107.110 Proceeds from sale of bonds to be deposited -- Security -- Disbursement. - Kentucky Statutes

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107.110 Proceeds from sale of bonds to be deposited -- Security -- Disbursement. When the bonds are delivered and the proceeds are received by the city, the same shall be
deposited in a bank or trust company, or combined bank and trust company, together with
the proceeds of all payments received from benefited property owners on a lump-sum
basis, and to the extent such deposit may exceed insurance provided by Federal Deposit
Insurance Corporation, (if the depository be a member thereof, otherwise the full
amount), the same shall be secured by a valid pledge of bonds or notes of the United
States government, or fully guaranteed thereby, having at all times a market value equal
to the undisbursed balance of such deposit; or shall be secured in such other manner as
the governing body may prescribe or approve. Costs of the project which may then be
earned and payable, may be paid forthwith. There shall be set aside into the sinking fund,
hereinafter created, a sum from bond proceeds equal to all interest which will accrue on
said bonds until the date when the first improvement assessment levied in connection
therewith will become due and payable. The remainder may be disbursed from time to
time in payment of costs of the project, as herein defined, except that payments on
account of the construction contracts shall not exceed ninety percent (90%) of the amount
shown by a written certificate of the engineer to have been earned for materials furnished
and/or labor performed by any contractor, the retained ten percent (10%) to be disbursed
only upon final acceptance of the finished work of such contractor. If, after completion,
acceptance and payment of the work of all contractors, and the payment of all costs of the
improvement project, as herein defined, there shall remain an unexpended balance of
bond proceeds, such balance shall be transferred to the sinking fund created and
maintained in connection with the project, as provided in this chapter. If, after
completion, there remains any unexpended balance of lump-sum payments, it shall be
returned, pro rata, to the payors. History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 13, sec. 17. -- Created 1956 Ky. Acts ch. 239, sec. 11.