2014 Kentucky Revised Statutes CHAPTER 56 - STATE LANDS AND BUILDINGS 56.868 Funding notes -- Purposes -- Sale and issuance -- Approval -- Status of notes with respect to the Commonwealth and its political subdivisions.
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56.868 Funding notes -- Purposes -- Sale and issuance -- Approval -- Status
of notes with respect to the Commonwealth and its political subdivisions.
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The commission may issue and sell funding notes for the purposes of funding
judgments against the Commonwealth or any state agency and financing or
refinancing obligations owed under KRS 161.550(2) or 161.553(2). Funding
notes may be sold and issued in a manner and have terms relating to the
payment of interest, principal, and premiums or discounts as market conditions
warrant.
Appropriations requests for payment of principal and interest on funding notes
shall be made by the state agency against which a judgment has been
rendered or, in the case of financing or refinancing obligations owed under
KRS 161.550(2) or 161.553(2), to the Kentucky Teachers' Retirement System.
Funding notes, together with interest thereon, shall be repaid from payments
received by the commission from the cabinet under a financing agreement.
Funding notes may be issued for the following purposes:
(a) To pay for judgments, which shall include legal settlements, court-ordered
actions against the Commonwealth or any state agency, and any part of
any expense or cost incidental to legal settlements or court-ordered
actions against the Commonwealth or any state agency;
(b) To finance or refinance obligations owed under KRS 161.550(2) or
161.553(2); and
(c) To refund outstanding issues of funding notes.
The issuance of funding notes shall be subject to KRS 56.870, to approval by
the State Property and Buildings Commission, and to review by the Capital
Projects and Bond Oversight Committee pursuant to KRS 45.810.
The cabinet, in providing for the expenditure of funds for any of the purposes
mentioned in this section, may provide by a financing agreement with the state
agency so affected for the funding of the Commonwealths or that state
agencys judgment, and the state agency so affected is authorized to enter
into a financing agreement with the cabinet for that purpose.
Funding notes shall not constitute a debt of the Commonwealth or any political
subdivision thereof or a pledge of the faith and credit of the Commonwealth or
any political subdivision, but the notes shall be payable solely from payments
received under the financing agreement relating to the funding notes.
Effective:April 26, 2010
History: Amended 2010 Ky. Acts ch. 172, sec. 2, effective April 26, 2010. -Created 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 10, effective May 30, 1997.
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