2014 Kentucky Revised Statutes
CHAPTER 56 - STATE LANDS AND BUILDINGS
56.063 Deposit and use of savings generated as result of refunding transaction.
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<![CDATA[56.063 Deposit and use of savings generated as result of refunding
transaction.
(1)
(2)
As used in this section:
(a) "Asset/liability commission" means the Kentucky Asset/Liability
Commission established by KRS 56.861;
(b) "Commission" means the State Property and Buildings Commission
established by KRS 56.450;
(c) "General fund" has the same meaning as in KRS 48.010(15)(a);
(d) "Present value savings" means the difference expressed in terms of
current dollars between debt service on refunded bonds and debt service
on refunding bonds;
(e) "Refunded bonds" means outstanding bonds, notes, or other obligations
that were issued at any time, and that are refinanced through a refunding
transaction;
(f) "Refunding bonds" means new bonds, notes, or other obligations issued
to refund outstanding bonds, notes, or other obligations, including
redemption premiums and any interest accrued or to accrue to the date of
redemption as part of a refunding transaction;
(g) "Refunding transaction" means a transaction:
1.
Whereby outstanding bonds, notes, or other obligations are
refunded by the issuance of new refunding bonds, notes, or other
obligations; and
2.
That is directly supported in whole or in part by appropriations from
the general fund or road fund;
(h) "Revenue shortfall" has the same meaning as in KRS 48.010(18);
(i) "Road fund" has the same meaning as in KRS 48.010(15)(g); and
(j) "State agency":
1.
Includes:
a.
Any state administrative body, agency, department, or division
as defined in KRS 42.005; and
b.
Any board, commission, institution, or division exercising any
function of the state;
with the authority to issue bonds, notes, or other obligations, and to
enter into refunding transactions with respect to those bonds, notes,
or other obligations; but
2.
Does not include universities that are part of the postsecondary
education system, as defined in KRS 164.001.
Notwithstanding any other provision of the Kentucky Revised Statutes, the
savings generated from reduced debt service payments during a fiscal
biennium as a result of any refunding transaction undertaken by the
commission, the asset/liability commission, or any state agency that:
(a) Results in a reduction in required debt service during the fiscal biennium;
and
(b) Does not result in positive net present value savings;
shall be deposited in the budget reserve trust fund account established by KRS
48.705, and shall not be used as part of any budget-balancing measures
adopted or taken by the executive branch either in response to a revenue
shortfall, or to address expenditure reductions required by an enacted biennial
budget for the executive branch.
Effective:July 12, 2012
History: Created 2012 Ky. Acts ch. 42, sec. 1, effective July 12, 2012.
Legislative Research Commission Note (7/12/2012). Under the authority of KRS
7.136(1), the Reviser of Statutes has corrected a manifest clerical or
typographical error in subsection (1)(g)2. of this statute during codification. The
meaning of the text was not changed.
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