216.160 Sinking fund, operation and depreciation accounts to be provided -- Lease

290 words·~1 min read·/ky/216-160

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

income.

(1)On or before the issuance of the bonds the city legislative body shall, by ordinance,

set aside and pledge the income of the municipal hospital into a separate and special

fund to be used and applied in payment of the cost, maintenance, operation and

depreciation of the hospital. The ordinance shall fix the amount of revenue

necessary to be set aside and applied to the payment of the principal and interest of

the bonds and the proportion of the balance of the income to be set aside as a proper

and adequate depreciation account. The remaining portion of the balance shall be

set aside for the reasonable and proper operation and maintenance of the hospital.

The rates to be charged for the use of the hospital and the services it renders shall be

fixed and revised from time to time so as to be sufficient to provide for the payment

of interest upon all bonds and to create a sinking fund to pay the principal thereof

when it becomes due, to provide for the operation and maintenance of the hospital,

and to provide an adequate depreciation account.

(2)The municipality issuing bonds under KRS 216.100 may lease the facility built

from the proceeds of said bonds to a hospital district created under KRS 216.310 et

seq. In that event the lease income from a lease agreement between the municipality

and the hospital district shall be sufficient to provide for the payment of interest

upon the bonds, to create a sinking fund to pay the principal thereof at or prior to

maturity, to accumulate proper reserves, and to pay the costs of operation and

insurance; or the lease may provide that the lessee shall pay the cost of insurance.