KRS § 66.370 — KY Code / Title IX / Chapter 66 / Section 66.370
66.370 Surrender of sinking fund assets to county sinking fund -- Administration of fund
Status: in_force

66.370 Surrender of sinking fund assets to county sinking fund -- Administration

of fund.

(1) A county may, by order of its fiscal court, surrender to the state local debt officer,

Department for Local Government, all money in hand, notes, bonds, accounts, or

other credits representing assets available, and any other sums which may hereafter

become available from any and all sources, for paying the principal and interest of

any bonded debt of the county; however, if a county surrenders the sinking fund for

any bond issue payable either from the tax levy authorized by Section 157 or by

Section 157a of the Constitution of Kentucky or from any special tax levy

authorized by law, it shall also surrender the sinking funds for all other bonds

payable from the same tax levy as herein defined. The surrender shall be irrevocable

on the part of the county. Any county which has a bond issue approved under KRS

66.310 may comply with the provisions of this subsection with respect to the

sinking funds for the bonds thus approved and for any other bonds payable from the

same tax levy as herein defined.

(2) All cash received under this section by the state local debt officer, Department for

Local Government, shall be deposited with the commissioner, Department for Local

Government, to the credit of a fund designated the "county sinking fund." All assets

other than cash shall be deposited with the commissioner, Department for Local

Government, and shall be liquidated, upon authorization of the commissioner,

within a reasonable time.

(3) The county treasurer of any county complying with the provisions of this section

shall remit monthly to the state local debt officer, Department for Local

Government, all moneys received from any tax levy made for the exclusive purpose

of paying principal and interest on any bonds. Any moneys appropriated in the

county budget from any other source or any moneys required by law to be used for

the same purpose shall be remitted as required for paying any principal or interest

maturities, or both, or meeting sinking fund requirements. The state local debt

officer, Department for Local Government, may institute actions in the Franklin

Circuit Court to enforce the provisions of this subsection or to recover any funds

that may have been misapplied.

(4) Accounts showing the county sinking fund receipts and disbursements shall be kept

by the state local debt officer, Department for Local Government, for each bond

issue of each county for which deposits are made in the fund. As of the close of the

county fiscal year the state local debt officer, Department for Local Government,

shall, within thirty (30) days thereafter, render to the county judge/executive of each

county having deposits in the fund a statement thereof for each bond issue of that

county. On or about the first day of May of each year, the state local debt officer,

Department for Local Government, shall deliver to the county judge/executive an

estimate of the principal and interest requirements of outstanding bonds issued by

that county or of the proportionate annual amount which should be deposited in a

sinking fund.

(5) Disbursements from the county sinking fund shall, when authorized by the state

local debt officer, Department for Local Government, be made in the same manner

as other claims on the Commonwealth are paid. Disbursements may be made only

for:

(a) The payment of principal or interest, or both, of the bonds for which the

deposit was made; and

(b) The investment of the funds as authorized by law.

(6) All coupons and bonds for the payment of which deposits are made in the county

sinking fund shall be paid either directly by the state local debt officer, Department

for Local Government, or by the bank designated as paying agent. That bank may be

paid a reasonable fee for its services by the Department for Local Government out

of its appropriation. All paid bonds and coupons shall be surrendered to the state

local debt officer and canceled and shall be delivered to the judge/executive of each

county along with the annual statement provided for in this section.