Kentucky Statutes 66.071 – Capitalized interest in bonds — Financing costs
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(1) Capitalized interest may be included in the principal amount of bonds to pay the interest that the issuer estimates will become due and payable on the bonds prior to the receipt of sufficient taxes, special assessments, or other revenues or receipts from which the interest is generally to be paid. Capitalized interest shall be deposited, as determined by the issuer, in the sinking fund or in a separate account in the special project or construction fund, and applied to interest on those bonds. The amount of capitalized interest may not exceed an amount estimated by the issuer to be interest that will accrue on the bonds prior to the date that is twelve (12) months after the date the public project is anticipated to be available for use.
(2) The amount of capitalized interest authorized by this section to be included in the principal amount of an issue of bonds shall be reduced by the amount of any capitalized interest included in any prior issue of bonds or obligations that is to be or was retired by the issuance of the bonds or prior bonds.
(3) Financing costs may be paid unless otherwise provided in the proceedings, from the proceeds of the bonds to which they relate and, as to future financing costs, from the same sources from which debt charges on the bonds are paid and as though debt charges.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 7, effective July 15, 1996.
(2) The amount of capitalized interest authorized by this section to be included in the principal amount of an issue of bonds shall be reduced by the amount of any capitalized interest included in any prior issue of bonds or obligations that is to be or was retired by the issuance of the bonds or prior bonds.
Terms Used In Kentucky Statutes 66.071
- 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
- Capitalized interest: means all or a portion of the interest payable on bonds from their date to a date stated or provided for in the proceedings, which interest is to be paid from the proceeds of the bonds. See Kentucky Statutes 66.011
- Debt charges: means the principal, including any mandatory sinking fund deposits, interest, and any redemption premium, payable on bonds as the payments come due and are payable and any charges related to credit enhancement facilities. 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
- 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
- Sinking fund: means a fund established for the management of moneys to be used for the retirement of outstanding bonds. See Kentucky Statutes 66.011
(3) Financing costs may be paid unless otherwise provided in the proceedings, from the proceeds of the bonds to which they relate and, as to future financing costs, from the same sources from which debt charges on the bonds are paid and as though debt charges.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 7, effective July 15, 1996.