KRS § 162.540 — KY Code / Title XIII / Chapter 162 / Section 162.540
162.540 Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS 162.520 to 162.620
Status: in_force

162.540 Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS

162.520 to 162.620.

Upon receiving a request in writing from a board of education, the authority may, in its

discretion, assist such board of education in financing any project by acting in the

capacity and manner authorized to be performed by cities under KRS 162.120 to 162.290,

and by counties under KRS 162.300. When applied to the authority, KRS 162.120 to

162.300 shall be so read that the following terms and passages have the following

respective meanings or interpretations:

(1) "City" or "county" means "authority";

(2) "City clerk" or "county clerk" means "secretary or assistant secretary of the

authority";

(3) "Governing body of the city" or "fiscal court" means "authority";

(4) "Mayor" or "county judge/executive" means "chairman or vice chairman of the

authority";

(5) "Ordinance" in the case of a city, or "resolution" in the case of a county, means a

resolution of the authority;

(6) "Building and appurtenances" means "project" as defined in subsection (4) of KRS

162.520;

(7) The last sentence of KRS 162.190 shall read, "It shall be plainly stated on the face

of each bond that it was or is issued under the provisions of KRS 162.520 to

162.620 (omitting reference to KRS 162.150 to 162.280 as such), and that it does

not constitute an indebtedness of the authority or of the Commonwealth";

(8) KRS 162.200 is modified to permit use of money received from bonds for the

additional purpose of paying reasonable expenses incurred in the authorization,

advertising, preparation, sale, and delivery of bonds, and may include a fee

contracted to be paid to a fiscal agent for financial advice and services if the

contract or agreement therefor shall have been approved by the board of education

and by the authority;

(9) As used in KRS 162.140, "lease" shall have the meaning defined in subsection (5)

of KRS 162.520, and the same shall be recorded or filed for recording in the office

of the county clerk of the county in which the project is situated, as evidenced by a

written receipt or acknowledgment of filing issued by such clerk, or by a copy of the

lease attested or certified by such clerk as being of record in his office. It shall be

the duty of the secretary of the authority to obtain such evidence before delivery of

the bonds to a purchaser thereof; but failure to obtain the same shall not affect the

validity of the bonds in the hands of any purchaser or holder;

(10) KRS 162.240 shall not apply; and the following provisions shall govern in lieu

thereof:

"One (1) or more depositories and paying agents may be selected and

designated by the board of education, subject to the approval of the authority, which

approval shall not unreasonably be withheld; but each depository and paying agent

shall be a financial institution, within or without the Commonwealth, which is a

member of the Federal Deposit Insurance Corporation. All deposits of sinking funds

and of bond proceeds shall continuously be secured by a pledge to the authority of

direct obligations of the United States, exclusive of accrued interest, at all times at

least equal to the balance on deposit in the fund or account, such securities to be

deposited with the authority or held by a trustee or agent designated by the

authority; provided, however, in lieu of requiring such security the authority may in

its discretion invest, or cause to be invested and reinvested, any moneys in direct

obligations of the United States until such time as cash funds may be needed, and

the authority may prescribe for the custody and safekeeping of such securities.

When cash funds are needed, the authority shall direct the conversion into cash of

such securities, or a sufficient portion thereof, and may require that the same be

secured until disbursement, as herein provided. All income from such securities

shall accrue to the board of education, but may be retained by the authority and

credited upon any rental obligation of the board of education under the lease, or

applied to supplement bond proceeds if the same should for any reason turn out to

be insufficient to defray the costs and expenses of the project."