KRS § 220.577 — KY Code / Title XVIII / Chapter 220 / Section 220.577
220.577 Revenue bonds of construction subdistrict -- Procedure -- Contents
Status: in_force

220.577 Revenue bonds of construction subdistrict -- Procedure -- Contents.

(1) The district is authorized and empowered to issue negotiable, interest bearing,

construction subdistrict bonds which shall not be an obligation of the district;

construction subdistrict revenue bonds shall be secured solely by the revenues

pledged by KRS 220.593 and by moneys, if any, in the construction subdistrict

reserve fund authorized by KRS 220.593. Construction subdistrict bonds can be

issued to obtain funds for the building, installation, or acquisition of construction

subdistrict facilities or for refunding construction subdistrict bonds of the same

construction subdistrict. Notwithstanding the foregoing two (2) sentences

construction subdistrict bonds can be served by assessments.

(2) Construction subdistrict bonds shall be authorized by resolution of the board, shall

bear a date or dates, shall mature at a time or times, not exceeding forty (40) years

from their respective dates, bear interest at a rate or rates or method of determining

rates, be payable annually or more often, be in a form, wholly registered, registered

as to principal with bearer coupon, or bearer with coupon, carry the registration

privileges, be executed in a manner, be payable in a manner, be payable in a

medium of payment at a place or places, and be subject to the terms of redemption,

with or without premium, as the resolution or resolutions may require. Construction

subdistrict bonds shall be sold at public sale for a price or prices as the board

determines.

(3) Any resolution or resolutions authorizing any bonds pursuant to this section may

contain provisions, which shall be a part of the contract with the holders of the

bonds, concerning:

(a) A pledge of or a security interest in the revenue derived from the construction

subdistrict;

(b) The amounts to be raised in each year by rates, rentals, and charges, and their

use and disposition;

(c) The setting aside of reserves or sinking funds and their regulation and

disposition;

(d) Limitations on the right of the district to restrict and regulate the use of the

subdistrict facilities;

(e) Limitations on the purposes to which the proceeds of sale of any issue of

bonds to be issued with respect to the same construction subdistrict may be

applied;

(f) Limitations on the issuance of additional bonds for the same construction

subdistrict; and

(g) The procedure, if any, by which the term of any contract with bondholders

may be amended or be abrogated, and amount of the bonds the holders of

which must give consent thereto, and the manner in which consent may be

given.

(4) Construction subdistrict bonds shall not constitute an obligation or indebtedness of

the district or of any city or county, and it shall be stated plainly on the face of each

construction subdistrict bond that it has been issued under the provisions of KRS

220.553 to 220.613 and that it does not constitute an obligation or indebtedness of

the district or any city or county. All construction subdistrict bonds issued may be

issued without vote of the voters and without any other proceedings or happenings

of any other condition or things than those proceedings, conditions, and things

which are specified and required by KRS 220.553 to 220.613. Construction

subdistrict bonds shall be signed in the name of the district by the chairman or vice

chairman of the board, attested by the signature of the secretary-treasurer, with

corporate seal of the district attached. The bonds may also be executed pursuant to

KRS 61.390.