(1) Bonds issued by an issuer shall bear interest at a rate or rates as provided for in the legislation authorizing the bonds. Interest payable on the bonds may be determined at a variable rate or rates, which may change from time to time in accordance with a base, formula, or standard, including determination at whatever rate is required to sell or remarket the bonds on the open market, or other floating rate interest structure, identified or approved by the governing body.
(2) An issuer may issue bonds subject to call or redemption prior to maturity at a redemption price as determined by the governing body.

Terms Used In Kentucky Statutes 66.121

  • 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
  • Governing body: means the legislative authority of the issuer. 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
  • Legislation: means an ordinance or resolution passed by a governing body. See Kentucky Statutes 66.011
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.

Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 12, effective July 15, 1996.

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