KRS § 224A.100 — KY Code / Title XVIII / Chapter 224A / Section 224A.100
224A.100 Assistance agreements -- Contents -- Review by legislative committee
Status: in_force

224A.100 Assistance agreements -- Contents -- Review by legislative committee.

The authority may enter into assistance agreements with governmental agencies, and

governmental agencies may enter into assistance agreements with the authority in

connection with infrastructure projects. Each assistance agreement shall be subject to

review by the Capital Projects and Bond Oversight Committee of the Legislative

Research Commission and may contain and include such provisions as may be agreed

upon by the parties thereto, and shall include and prescribe the following provisions:

(1) An estimate of the reasonable cost of the infrastructure project, as determined by the

authority;

(2) The amount of the total rentals under any lease of an infrastructure project, loans or

grants to be made to the governmental agency, financing payments, or obligations

of the governmental agency to be purchased by the authority;

(3) The time or times at which the rentals, loans or grants, financing payments, or the

purchase price of a governmental agency shall become payable by or to the

governmental agency;

(4) The specific purpose or purposes for which the leased infrastructure project will be

used or the proceeds of the purchase of obligations of the governmental agency or

loan or grant made pursuant to the assistance agreement shall be expended;

(5) The conditions under which the leased infrastructure project will be used or the

proceeds of the purchase of obligations of the governmental agency or loan or grant

may be expended on account of the infrastructure project by the governmental

agency;

(6) An agreement by the governmental agency:

(a) To proceed expeditiously with and promptly complete the infrastructure

project or cause same to be completed in accordance with plans and

specifications approved by federal and state regulatory agencies;

(b) To commence or cause to be commenced operation of the infrastructure

project on completion of construction, and not to discontinue operations or

dispose of such infrastructure project without the approval of the authority;

(c) To operate and maintain or cause to be operated and maintained the

infrastructure project in accordance with the applicable provisions of federal

and state law;

(d) To disclose fully to the authority all applications for or award of grants or

loans for financial assistance, if any;

(e) To provide for the payment of the governmental agency's share of the cost of

the infrastructure project, if the entire infrastructure project is not financed by

assistance from the authority and describe with specificity the manner in

which the governmental agency proposes to finance its share of such cost, if

any;

(7) A provision that, if assistance which was not included in the calculation of the loan

or grant payable pursuant to subsection (2) of this section becomes available to the

governmental agency, the amount of the assistance from the authority shall be

recalculated with the inclusion of the additional assistance, and the governmental

agency shall pay to the authority the amount, if any, by which the loan or grant

actually made, exceeds the loan or grant as determined by the recalculation;

(8) The extent to which the assistance from the authority shall be repaid to the

authority, which shall not be less than the sum of the following, except as provided

under KRS 224A.111, 224A.112, and 224A.1115:

(a) The aggregate principal amount of the loan; and

(b) Interest on the aggregate balance of the principal amount of the loan from time

to time remaining unpaid, computed at the applicable interest rate, plus not to

exceed one-quarter of one percent (0.25%), except as provided for in KRS

224A.111, 224A.112, and 224A.1115;

(9) The time or times and amounts when the repayments required by subsection (8) of

this section shall be made by the governmental agency to the authority;

(10) The extent to which a service charge shall be imposed by the governmental agency.

Any service charge shall be calculated to produce amounts sufficient to meet the

repayment schedule prescribed by subsection (8) of this section; and

(11) An agreement between the governmental agency and the authority that upon any

failure of the governmental agency to make payment to the authority in accordance

with the time schedule and repayment schedule fixed by the assistance agreement of

the amounts prescribed by said schedules, that in such event the authority may,

without further action, require the State Treasurer to pay to the authority such

amount of other state revenues, tax sharing, or other state aid, with the exception of

funds in aid to education and funds derived from motor fuel taxes or vehicle license

taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental

agency may thereafter become entitled to receive from the state, until all delinquent

payments pursuant to the repayment schedule, plus interest thereon, from the date of

each delinquency at the applicable interest rate per annum, shall have been paid.