157.625 Issuance of bonds. - Kentucky Statutes

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157.625 Issuance of bonds. (1) Bonds of the commission shall be issued in the name of the commission, shall be designated "school building revenue bonds" or, if appropriate, "school building
revenue refunding bonds," and shall additionally be identified by the name of the
board of education executing the lease. If the commission shall issue more than one
(1) series of bonds for the same lessee from time to time, each series, including the
first or subsequent to the first, shall additionally be identified distinctly by
alphabetical or chronological designation, by date of the bonds, or otherwise as the
commission may determine. (2) For the purpose of determining any limit prescribed by any law for investment of any public funds, or funds of banks, trust companies, insurance companies, building
and loan associations, credit unions, pension and retirement funds, and fiduciaries,
in obligations of a single obligor, bonds issued by the commission pursuant to KRS
157.615 to 157.640 shall not be deemed to be bonds or obligations of the same
obligor except to the aggregate of all series of bonds involving leases of a single
board of education. (3) Bonds issued by the commission under the provisions of KRS 157.615 to 157.640 are hereby made securities in which all public officers and public bodies of the
Commonwealth and its political subdivisions, all insurance companies, trust
companies, banking associations, investment companies, executors, trustees, and
other fiduciaries, and all other persons whatsoever who are now or may hereafter be
authorized to invest in bonds or other obligations of a similar nature may properly
and legally invest funds, including capital in their control or belonging to them. The
bonds are hereby made securities which may properly and legally be deposited with
and received by any state or municipal officer or any agency or political subdivision
of the Commonwealth for any purpose for which the deposit of bonds or other
obligations of the Commonwealth is now or may hereafter be authorized by law. (4) Nothing contained herein shall be construed to prohibit a board of education from electing to issue bonds on the local level through a city, county, or other agency and
instrumentality of the board of education, and in such event the commission may
enter into a participation agreement with the board of education implementing the
commission's participation in the financing plan represented by the bonds. In the
event of the issuance of bonds on the local level, the board of education may pledge
and assign the commission's participation to the issuer to secure the bonds, and may
contract with the issuer to permit the collection by the commission or the issuer of
rentals due from the board of education under the lease in the event of a failure by
the board of education to make the payments in a timely manner. Effective: July 13, 1990
History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 384, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 213, sec. 2, effective July 15, 1988. --
Created 1985 (1st Extra. Sess,) Ky. Acts ch. 10, sec. 31, effective October 18, 1985.