Kentucky Statutes 66.051 – Purposes for issuance of bonds — Principal amount maximum
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(1) An issuer may issue bonds for the purpose of providing funds with which: (a) To fund floating indebtedness;
(b) To fund the cost of providing a public service if the governing body determines that an emergency exists and the public health or safety so requires;
(c) To fund unfunded liabilities;
(d) To establish a reserve for past or future liabilities or casualties; or
(e) To pay one (1) or more final judgments rendered against the issuer, including settlements of claims approved by a court.
(2) The principal amount of the bonds issued may not exceed the amount required for subsections (1)(a) to (e) of this section, plus financing costs, permitted by this chapter to be paid from the proceeds of bonds, plus, in the case of judgments, costs, and expenses assessed or taxed against the issue and defense costs of the issuer.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 5, effective July 15, 1996.
(b) To fund the cost of providing a public service if the governing body determines that an emergency exists and the public health or safety so requires;
Terms Used In Kentucky Statutes 66.051
- Bonds: means bonds, notes, commercial paper, and other instruments in writing, authorized by or issued pursuant to or in accordance with this chapter, to evidence an obligation to repay or guarantee the repayment of money borrowed, or to pay interest by, or to pay at any future time other money obligations. See Kentucky Statutes 66.011
- Financing costs: means all costs and expenses relating to the issuance and carrying costs of bonds including charges related to credit enhancement facilities which are not debt charges. See Kentucky Statutes 66.011
- Floating indebtedness: means the amount by which the total of all expenditures by an issuer in any fiscal year exceeds the total of all funds and receipts of the issuer for that fiscal year which are available to the issuer for the purpose of funding those expenditures, but only to the extent that the governing body of the issuer made good-faith estimates of expenditures and funds and receipts available to fund those expenditures and the short-fall in available funds and receipts was due to unforeseeable circumstances or events. See Kentucky Statutes 66.011
- Issuer: means a county, city, urban-county, charter county, or other taxing district, and for purposes of making any determinations required under this chapter, may include an authorized representative of the issuer. See Kentucky Statutes 66.011
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(c) To fund unfunded liabilities;
(d) To establish a reserve for past or future liabilities or casualties; or
(e) To pay one (1) or more final judgments rendered against the issuer, including settlements of claims approved by a court.
(2) The principal amount of the bonds issued may not exceed the amount required for subsections (1)(a) to (e) of this section, plus financing costs, permitted by this chapter to be paid from the proceeds of bonds, plus, in the case of judgments, costs, and expenses assessed or taxed against the issue and defense costs of the issuer.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 5, effective July 15, 1996.