268.370 Board may issue bonds -- Terms -- Use of proceeds -- Duties of treasurer --
813 words·~4 min read·
/ky/268-370A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Bond -- Duties of county clerk -- Warrants for payment.
(1)The board of drainage commissioners may, if in their judgment it seems best, issue
bonds on behalf of any district under their control, not to exceed ninety percent
(90%) of the total amount of the minimum district assessments levied upon the
property of the district approved by the county judge/executive. The bonds shall be
in denominations of not less than one hundred dollars ($100), bearing interest
payable at least annually from the date of issue, to mature at annual or more
frequent intervals within thirty
(30)years, commencing after a period of years not
later than five
(5)years, to be determined by the board. Both principal and interest
shall be payable at some convenient bank or trust company's office, to be named in
the bonds. The bonds shall be signed by the president of the board, attested with the
seal of the board, and the signature of the secretary and countersigned by the county
clerk of the county in which the district is organized. All bonds shall be executed
and delivered to the treasurer of the district, who shall sell them in quantities and at
dates as the board considers necessary. The funds derived from the sale of bonds
shall be used only to pay the cost of improvements and the expenses, fees, and
salaries authorized by law. The secretary of the board shall certify to the county
clerk in which the district was organized a copy of the resolution authorizing and
directing the issuance of the bonds, which shall contain a list of the bonds, their
dates of maturity, and amounts. The clerk shall record this resolution in the lis
pendens record in his office. The bonds shall show on their face the purpose for
which they are issued.
(2)The bonds shall be payable out of money derived from the assessments upon
property, and a sufficient amount of the drainage assessment shall be appropriated
by the board to pay the principal and interest. This sum shall be preserved in a
separate fund for that purpose. All bonds and coupons not paid at maturity shall
bear interest from maturity until paid, or until sufficient funds for their payment
have been deposited at the place of payment, and this interest shall be appropriated
by the board out of the penalties and interest collected on assessments or any other
available funds of the district. The board, in making the annual levy of assessments,
shall take into account the maturing bonds and interest on all bonds and make
ample provisions in advance for their payment. If the proceeds of the original levy
of assessments are not sufficient to pay the principal and interest of all bonds
issued, the board shall make any additional levy upon benefits assessed necessary
for this purpose. However, no levy of assessments shall be made in excess of the
benefits to the property as shown by the report of the appraisers, as corrected, that
will in any manner impair the security of bonds or the fund available for the
payment of the principal or interest.
(3)When he receives the bonds the treasurer shall execute and deliver to the president
of the board a bond with good and sufficient sureties, to be approved by the board,
conditioned that he shall account for and pay over as required by law and as ordered
to do by the board all money received by him on the sale of any bonds, and that he
will only sell and deliver the bonds to the purchaser of the bonds according to the
terms of this section, and that he will return, duly canceled, any bonds not sold to
the board when ordered by it to do so. This bond shall remain in the custody of the
president of the board, who shall produce it for inspection or as evidence whenever
legally required to do so. The bond of the treasurer may, if the board directs, be
signed by a surety or bonding company, which may be approved by the board. The
successor in office of any treasurer shall comply with all provisions applicable to
his predecessor before receiving bonds or their proceeds. The treasurer shall
promptly report all sales of bonds to the board.
(4)The board shall, at reasonable times, prepare and issue warrants for the payment of
the maturing bonds sold and the interest payments coming due on all bonds sold.
Each warrant shall specify what bonds and accruing interest it is to pay, and the
treasurer shall place sufficient funds at the place of payment to pay the maturing
bonds and coupons when due, as well as a reasonable compensation to the bank or
trust company for paying them, not to exceed two dollars and fifty cents ($2.50) for
each one thousand dollars ($1,000) par value of bonds or coupons paid.