56.866 Tax and revenue anticipation notes -- Purpose -- Sale and issuance -- Report

327 words·~1 min read·/ky/56-866

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

to Capital Projects and Bond Oversight Committee.

(1)As the receipt of revenues and expenditure demands of a particular fund or account

of the Commonwealth render it necessary, the commission may issue tax and

revenue anticipation notes to discharge expenditure demands in anticipation of

estimated revenues that are required to be deposited in that fund or account during

the fiscal year in which the tax and revenue anticipation notes are issued. Tax and

revenue anticipation notes may be sold and issued in the manner and have terms

relating to the payment of interest, principal, and premiums or discounts as market

conditions warrant. Tax and revenue anticipation notes may be issued in an amount

not to exceed seventy-five percent (75%) of the estimated revenues anticipated to be

deposited during the fiscal year in the fund or account for which the tax and revenue

anticipation notes are being issued. Tax and revenue anticipation notes, together

with interest thereon, shall be repaid from revenues required to be deposited in the

fund for which the tax and revenue anticipation notes were issued. Revenues to be

deposited in that fund or account shall be pledged for the repayment of tax and

revenue anticipation notes so long as any tax and revenue anticipation notes remain

outstanding. Any lien on and security interest in taxes or revenues that may be

created as provided in this section shall be prior and superior to any other lien or

security interest created by law or otherwise.

(2)Tax and revenue anticipation notes may be refunded or reissued, in whole or in part.

(3)Notwithstanding any statutory provisions to the contrary, including without

limitation KRS 56.870, no approvals beyond those specifically required in this

section shall be required for the issuance, sale, and delivery of the tax and revenue

anticipation notes.

(4)The commission shall report the issuance of tax and revenue anticipation notes to

the Capital Projects and Bond Oversight Committee within thirty

(30)days of

issuance.