excess of the
benefits to the property as shown by the report of the appraisers, as corrected,
that will in any manner impair the security of bonds or the fund available for the
payment of the principal or interest.
When he receives the bonds the treasurer shall execute and deliver to the
president of the board a bond with good and sufficient sureties, to be approved
by the board, conditioned that he shall account for and pay over as required by
law and as ordered to do by the board all money received by him on the sale of
any bonds, and that he will only sell and deliver the bonds to the purchaser of
the bonds according to the terms of this section, and that he will return, duly
canceled, any bonds not sold to the board when ordered by it to do so. This
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bond shall remain in the custody of the president of the board, who shall
produce it for inspection or as evidence whenever legally required to do so.
The bond of the treasurer may, if the board directs, be signed by a surety or
bonding company, which may be approved by the board. The successor in
office of any treasurer shall comply with all provisions applicable to his
predecessor before receiving bonds or their proceeds. The treasurer shall
promptly report all sales of bonds to the board.
The board shall, at reasonable times, prepare and issue warrants for the
payment of the maturing bonds sold and the interest payments coming due on
all bonds sold. Each warrant shall specify what bonds and accruing interest it is
to pay, and the treasurer shall place sufficient funds at the place of payment to
pay the maturing bonds and coupons when due, as well as a reasonable
compensation to the bank or trust company for paying them, not to exceed two
dollars and fifty cents ($2.50) for each one thousand dollars ($1,000) par value
of bonds or coupons paid.
Effective:July 15, 1996
History: Amended 1996 Ky. Acts ch. 274, sec. 60, effective July 15, 1996. -Amended 1978 Ky. Acts ch. 384, secs. 416 and 578, effective June 17, 1978. -Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 245, effective January 2,
1978. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942,
from Ky. Stat. sec. 2380b-42.
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