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58.155 Grant anticipation notes.
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In the case of any public work or public project, in connection with which the
Commonwealth of Kentucky, or any department, agency or bureau thereof, or
any political subdivision or governmental unit of the Commonwealth of
Kentucky ("governmental agency") has applied for and received federal
grants-in-aid or is entitled as a matter of law to receipt of federal grants-in-aid
which may be applied for the purpose of providing a portion of or all of the
funds required for construction and installation of any such public work or
public project, such governmental agency may authorize and issue grant
anticipation notes payable from grant proceeds when received, and any other
assets which may be lawfully pledged by any such governmental agency and
which are so pledged.
Any grant anticipation notes issued pursuant to authority of this section shall be
scheduled to mature at such time or times, not to exceed three (3) years from
the date of issuance thereof, and shall bear such rate or rates of interest as the
governing body of the governmental agency shall determine. Grant anticipation
notes may be sold at public sale or pursuant to private, negotiated sale at the
election of the governing body of the governmental agency issuing any such
grant anticipation notes. Interest on any such grant anticipation notes may be
capitalized in grant anticipation note issues for periods not exceeding three (3)
years.
Grant anticipation notes issued pursuant to the authority of this section shall be
payable as to principal and interest, if interest is capitalized, from the federal
grants in anticipation of which the grant anticipation notes are authorized and
issued, and any governmental agency is authorized and empowered to pledge
such grant proceeds when received, either as sole security for the repayment
of grant anticipation notes, or together with any other assets and revenues of
such governmental agency which may be lawfully pledged for such repayment.
Grant anticipation notes issued pursuant to the authority of this section are
hereby declared to be issued for public, governmental purposes and the
interest derived thereon shall be exempt from taxation by the Commonwealth
and by all political subdivisions of the Commonwealth. Grant anticipation notes
shall also be exempt from ad valorem taxation by the Commonwealth or any
political subdivision thereof.
Effective:April 9, 1980
History: Created 1980 Ky. Acts ch. 273, sec. 1, effective April 9, 1980.
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