KRS § 56.8605 — KY Code / Title VII / Chapter 56 / Section 56.8605
56.8605 Definitions for KRS 56.860 to 56.869
Status: in_force

56.8605 Definitions for KRS 56.860 to 56.869.

As used in KRS 56.860 to 56.869:

(1) "Authorized project" means:

(a) Any project approved by the General Assembly and included in an enacted

budget; or

(b) Any project approved by the General Assembly that is certified by the

secretary of the Finance and Administration Cabinet in accordance with the

provisions of KRS 56.870, to be of a type that will independently produce

revenues or will be payable from receipts of federal transportation funds that

are projected by the commission to be sufficient to fully meet debt service,

issuance costs, reserve fund requirements, insurance premiums, or any other

expenditures necessary for financing so that no appropriation of state funds is

required;

(2) "Cabinet" means the Finance and Administration Cabinet;

(3) "Commercial paper" means obligations that by their terms mature not more than

three hundred sixty-six (366) days from the date of their issuance and that may be

refunded;

(4) "Commission" means the Kentucky Asset/Liability Commission;

(5) "Estimated revenues" means the official revenue estimates established pursuant to

KRS 48.120 on or before the dates on which tax and revenue anticipation notes are

awarded to the purchaser;

(6) "Financial agreements" means interest rate swaps, options, or other agreements

between two (2) parties to exchange or have the conditional right to exchange

interest rate exposure from fixed rate to variable rate or from variable rate to fixed

rate, or to provide other economic benefit to an issuance of notes or a portfolio of

notes, or to hedge the net interest margin of the Commonwealth;

(7) "Financing agreement" means an agreement between the commission and the

cabinet, or between the cabinet and a state agency, relating to the funding of

projects or items associated with projects as described in KRS 56.867(3), a

judgment against a state agency or the Commonwealth, or the finance or refinance

of obligations owed under KRS 161.550(2). The provisions of a financing

agreement shall require either the cabinet to make payments to the commission

relating to the commission's issuance of notes, or the state agency to make

payments to the cabinet reimbursing the cabinet for its payments to the commission

on the agency's behalf. The obligations of the cabinet or the state agency under a

financing agreement shall be contingent upon appropriations by the General

Assembly to the cabinet or to the agency for the payment of those obligations;

(8) "Fixed-rate obligations" means obligations on which the interest rate remains

constant to maturity;

(9) "Funding notes" means notes issued under the provisions of KRS 56.860 to 56.869

by the commission for the purpose of funding:

(a) Judgments, with a final maturity of not more than ten (10) years; and

(b) The finance or refinance of obligations owed under KRS 161.550(2);

(10) "Interest-sensitive assets" means tangible and intangible property held by the

Commonwealth whose market value is dependent upon the level of interest rates;

(11) "Interest-sensitive liabilities" means interest-bearing debts or other obligations of

the Commonwealth or a state agency;

(12) "Multimodal obligations" means obligations for which the time period for

establishing the rate of interest may be selectively determined and altered;

(13) "Net interest margin" means the net income or expense associated with the

difference between the Commonwealth's interest-sensitive assets and interest-

sensitive liabilities;

(14) "Project notes" means notes issued under the provisions of KRS 56.860 to 56.869

by the commission with a final maturity of not more than twenty (20) years for the

purpose of funding authorized projects, which may include bond anticipation notes;

(15) "State agency" means any state administrative body, agency, department, or

division as defined in KRS 42.005, and set out in KRS Chapter 12, or any board,

commission, institution, state university, or division exercising any function of the

Commonwealth;

(16) "Tax and revenue anticipation notes" means notes that are issued under the

provisions of KRS 56.860 to 56.869 by the commission with a final maturity that is

no later than the last day of the fiscal year during which the tax and revenue

anticipation notes are issued and that are issued in anticipation of estimated

revenues to be received in that fiscal year; and

(17) "Variable-rate demand obligations" means obligations on which the rate of interest

is set by reference to a predetermined index or formula, by auction, by an agent

that, in the sole judgment of the commission, has the financial expertise to establish

market interest rates, or by similar means.