KRS § 45A.850 — KY Code / Title VI / Chapter 45A / Section 45A.850
45A.850 Selection of underwriter and bond counsel for various agencies -- Comanaging underwriters -- Review by Capital Projects and Bond Oversight Committee
Status: in_force

45A.850 Selection of underwriter and bond counsel for various agencies --

Comanaging underwriters -- Review by Capital Projects and Bond Oversight

Committee.

(1) (a) Pursuant to KRS 45A.853 and 45A.857, one (1) or more underwriters and one

(1) or more bond counsel firms shall be chosen for each of the following

agencies:

1. Turnpike Authority of Kentucky;

2. Kentucky Housing Corporation;

3. Kentucky Infrastructure Authority;

4. Kentucky Higher Education Student Loan Corporation;

5. Kentucky River Authority;

6. Kentucky Agricultural Finance Corporation;

7. Kentucky Local Correctional Facilities Construction Authority;

8. State Property and Buildings Commission; and

9. Kentucky Public Transportation Infrastructure Authority.

(b) The underwriter and the bond counsel chosen for each agency shall provide

their services for all bond issuances over a period of twelve (12) months from

their selection. At the conclusion of the twelve (12) month period, the

executive director may continue the employment of the underwriter or the

bond counsel, on the same terms and conditions, for another twelve (12)

month period. If the employment is not continued, the choosing of an

underwriter or bond counsel, as appropriate, shall be conducted pursuant to

KRS 45A.853 and 45A.857.

(2) (a) Pursuant to KRS 45A.853 and 45A.857, one (1) or more underwriters and one

(1) or more bond counsel firms shall be chosen to provide their services for all

of the following agencies:

1. School Facilities Construction Commission;

2. Murray State University;

3. Western Kentucky University;

4. University of Louisville when it declines to exercise the authority

granted under KRS 164A.585(1) and 164A.605;

5. Northern Kentucky University;

6. Kentucky State University;

7. University of Kentucky when it declines to exercise the authority

granted under KRS 164A.585(1) and 164A.605;

8. Morehead State University;

9. Eastern Kentucky University; and

10. Kentucky Community and Technical College System.

(b) The underwriter and the bond counsel chosen for all of the agencies shall

provide their services for all bond issuances of the agencies for a period of

twelve (12) months from the underwriter's and the bond counsel's selection.

At the conclusion of the twelve (12) month period, the executive director may

continue the employment of the underwriter or the bond counsel, on the same

terms and conditions, for another twelve (12) month period. If the

employment is not continued, the choosing of an underwriter or bond counsel,

as appropriate, shall be conducted pursuant to KRS 45A.853 and 45A.857.

(3) Pursuant to KRS 45A.853 and 45A.857, one (1) or more financial advisors,

managing underwriters, and remarketing agents and one (1) bond counsel shall be

chosen for the Kentucky Asset/Liability Commission. The commission shall enter

into agreements with the individuals or entities for a maximum contract period of

twenty-four (24) months. At the conclusion of the contract period, the executive

director may continue the employment of the financial advisor, underwriter,

remarketing agent, or bond counsel for another contract period, not to exceed

twenty-four (24) months. If the employment is not continued or terminated, the

selection of a financial advisor, underwriter, remarketing agent, or bond counsel, as

appropriate, shall be conducted pursuant to KRS 45A.853 and 45A.857.

(4) The office may select national comanaging underwriters and Kentucky comanaging

underwriters who shall provide national and local marketing expertise for bond

issuances. The executive director shall recommend to the secretary of the Finance

and Administration Cabinet the number of national and Kentucky comanaging

underwriters, if any, to be utilized on each bond issuance. The executive director

shall consider the following issues when making the recommendations:

(a) Principal amount of bonds being issued;

(b) Structure of the bond issue; and

(c) Composition of expected buyers of the bonds.

Kentucky comanaging underwriters shall be selected pursuant to a request for

proposals. National comanaging underwriters shall be selected pursuant to an

administrative regulation promulgated by the office. For specific bond transactions

under subsection (1) of this section, the executive director may recommend to the

secretary of the Finance and Administration Cabinet as a managing underwriter the

Kentucky underwriter which received the highest score for its proposal pursuant to

this section. Comanaging underwriters selected pursuant to this subsection shall

provide their services to a bond issuing agency as needed over the appropriate

period of time stated in this section.

(5) If the executive director recommends to the secretary of the Finance and

Administration Cabinet a Kentucky underwriter as provided by subsection (4) of

this section, and the secretary orders that procurement proceed pursuant to KRS

45A.857, the requirements, review, and recommendation of the Capital Projects and

Bond Oversight Committee as provided by KRS 45.810 shall apply.