KRS § 65.114 — KY Code / Title IX / Chapter 65 / Section 65.114
65.114 Investment in securitized bonds -- Limitations -- Determination of connection by commission -- Limitation on adverse governmental actions affecting rights in securitized property
Status: in_force

65.114 Investment in securitized bonds -- Limitations -- Determination of

connection by commission -- Limitation on adverse governmental actions

affecting rights in securitized property.

(1) All of the following entities may legally invest any sinking funds, moneys, or other

funds, in securitized bonds:

(a) Subject to applicable statutory restrictions on state or local investment

authority, the Commonwealth, units of local government, political

subdivisions, public bodies, and public officers, except for:

1. Members of the commission;

2. The commission's technical advisory and other staff; and

3. Employees of the Attorney General's Office of Rate Intervention;

(b) Banks and bankers, savings and loan associations, credit unions, trust

companies, savings banks and institutions, investment companies, insurance

associations, and other persons carrying on a banking or insurance business;

(c) Personal representatives, guardians, trustees, and other fiduciaries; and

(d) All other persons authorized to invest in bonds or other obligations of a

similar nature.

(2) Any determination of the commission made in connection with any financing order

and any financing order of the commission issued pursuant to this subsection shall

be a binding, irrevocable, and final order of the commission, and binding on the

commission and the Commonwealth. The Commonwealth and its agencies,

including the commission, pledge and agree with bondholders, the owners of the

securitized property, and other financing parties that the Commonwealth and its

agencies shall not undertake any of the prohibited actions listed in this subsection.

This subsection shall not preclude limitation or alteration, if full compensation is

made by law for the full protection of the securitized surcharges collected pursuant

to a financing order and of the bondholders, any assignee, or financing party

entering into a contract with the electric utility. The Commonwealth and its

agencies, including the commission, shall not:

(a) Alter the provisions of KRS 278.670 to 278.696 and 65.114 which authorize

the commission to create an irrevocable contract right or right to sue by the

issuance of a financing order creating securitized property, making the

securitized surcharges imposed by a financing order irrevocable, binding, or

affecting the nonbypassable charges for all existing and future retail

customers of the electric utility;

(b) Take or permit any action that impairs or would impair the value of

securitized property or the security for the securitized bonds or revises the

securitized costs for which recovery is authorized;

(c) In any way impair the rights and remedies of the bondholders, assignees, and

other financing parties; and

(d) Except for changes made pursuant to the formula-based true-up mechanism

authorized under KRS 278.678, reduce, alter, or impair securitized surcharges

that are to be imposed, billed, charge, collected, and remitted for the benefit of

the bondholders, any assignee, and any other financing parties until any and

all principal, interest, premium, financing costs, and other fees, expenses, or

charges incurred, and any contracts to be performed, in connection with the

related securitized bonds have been paid and performed in full.

(3) Any person or entity that issues securitized bonds may include the language

specified in this subsection in the securitized bonds and related documentation.