KRS § 268.370 — KY Code / Title XXII / Chapter 268 / Section 268.370
268.370 Board may issue bonds -- Terms -- Use of proceeds -- Duties of treasurer -- Bond -- Duties of county clerk -- Warrants for payment
Status: in_force

268.370 Board may issue bonds -- Terms -- Use of proceeds -- Duties of treasurer --

Bond -- Duties of county clerk -- Warrants for payment.

(1) The board of drainage commissioners may, if in their judgment it seems best, issue

bonds on behalf of any district under their control, not to exceed ninety percent

(90%) of the total amount of the minimum district assessments levied upon the

property of the district approved by the county judge/executive. The bonds shall be

in denominations of not less than one hundred dollars ($100), bearing interest

payable at least annually from the date of issue, to mature at annual or more

frequent intervals within thirty (30) years, commencing after a period of years not

later than five (5) years, to be determined by the board. Both principal and interest

shall be payable at some convenient bank or trust company's office, to be named in

the bonds. The bonds shall be signed by the president of the board, attested with the

seal of the board, and the signature of the secretary and countersigned by the county

clerk of the county in which the district is organized. All bonds shall be executed

and delivered to the treasurer of the district, who shall sell them in quantities and at

dates as the board considers necessary. The funds derived from the sale of bonds

shall be used only to pay the cost of improvements and the expenses, fees, and

salaries authorized by law. The secretary of the board shall certify to the county

clerk in which the district was organized a copy of the resolution authorizing and

directing the issuance of the bonds, which shall contain a list of the bonds, their

dates of maturity, and amounts. The clerk shall record this resolution in the lis

pendens record in his office. The bonds shall show on their face the purpose for

which they are issued.

(2) The bonds shall be payable out of money derived from the assessments upon

property, and a sufficient amount of the drainage assessment shall be appropriated

by the board to pay the principal and interest. This sum shall be preserved in a

separate fund for that purpose. All bonds and coupons not paid at maturity shall

bear interest from maturity until paid, or until sufficient funds for their payment

have been deposited at the place of payment, and this interest shall be appropriated

by the board out of the penalties and interest collected on assessments or any other

available funds of the district. The board, in making the annual levy of assessments,

shall take into account the maturing bonds and interest on all bonds and make

ample provisions in advance for their payment. If the proceeds of the original levy

of assessments are not sufficient to pay the principal and interest of all bonds

issued, the board shall make any additional levy upon benefits assessed necessary

for this purpose. However, no levy of assessments shall be made in excess of the

benefits to the property as shown by the report of the appraisers, as corrected, that

will in any manner impair the security of bonds or the fund available for the

payment of the principal or interest.

(3) When he receives the bonds the treasurer shall execute and deliver to the president

of the board a bond with good and sufficient sureties, to be approved by the board,

conditioned that he shall account for and pay over as required by law and as ordered

to do by the board all money received by him on the sale of any bonds, and that he

will only sell and deliver the bonds to the purchaser of the bonds according to the

terms of this section, and that he will return, duly canceled, any bonds not sold to

the board when ordered by it to do so. This bond shall remain in the custody of the

president of the board, who shall produce it for inspection or as evidence whenever

legally required to do so. The bond of the treasurer may, if the board directs, be

signed by a surety or bonding company, which may be approved by the board. The

successor in office of any treasurer shall comply with all provisions applicable to

his predecessor before receiving bonds or their proceeds. The treasurer shall

promptly report all sales of bonds to the board.

(4) The board shall, at reasonable times, prepare and issue warrants for the payment of

the maturing bonds sold and the interest payments coming due on all bonds sold.

Each warrant shall specify what bonds and accruing interest it is to pay, and the

treasurer shall place sufficient funds at the place of payment to pay the maturing

bonds and coupons when due, as well as a reasonable compensation to the bank or

trust company for paying them, not to exceed two dollars and fifty cents ($2.50) for

each one thousand dollars ($1,000) par value of bonds or coupons paid.