198A.165 Authorization for establishing reserve and replacement funds. - Kentucky Statutes

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198A.165 Authorization for establishing reserve and replacement funds. The corporation shall be authorized and empowered in connection with the issuance of its
bonds and notes for housing purposes pursuant to this chapter to establish in respect of
such bonds and notes such reserve funds or replacement funds as may be required in the
sound discretion of the board of directors of the corporation to enable the corporation to
effectuate its proper public purposes. In the event any such reserve fund or replacement
fund created by the corporation in connection with any such bond issue or note issue
should, in violation of any contract made by the corporation with any bondholder or note
holder be monetarily deficient in any respect as of any date of accounting so stipulated by
the corporation, the corporation shall immediately make formal request in writing to the
secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky
that sums adequate to restore such reserve fund or replacement fund to its contractually
required level and to pay any overdue principal and interest on any outstanding bonds and
notes of the corporation be included in the next succeeding executive budget, and that
such budget request with recommendation for approval by the General Assembly to the
corporation for the use and benefit of such reserve fund or replacement fund. In the event
the next scheduled even-numbered-year regular session of the General Assembly of
Kentucky shall occur more than six (6) months after any such request by the corporation,
the corporation shall request that sums adequate to restore such reserve fund or
replacement fund to such contractually required level and to pay any overdue principal
and interest on any outstanding bonds and notes of the corporation be made available
from the Governor's contingency fund, and if such funds are so made available the budget
request hereinabove described in this section shall be correspondingly reduced. Effective: June 21, 2001
History: Amended 2001 Ky. Acts ch. 58, sec. 27, effective June 21, 2001. -- Created 1974 Ky. Acts ch. 383, sec. 8.