175B.075 Moneys received under chapter are trust funds -- Permitted investment
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/ky/175b-075A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
of project revenue bond proceeds.
(1)All moneys received under this chapter, whether as proceeds from the sale of
project revenue bonds or revenues, shall be trust funds to be held and applied solely
as provided in this chapter. The trust indenture or any other document authorizing
the issuance of project revenue bonds or the collection of any revenues shall provide
that any officer, bank, or trust company with which the moneys are deposited shall
act as trustee of the moneys and shall hold and apply them for the purposes outlined
in this chapter, subject to the provisions of this chapter and the proceedings or trust
indenture.
(2)The proceeds of project revenue bonds shall only be invested in direct obligations of
the United States of America and direct federal agency obligations or other similar
obligations to the extent that the full faith and credit of the United States of America
is pledged for the timely payment thereof. Direct obligations shall include money
market mutual funds that invest solely in the obligations referenced in this
subsection.