76.254 Revenue bonds of construction subdistrict -- Procedure -- Contents. - Kentucky Statutes

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76.254 Revenue bonds of construction subdistrict -- Procedure -- Contents. (1) The district is authorized and empowered to issue negotiable, interest-bearing, construction subdistrict bonds which shall not be an obligation of the district;
construction subdistrict revenue bonds shall be secured solely by the revenue
pledged by KRS 76.262 and by moneys, if any, in the construction subdistrict
reserve fund authorized by KRS 76.262. Construction subdistrict bonds can be
issued to obtain funds for the building, installation, or acquisition of construction
subdistrict facilities or for refunding construction subdistrict bonds of the same
construction subdistrict. Notwithstanding the foregoing two sentences, construction
subdistrict bonds can be served by assessments. (2) Construction subdistrict bonds shall be authorized by resolution of the board, shall bear a date or dates, shall mature at a time or times, not exceeding forty (40) years
from their respective dates, bear interest at a rate or rates or method of determining
rates, payable at least annually, be in a form, wholly registered, registered as to
principal with bearer coupon, or bearer with coupon, carry registration privileges, be
executed in a manner, be payable in a manner, be payable in a medium of payment
at a place or places, and be subject to the terms of redemption, with or without
premium, as the resolution or resolutions may require. Construction subdistrict
bonds shall be sold at public sale for the price or prices as the board determines. (3) Any resolution or resolutions authorizing any bonds pursuant to this section may contain provisions, which shall be a part of the contract with the holders of the
bonds, concerning
(a) A pledge of or a security interest in the revenue derived from the construction subdistrict; (b) The amounts to be raised in each year by rates, rentals, and charges, and their use and disposition; (c) The setting aside of reserves or sinking funds and their regulation and disposition; (d) Limitations on the right of the district to restrict and regulate the use of the subdistrict facilities; (e) Limitations on the purposes to which the proceeds of sale of any issue of bonds to be issued with respect to the same construction subdistrict may be
applied; (f) Limitations on the issuance of additional bonds for the same construction subdistrict; and (g) The procedure, if any, by which the term of any contract with bondholders may be amended or be abrogated, the amount of the bonds the holders of
which must give consent, and the manner in which the consent may be given. (4) Construction subdistrict bonds shall not constitute an obligation or indebtedness of the district or of any city or county, and it shall be stated plainly on the face of each
construction subdistrict bond that it has been issued under the provisions of KRS
76.005 to 76.295 and that it does not constitute an obligation or indebtedness of the
district or any city or county. All construction subdistrict bonds issued may be issued without any other proceedings or happenings of any other condition or things
than those proceedings, conditions, and things which are specified and required by
KRS 76.005 to 76.295. Construction subdistrict bonds shall be signed in the name
of the district by the chairman or vice chairman of the board, attested by the
signature of the secretary-treasurer, with corporate seal of the district attached. The
bonds may also be executed pursuant to KRS 61.390. Effective: July 15, 1996
History: Amended 1996 Ky. Acts ch. 274, sec. 13, effective July 15, 1996. -- Amended 1980 Ky. Acts ch. 188, sec. 58, effective July 15, 1980. -- Amended 1970 Ky. Acts
ch. 92, sec. 18. --Created 1964 Ky. Acts ch. 33, sec. 22.