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67A.810 Procedure where no bids received on offered bonds.
If the urban-county government shall adopt the Third Ordinance, herein referred to,
and shall publicly solicit the submission of bids or proposals for the purchasing of its
"improvement assessment bonds" for the project identified therein, and shall fail to
receive a bid upon terms of price and/or interest coupon rate, or rates, conforming to
the published notice and acceptable to the governing body, the bonds, or a portion
thereof, may be awarded to the contractor, or contractors, at a price of not less than
the minimum price permitted by the said published notice, and bearing one (1) or
more interest coupon rates not exceeding the rate, or rates, permitted in the said
published notice but only upon the following conditions:
(1) The entire bond issue authorized by the Third Ordinance may be awarded to
the contractor, or contractors, if it or they shall submit to, and obtain formal
approval by, the governing body of the urban-county government, of a written
undertaking (approval as to form and substance by the government's duly
designated legal counsel):
(a) Agreeing to accept in full an agreed payment of the amount, or the
aggregate of the amounts, of their respective contracts, bonds as
authorized by the Third Ordinance equal in principal amount (or as near
thereto as may be practicable) to the amount, or the aggregate of the
amounts of their contracts (in which event such bonds shall be the latest
maturing and highest numbered of the bonds authorized by the Third
Ordinance), and
(b) Agreeing to pay to the urban-county government, in cash, the purchase
price of the bonds to the extent that the same exceeds the aggregate
amount of the contracts of the contractor, or contractors, who are
signatories of such written instrument; or
(2) Bonds equal to the amount, or amounts, of the contracts of the contractor, or
contractors, who are signatories of a written instrument agreeing to accept the
same in payment thereof, approved as to form and substance by the
urban-county government's properly designated legal counsel, may be
awarded to such contractor, or contractors, in the event the urban-county
government is able to, and does, (within constitutional restrictions) appropriate
from available funds a sum in cash sufficient to defray all costs of the project,
as defined in KRS 67A.710 to 67A.825, in excess of the amount of such
construction contract, or the aggregate of the several contracts. In such event,
the sum so appropriated by the governing body of the urban-county
government shall be applied to the payment of such costs;
(3) In the event of procedure as set forth in either subsection (1) or (2) of this
section, the bonds awarded to the contractor, or contractors (other than those
paid for in cash as set forth in the foregoing subsection (1)), shall be placed by
the urban-county government, in escrow, with a responsible financial
institution, with written instructions that the same may be released to the
contractor, or contractors, from time to time, but in principal amount not
exceeding seventy-five percent (75%) of the amount certified in writing by the
engineer, or engineers, to the said escrow agent, and the urban-county
government, to have been theretofore earned by and payable to the identified
contractor, or contractors, under the terms and conditions of their respective
contracts. Upon final approval and acceptance of the project by the governing
body, the reserved twenty-five percent (25%) of such bonds may be released
and delivered to such contractor, or contractors.
Effective:June 21, 1974
History: Created 1974 Ky. Acts ch. 394, sec. 21, effective June 21, 1974.
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