KRS § 164A.080 — KY Code / Title XIII / Chapter 164A / Section 164A.080
164A.080 Bond issue -- Amount -- Interest -- Use of proceeds -- Approval of General Assembly required for certain bond or note issuances -- Exception
Status: in_force

164A.080 Bond issue -- Amount -- Interest -- Use of proceeds -- Approval of

General Assembly required for certain bond or note issuances -- Exception.

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

of not exceeding five billion dollars ($5,000,000,000) in bonds of the corporation to

carry out and effectuate its corporate purposes and powers. In anticipation of the

issuance of bonds, the corporation may provide for the issuance, at one (1) time or

from time to time, of bond anticipation notes. The principal of and the interest on

bonds or notes shall be payable solely from the funds provided for payment. Any

notes may be made payable from the proceeds of bonds or renewal notes or, if bond

or renewal note proceeds are not available, notes may be paid from any available

revenues or assets of the corporation. The bonds or notes of each issue shall be

dated and may be made redeemable before maturity at the option of the corporation

at the price or prices and under the terms and conditions determined by the

corporation. Any bonds or notes shall bear interest at a rate or rates determined by

the corporation. Notes shall mature at a time or times not exceeding five (5) years

from their date or dates and bonds shall mature at a time or times not exceeding

thirty (30) years from their date or dates, as determined by the corporation. The

corporation shall determine the form and manner of execution of the bonds or notes,

including any interest coupons to be attached, 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. If any officer whose

signature or a facsimile of whose signature appears on any bonds or notes or

coupons attached to them shall cease to be an officer before the delivery of the

bonds or notes, the signature or facsimile shall be valid and sufficient for all

purposes as if he had remained in office until the delivery. The corporation may also

provide for the authentication of the bonds or notes by a trustee or fiscal agent. The

bonds or notes may be issued in coupon or in registered form, or both, as the

corporation may determine, and provision may be made for the registration of any

coupon bonds or notes as to principal alone and also as to both principal and

interest, and for the reconversion into coupon bonds or notes of any bonds or notes

registered as to both principal and interest, and for the interchange of registered and

coupon bonds or notes. Upon the approval of a resolution of the corporation

authorizing the sale of its bonds or notes, the bonds or notes may be sold in a

manner, either at public or private sale, and for a price the corporation shall

determine to be for the best interest of the corporation and best effectuate the

purposes of this chapter if the sale is approved by the corporation.

(2) The proceeds of any bonds or notes shall be used solely for the purposes for which

they are issued and shall be disbursed in a manner and under restrictions, if any, the

corporation may provide in the resolution authorizing the issuance of bonds or notes

or in the trust agreement securing the bonds or notes. The principal of and interest

on any bonds issued by the corporation shall be payable only from the proceeds

derived by the corporation from insured student loans made and purchased from the

proceeds of the bonds.

(3) (a) Prior to the issuance of any bonds or notes that are not secured by the

repayment of student loans at least ninety-five percent (95%) insured by the

guarantee agency and reinsured by the United States of America, the

corporation shall obtain approval of the issuance from the General Assembly

in accordance with the provisions of KRS 56.870(1). This requirement shall

not apply to refunding bond or note issues which are for the purpose of

achieving debt service savings and which do not extend the term of the

refunded bond or note.

(b) Notwithstanding paragraph (a) of this subsection, if during the interim of

sessions of the General Assembly, the federal act is amended to reduce to less

than ninety-five percent (95%) the maximum rate of insurance payable by the

guarantee agency or reinsurance payable by the Secretary of Education of the

United States on insured student loans, upon notification by the corporation to

the Legislative Research Commission of the change in the federal act, the

corporation may, until the adjournment of the next even-numbered-year

regular session of the General Assembly, issue bonds or notes for student

loans insured by the guarantee agency and reinsured by the Secretary of

Education of the United States to the maximum extent permitted by the

federal act.