KRS § 76.254 — KY Code / Title IX / Chapter 76 / Section 76.254
76.254 Revenue bonds of construction subdistrict -- Procedure -- Contents
Status: in_force

76.254 Revenue bonds of construction subdistrict -- Procedure -- Contents.

(1) The district is authorized and empowered to issue negotiable, interest-bearing,

construction subdistrict bonds which shall not be an obligation of the district;

construction subdistrict revenue bonds shall be secured solely by the revenue

pledged by KRS 76.262 and by moneys, if any, in the construction subdistrict

reserve fund authorized by KRS 76.262. Construction subdistrict bonds can be

issued to obtain funds for the building, installation, or acquisition of construction

subdistrict facilities or for refunding construction subdistrict bonds of the same

construction subdistrict. Notwithstanding the foregoing two sentences, construction

subdistrict bonds can be served by assessments.

(2) Construction subdistrict bonds shall be authorized by resolution of the board, shall

bear a date or dates, shall mature at a time or times, not exceeding forty (40) years

from their respective dates, bear interest at a rate or rates or method of determining

rates, payable at least annually, be in a form, wholly registered, registered as to

principal with bearer coupon, or bearer with coupon, carry registration privileges, be

executed in a manner, be payable in a manner, be payable in a medium of payment

at a place or places, and be subject to the terms of redemption, with or without

premium, as the resolution or resolutions may require. Construction subdistrict

bonds shall be sold at public sale for the price or prices as the board determines.

(3) Any resolution or resolutions authorizing any bonds pursuant to this section may

contain provisions, which shall be a part of the contract with the holders of the

bonds, concerning

(a) A pledge of or a security interest in the revenue derived from the construction

subdistrict;

(b) The amounts to be raised in each year by rates, rentals, and charges, and their

use and disposition;

(c) The setting aside of reserves or sinking funds and their regulation and

disposition;

(d) Limitations on the right of the district to restrict and regulate the use of the

subdistrict facilities;

(e) Limitations on the purposes to which the proceeds of sale of any issue of

bonds to be issued with respect to the same construction subdistrict may be

applied;

(f) Limitations on the issuance of additional bonds for the same construction

subdistrict; and

(g) The procedure, if any, by which the term of any contract with bondholders

may be amended or be abrogated, the amount of the bonds the holders of

which must give consent, and the manner in which the consent may be given.

(4) Construction subdistrict bonds shall not constitute an obligation or indebtedness of

the district or of any city or county, and it shall be stated plainly on the face of each

construction subdistrict bond that it has been issued under the provisions of KRS

76.005 to 76.295 and that it does not constitute an obligation or indebtedness of the

district or any city or county. All construction subdistrict bonds issued may be

issued without any other proceedings or happenings of any other condition or things

than those proceedings, conditions, and things which are specified and required by

KRS 76.005 to 76.295. Construction subdistrict bonds shall be signed in the name

of the district by the chairman or vice chairman of the board, attested by the

signature of the secretary-treasurer, with corporate seal of the district attached. The

bonds may also be executed pursuant to KRS 61.390.