KRS § 247.946 — KY Code / Title XXI / Chapter 247 / Section 247.946
247.946 Powers of corporation
Status: in_force

247.946 Powers of corporation.

The corporation shall have all of the powers necessary or convenient to carry out and

effectuate the purposes and provisions of KRS 247.940 to 247.978 including, but without

limiting the generality of the foregoing, the power:

(1) To adopt bylaws for the regulation of its affairs and the conduct of its business and

to prescribe rules, administrative regulations, and policies in connection with the

performance of its functions and duties;

(2) To review the projects authorized to be financed by KRS 247.940 to 247.978 in

order to determine the following:

(a) The qualifications of the applicant as a party entitled to financing assistance

under the provisions of KRS 247.940 to 247.978 and the rules and

administrative regulations of the corporation;

(b) The qualifications of the applicant in the areas of experience, training, and

financial ability in relation to the project for which assistance is sought and

any other areas as the corporation shall determine necessary and desirable in

implementing the intent of KRS 247.940 to 247.978 in the promotion of

agriculture throughout the Commonwealth. Analysis shall include a careful

evaluation of character, experience, record, and prospects for sound financial

management and sound operation of the project. Financial ability factors to be

considered shall include the applicant's total assets controlled, equity owned,

contingent liabilities, history of earnings to date, and repayment capacity, as

well as other factors set by the corporation. Consideration may be given to the

special needs of beginning farmers;

(c) The economic need for the project in the area based upon general economic

conditions and unemployment in the region;

(d) The economic soundness of the project based upon generally accepted cost-

benefit methodology; and

(e) Consistency of the project with other policies of the Commonwealth designed

to ensure a sustained land base for agriculture including preservation of prime

farmland and promotion of soil conservation techniques for protection of

farmland;

(3) To issue from time to time bonds, notes, bond anticipation notes, renewal notes,

refunding bonds, interim certificates, certificates of indebtedness, debentures,

warrants, commercial paper, or other obligations or evidence of indebtedness,

hereinafter collectively referred to as "bonds" or "notes," to provide funds for and to

fulfill and achieve its authorized public functions or corporate purposes, as set forth

in the provisions of KRS 247.940 to 247.978; and in addition to the powers

conferred hereunder, to have all the authority delegated to cities and counties

pursuant to the provisions of KRS 103.200 to 103.285; provided, however, that

bonds or notes issued by the corporation shall not be subject to the jurisdiction or

approval of the Industrial Revenue Bond Oversight Committee or the State Property

and Buildings Commission but shall be subject to the review of the Office of

Financial Management in the Office of the Controller within the Finance and

Administration Cabinet;

(4) To make or participate in the making of insured mortgage loans to qualified

applicants for the purpose of purchasing agricultural real estate and improvements;

(5) To purchase or participate in the purchase of mortgage loans made to qualified

applicants for the purpose of purchasing agricultural real estate and improvements;

(6) To make or participate in the making of loans to qualified applicants for the purpose

of purchasing machinery, equipment, and livestock;

(7) To purchase or participate in the purchase of loans to qualified applicants for the

purpose of purchasing machinery, equipment, and livestock;

(8) To make or participate in the making or to purchase or participate in the purchase of

loans to qualified applicants for the purpose of leasing equipment, introducing new

agricultural commodities or enhancing agricultural markets;

(9) To collect and pay reasonable fees and charges in connection with making,

purchasing, and servicing its loans, notes, bonds, commitments, and other evidences

of indebtedness;

(10) To acquire real and personal property, or any interest therein, by purchase,

foreclosure, lease, sublease, or otherwise; to own, manage, and operate real and

personal property; to sell, assign, exchange, transfer, convey, lease, mortgage, or

otherwise dispose of or encumber real and personal property where necessary or

appropriate to the purposes of the corporation subject to the rights of holders of the

bonds of the corporation, at public or private sale, with or without public bidding;

(11) To sell, at public or private sale, all or any part of any real estate mortgage or chattel

mortgage or other instrument or document securing any loan permitted by KRS

247.940 to 247.978;

(12) To procure insurance against any loss in connection with its operations in the

amounts and from any insurers, as it may deem necessary or desirable;

(13) To consent, whenever the corporation deems necessary or desirable in the

fulfillment of its corporate purposes, to the modification of interest rates, time of

payment of principal or interest, or any other terms of any loan, contract, or

agreement of any kind to which the corporation is a party;

(14) To include in any borrowing those amounts deemed necessary by the corporation to

pay financing charges, capitalized interest, consultant, advisory, and legal fees and

any other expenses necessary or incident to any borrowing;

(15) To make and publish administrative regulations respecting its lending programs and

any other rules and regulations as are necessary to effectuate its corporate purposes;

(16) To make, execute, and effectuate any and all agreements or other documents with

any governmental agency or any person, corporation, association, partnership, or

other organization or entity, necessary to accomplish the purposes of KRS 247.940

to 247.978;

(17) To accept gifts, devises, bequests, grants, loans, appropriations, and other assistance

and any other aid from any source whatsoever and to agree to and to comply with

conditions attached thereto;

(18) To sue and be sued in its own name and in the name of any subsidiary corporation

or entity which may be created pursuant to subsection (28) of this section;

(19) To maintain an office in the city of Frankfort and at any other place or places as it

may determine;

(20) To employ fiscal consultants, engineers, attorneys, appraisers, and such other agents

and employees as may be required in the judgment of the corporation and to fix and

pay their compensation from funds available to the corporation therefor;

(21) To invest any funds held in sinking funds, reserve funds, or trust fund accounts or

any moneys not required for immediate disbursement by the corporation in:

(a) Obligations of or guaranteed by the Commonwealth, United States of America

or their respective agencies and instrumentalities;

(b) Certificates of deposit and other evidences of deposit at state and federal

chartered banks and savings and loan associations, fully collateralized as to

any principal amount in excess of the amount insured by the United States

government or any agency thereof;

(c) A guaranteed investment or similar contract, which provides for the

investment of funds at a guaranteed rate of return, with an insurance company

or depository financial institution with a claim paying rating of no less than

either of the two (2) highest grades given by a nationally recognized rating

agency; and

(d) Any other investment authorized by law for the investment of funds of the

Commonwealth;

(22) Subject to the rights of holders of bonds of the corporation, to renegotiate,

refinance, or foreclose on any mortgage, security interest, or lien; or commence any

action to protect or enforce any right or benefit conferred upon the corporation by

any law, mortgage, security interest, lien, contract, or other agreement; and bid for

and purchase property at any foreclosure or at any other sale or otherwise acquire or

take possession of any property; and in any such event, the corporation may

complete, administer, pay the principal of and interest on any obligation incurred in

connection with the property, dispose of and otherwise deal with the property in any

manner as may be necessary or desirable to protect the interest of the corporation or

of holders of its bonds therein;

(23) To insure, coinsure, reinsure, or cause to be insured, coinsured or reinsured,

agricultural loans, mortgage loans, or mortgages, or any other type of loans, and pay

or receive premiums on insurance, coinsurance, or reinsurance, and establish

reserves for losses, and participate in the insurance, coinsurance, or reinsurance of

agricultural loans, mortgage loans or mortgages, or any other type of loans with the

federal or state government or any private insurance company;

(24) To undertake and carry out or authorize the completion of studies and analyses of

agricultural conditions and needs within the Commonwealth and needs relating to

the promotion of agricultural exports and ways of meeting the needs, and make the

studies and analyses available to the public and to the agricultural industry, and to

engage in research or disseminate information on agriculture and agricultural

exports;

(25) To accept federal, state, or private financial or technical assistance and comply with

any conditions for assistance, provided that those conditions are not in conflict with

the intent of the provisions of KRS 247.940 to 247.978;

(26) To purchase, discount, sell, negotiate and guarantee, insure, co-insure and reinsure

notes, drafts, checks, bills of exchange, acceptances, bankers' acceptances, cable

transfers, letters of credit, and other evidence of indebtedness;

(27) To serve as the beneficiary of any public trust; and

(28) To create such subsidiary corporations or entities as may be necessary to borrow

money, insure or reinsure agricultural loans, or issue bonds.