KRS § 441.640 — KY Code / Title XL / Chapter 441 / Section 441.640
441.640 Revenue bonds issued by authority -- Limits on first issue -- Provisions for delivery of bond or note certificates
Status: in_force

441.640 Revenue bonds issued by authority -- Limits on first issue -- Provisions for

delivery of bond or note certificates.

(1) The authority may provide for the issuance of revenue bonds to pay any part of the

cost of any projects undertaken pursuant to an agreement and lease; provided that,

the authority shall not issue bonds before July 15, 1983, and until the total amount

of revenues collected and deposited in the authority's fund equals or exceeds two

million dollars ($2,000,000). The principal and interest on such bonds are payable

solely from the funds provided for such payment. Any issue may be in one (1) or

more series and any such 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 such rate or rates as established by the authority, shall mature at such

time or times not exceeding forty (40) years from their date or dates, all as may be

provided by the authority, and may be made redeemable before maturity, at the

option of the authority, at such price or prices and under such terms and conditions

as may be fixed by the authority prior to the issuance of the bonds. The authority

shall determine the form of the bonds and shall fix the denomination 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 or at the office of the

Finance and Administration Cabinet. The bonds shall be signed by the facsimile

signature of the chairman or secretary of the authority, and the seal of the authority

or a facsimile thereof shall be affixed thereto and attested by the manual signature

or a facsimile thereof of the secretary or chairman of the authority. All bonds issued

under the provisions of KRS 441.625 to 441.695 shall have all the qualities and

incidents of negotiable instruments under the uniform commercial code, KRS

Chapter 355. The authority may sell such bonds at public or private sale.

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

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

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

authority may provide in the proceedings authorizing the issuance of such bonds or

in the trust indenture securing the same. If the proceeds of the bonds of any issue,

by error of estimates or otherwise, shall be less than such cost, additional bonds

may in like manner be issued to provide the amount of such deficit, and, unless

otherwise provided in the proceedings authorizing the issuance of such bonds or in

the trust indenture securing the same, 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 exceed such cost,

the surplus shall be deposited to the credit of the sinking fund or funds for such

bonds or any account or accounts therein as the authority shall have provided in the

proceedings or trust indenture authorizing and securing such bonds.

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

restrictions, issue notes or temporary bonds exchangeable for definitive bonds when

such bonds shall have been executed and are available for delivery. The authority

may also provide for the replacement of any bonds which shall become mutilated or

shall be destroyed or lost.

(4) The terms of the trust indenture under which bonds or notes are issued may delegate

to the trustee the authority to establish procedures for the physical delivery of bond

or note certificates either at the time of original issuance or on subsequent transfers

but any such method shall be subject to the approval of the authority.