KRS § 177.450 — KY Code / Title XV / Chapter 177 / Section 177.450
177.450 Turnpike revenue bonds
Status: in_force

177.450 Turnpike revenue bonds.

(1) The department is authorized to provide, at one time or from time to time, for the

issuance of turnpike revenue bonds of the Commonwealth for the purpose of paying

all or any part of the cost of any one or more turnpike projects. The principal of and

the interest on the bonds shall be payable solely from the funds provided in KRS

177.390 to 177.570 for payment. The bonds of any issue may be in one (1) or more

series and any one (1) or more of the series may enjoy equal or subordinate status

with respect to the pledge of funds from which they are payable, shall be dated,

shall bear interest at a rate or rates or method of determining rates, payable at least

annually, shall mature at a time or times not exceeding forty (40) years from their

date or dates, all as may be determined by the department, and may be made

redeemable before maturity, at the option of the department, at a price or prices and

under terms and conditions as may be fixed by the department prior to the issuance

of the bonds. The department shall determine the form of the bonds, including any

interest coupons to be attached to the bonds, and shall fix the denomination or

denominations of the bonds and the place or places for payment of principal and

interest, which may be at any bank or trust company within or without the

Commonwealth. The bonds shall be signed by the commissioner of highways, and

the great seal of the Commonwealth or a facsimile signature of the commissioner

shall be affixed to the bonds and attested by the Secretary of State by his facsimile

signature, and any coupons attached to the bonds shall bear the facsimile signature

of the commissioner of highways. In case any officer whose signature or a facsimile

of whose signature shall appear on any bonds or coupons shall cease to be an officer

before the delivery of the bonds, the signature or facsimile shall nevertheless be

valid and sufficient for all purposes the same as if he had remained in office until

the delivery. All bonds issued under the provisions of KRS 177.390 to 177.570

shall have and are declared to have all the qualities and incidents of negotiable

instruments under the negotiable instruments law of the Commonwealth. The bonds

may be issued in coupon or in registered form, or both, as the department may

determine, and provision may be made for the registration of any coupon bonds as

to principal alone and also as to both principal and interest, and for the reconversion

into coupon bonds of any bonds registered as to both principal and interest. The

department may sell the bonds in a manner, either at public or private sale, and for a

price as it may determine will best effect the purposes of KRS 177.390 to 177.570.

(2) The proceeds of the bonds of each issue shall be used solely for the payment of the

cost of the turnpike project or projects for which the bonds shall have been issued,

and shall be disbursed in a manner and under the restrictions, if any, as the

department may provide in the proceedings authorizing the issuance of the bonds or

in the trust agreement mentioned in KRS 177.460 securing the bonds. If the

proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less

than the cost, additional bonds may be issued to provide the amount of the deficit,

and, unless otherwise provided in the proceedings authorizing the issuance of the

bonds or in the trust agreement securing the bonds, shall be deemed to be of the

same issue and shall be entitled to payment from the same fund without preference

or priority of the bonds first issued. If the proceeds of the bonds of any issue shall

exceed the cost, the surplus shall be deposited to the credit of the sinking fund or

funds for the bonds or any account or accounts as the department shall have

provided in the proceedings or trust agreement authorizing and securing the bonds.

(3) Prior to the preparation of definitive bonds, the department may, under like

restrictions, issue interim receipts or temporary bonds, with or without coupons,

exchangeable for definitive bonds when the bonds shall have been executed and are

available for delivery. The department may also provide for the replacement of any

bonds which shall become mutilated or shall be destroyed or lost. Bonds may be

issued under the provisions of KRS 177.390 to 177.570 without obtaining the

consent of any department, division, commission, board, department, or agency of

the Commonwealth, and without any other proceedings or the happening of any

other conditions or things than those proceedings, conditions, or things which are

specifically required by KRS 177.390 to 177.570.