KRS § 224A.120 — KY Code / Title XVIII / Chapter 224A / Section 224A.120
224A.120 Authority may issue revenue bonds
Status: in_force

224A.120 Authority may issue revenue bonds.

(1) The authority may provide, at one (1) time or from time to time, for the issuance of

its Kentucky Infrastructure Authority revenue bonds, for the purpose of providing

funds and moneys to the authority to enable it to enter into assistance agreements

with governmental agencies, acquire and lease infrastructure projects, to

governmental agencies, purchase or refinance obligations of governmental agencies

issued for infrastructure projects and make loans or grants for infrastructure

projects, and to enable the authority generally to carry out and effectuate its proper

corporate purposes. In anticipation of the issuance of the revenue bonds, the

authority may provide for the issuance at one (1) time, or from time to time, of

revenue bond anticipation notes pursuant to the general laws of the state. The

principal of and the interest on the revenue bonds or notes shall be payable solely

from authority revenues. Any such notes may be made payable from the proceeds of

bonds or renewal notes, or in the event bond or renewal note proceeds are not

available, or should the authority deem it financially practicable to pay the notes

directly from authority revenues, the notes may be paid from any available authority

revenues. Prior to the issuance of the bonds or notes, the authority shall submit any

proposed issue to the Capital Projects and Bond Oversight Committee for its review

and determination in accordance with the provisions of KRS 45.810.

(2) The revenue bonds or notes of the authority shall be dated and may be redeemable

prior to maturity at the option of the authority at prices and under terms and

conditions determined by the authority. Any bonds or notes shall bear interest at the

rate or rates, shall be payable annually or at shorter intervals, and may bear

conversion privileges determined by the authority. Notes shall mature at the time or

times not exceeding five (5) years from their date or dates, and revenue bonds shall

mature at the time or times not exceeding forty (40) years from their date or dates as

may be determined by the authority. The authority shall determine the form and

manner of execution of the bonds or notes, and shall fix the denomination or

denominations and the place or places of payment of principal and interest, which

may be any bank or trust company within or without the state. In case any officer of

the authority whose signature or facsimile of whose signature shall appear on any

revenue bonds or notes, shall cease to be such officer before the delivery thereof,

the signature or the facsimile shall be valid and sufficient for all purposes, the same

as if the officer had remained in office until the delivery. At the time of issuance of

variable rate revenue bonds, the authority may designate individuals or institutions

which, in the sole judgment of the authority, have financial market expertise to

serve as agent for the authority for establishing and changing from time to time,

while the variable rate revenue bonds remain outstanding, the rate of interest to be

borne by and the price to be paid for the revenue bonds. The rate-setting procedures

and authority of each agent shall be set forth in writing, and may include a formula

or an index or indices based upon market factors, and shall be established by the

authority at the time of issuance of the revenue bonds. At the time of the issuance of

the revenue bonds, the authority shall establish the maximum interest rate to be

borne by the revenue bonds. The authority shall retain the right to remove or replace

any agent at any time and for any reason. The authority may provide that said bonds

or notes may be executed only with the facsimile signatures of its officers, but said

bonds or notes shall be executed with the manual signature of a bank or trust

company designated by the authority as registrar and paying agent.

(3) All revenue bonds or notes issued under the provisions of this chapter shall have

and are hereby declared to possess all of the qualities and incidents of negotiable

instruments under the laws of the state. The authority may sell the revenue bonds or

notes in the manner, either at public or private negotiated sale, and for the price, as

it may determine will best effect the purpose of this chapter. If revenue bonds are

sold at public, competitive sale, the revenue bonds shall be sold after newspaper

advertising conforming to the requirements of KRS Chapter 424 and competitive

bids for the sale of the revenue bonds shall be opened and read publicly by the

authority at a designated place, day and hour, all of which shall be announced in the

advertising made relative thereto.

(4) In its proceedings authorizing the issuance of revenue bonds or notes, the authority

shall fix and determine contractual provisions with the bondholders relating to the

receipt, allocation, pledging, and disbursement of authority revenues, and may enact

and determine terms, conditions, and restrictions pursuant to which additional

revenue bonds of the authority may be authorized and issued from time to time. The

proceedings, determinations and enactments of the authority shall specify that the

payment of principal of and interest on such authority revenue bonds and notes shall

constitute a first charge and lien against some or all authority revenues before any

authority revenues are used, applied, and disbursed for any other valid purposes of

the authority, including the payment of operation and maintenance costs incident to

the operation of the authority.

(5) The proceeds of all revenue bonds or notes shall be used solely for the purpose of

enabling the authority to enter into assistance agreements with governmental

agencies, to acquire and lease infrastructure projects to governmental agencies, to

purchase or refinance obligations of governmental agencies issued for infrastructure

projects, to make loans or grants to the governmental agencies for infrastructure

projects, or for any purpose authorized in this chapter. Interest coming due on the

revenue bonds or notes, for not to exceed three (3) years, together with a debt

service reserve equal to two (2) times the maximum principal and interest

requirements to come due during any fiscal year ending June 30, in connection with

the revenue bonds or notes, may be capitalized from bond proceeds, it being

determined and recognized that infrastructure projects, for which loans or grants are

made, may in some cases not become fully revenue-producing for a period of time

coincident with the construction period of the infrastructure projects. Revenue bond

or note proceeds may also be utilized, used and applied for the payment of ordinary

and necessary expenses in connection with issuance of the revenue bonds or notes,

including, but not by way of limitation, a sum equal to any discount in the sale of

revenue bonds or notes, if discount bids are authorized and permitted by the

authority; administrative expenses, including the preparation of revenue bonds or

notes, publication of notices, printing, and other costs; attorneys' fees; and other

ordinary and necessary costs of financing, including the payment of fees to fiscal

agents for advice and assistance in the preparation and marketing of revenue bonds

or notes.

(6) Prior to the preparation of definitive revenue bonds or notes, the authority may,

under like restrictions, issue interim receipts or temporary bonds, exchangeable for

definitive revenue bonds or notes when the revenue bonds or notes shall have been

executed, and are available for delivery. The authority may also provide for the

replacement of any revenue bonds or notes that shall have become mutilated or shall

have been destroyed or lost. Revenue bonds or notes may be issued under the

provisions of this chapter directly by the authority without obtaining the consent or

acquiescence of any cabinet, division, commission, board, department, or agency of

the state other than the Finance and Administration Cabinet, and without any other

proceedings or the happening of any other conditions or things except as

specifically required by this chapter and the provisions of the resolution or

resolutions of the authority authorizing the issuance of the revenue bonds or notes.