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224A.100 Assistance agreements -- Contents -- Review by legislative committee.
The authority may enter into assistance agreements with governmental agencies, and
governmental agencies may enter into assistance agreements with the authority in
connection with infrastructure projects. Each assistance agreement shall be subject to
review by the Capital Projects and Bond Oversight Committee of the Legislative
Research Commission and may contain and include such provisions as may be agreed
upon by the parties thereto, and shall include and prescribe the following provisions:
(1) An estimate of the reasonable cost of the infrastructure project, as determined by the
authority;
(2) The amount of the total rentals under any lease of an infrastructure project, loans or
grants to be made to the governmental agency, financing payments, or obligations
of the governmental agency to be purchased by the authority;
(3) The time or times at which the rentals, loans or grants, financing payments, or the
purchase price of a governmental agency shall become payable by or to the
governmental agency;
(4) The specific purpose or purposes for which the leased infrastructure project will be
used or the proceeds of the purchase of obligations of the governmental agency or
loan or grant made pursuant to the assistance agreement shall be expended;
(5) The conditions under which the leased infrastructure project will be used or the
proceeds of the purchase of obligations of the governmental agency or loan or grant
may be expended on account of the infrastructure project by the governmental
agency;
(6) An agreement by the governmental agency:
(a) To proceed expeditiously with and promptly complete the infrastructure
project or cause same to be completed in accordance with plans and
specifications approved by federal and state regulatory agencies;
(b) To commence or cause to be commenced operation of the infrastructure
project on completion of construction, and not to discontinue operations or
dispose of such infrastructure project without the approval of the authority;
(c) To operate and maintain or cause to be operated and maintained the
infrastructure project in accordance with the applicable provisions of federal
and state law;
(d) To disclose fully to the authority all applications for or award of grants or
loans for financial assistance, if any;
(e) To provide for the payment of the governmental agency's share of the cost of
the infrastructure project, if the entire infrastructure project is not financed by
assistance from the authority and describe with specificity the manner in
which the governmental agency proposes to finance its share of such cost, if
any;
(7) A provision that, if assistance which was not included in the calculation of the loan
or grant payable pursuant to subsection (2) of this section becomes available to the
governmental agency, the amount of the assistance from the authority shall be
recalculated with the inclusion of the additional assistance, and the governmental
agency shall pay to the authority the amount, if any, by which the loan or grant
actually made, exceeds the loan or grant as determined by the recalculation;
(8) The extent to which the assistance from the authority shall be repaid to the
authority, which shall not be less than the sum of the following, except as provided
under KRS 224A.111, 224A.112, and 224A.1115:
(a) The aggregate principal amount of the loan; and
(b) Interest on the aggregate balance of the principal amount of the loan from time
to time remaining unpaid, computed at the applicable interest rate, plus not to
exceed one-quarter of one percent (0.25%), except as provided for in KRS
224A.111, 224A.112, and 224A.1115;
(9) The time or times and amounts when the repayments required by subsection (8) of
this section shall be made by the governmental agency to the authority;
(10) The extent to which a service charge shall be imposed by the governmental agency.
Any service charge shall be calculated to produce amounts sufficient to meet the
repayment schedule prescribed by subsection (8) of this section; and
(11) An agreement between the governmental agency and the authority that upon any
failure of the governmental agency to make payment to the authority in accordance
with the time schedule and repayment schedule fixed by the assistance agreement of
the amounts prescribed by said schedules, that in such event the authority may,
without further action, require the State Treasurer to pay to the authority such
amount of other state revenues, tax sharing, or other state aid, with the exception of
funds in aid to education and funds derived from motor fuel taxes or vehicle license
taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental
agency may thereafter become entitled to receive from the state, until all delinquent
payments pursuant to the repayment schedule, plus interest thereon, from the date of
each delinquency at the applicable interest rate per annum, shall have been paid.
Effective: July 15, 2002
History: Amended 2002 Ky. Acts ch. 342, sec. 16, effective July 15, 2002. -- Amended
2000 Ky. Acts ch. 529, sec. 18, effective July 14, 2000. -- Amended 1994 Ky. Acts
ch. 373, sec. 6, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 105, sec. 56,
effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 124, sec. 9, effective March
31, 1988. -- Amended 1974 Ky. Acts ch. 336, sec. 5. -- Created 1972 Ky. Acts ch.
329, sec. 10.
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