56.868 Funding notes -- Purposes -- Sale and issuance -- Approval -- Status of notes

353 words·~2 min read·/ky/56-868

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with respect to the Commonwealth and its political subdivisions.

(1)The commission may issue and sell funding notes for the purposes of funding

judgments against the Commonwealth or any state agency and financing or

refinancing obligations owed under KRS 161.550(2). Funding notes may be sold

and issued in a manner and have terms relating to the payment of interest, principal,

and premiums or discounts as market conditions warrant.

(2)Appropriations requests for payment of principal and interest on funding notes shall

be made by the state agency against which a judgment has been rendered or, in the

case of financing or refinancing obligations owed under KRS 161.550(2), to the

Kentucky Teachers' Retirement System. Funding notes, together with interest

thereon, shall be repaid from payments received by the commission from the

cabinet under a financing agreement.

(3)Funding notes may be issued for the following purposes:

(a)To pay for judgments, which shall include legal settlements, court-ordered

actions against the Commonwealth or any state agency, and any part of any

expense or cost incidental to legal settlements or court-ordered actions against

the Commonwealth or any state agency;

(b)To finance or refinance obligations owed under KRS 161.550(2); and

(c)To refund outstanding issues of funding notes.

(4)The issuance of funding notes shall be subject to KRS 56.870, to approval by the

State Property and Buildings Commission, and to review by the Capital Projects

and Bond Oversight Committee pursuant to KRS 45.810.

(5)The cabinet, in providing for the expenditure of funds for any of the purposes

mentioned in this section, may provide by a financing agreement with the state

agency so affected for the funding of the Commonwealth's or that state agency's

judgment, and the state agency so affected is authorized to enter into a financing

agreement with the cabinet for that purpose.

(6)Funding notes shall not constitute a debt of the Commonwealth or any political

subdivision thereof or a pledge of the faith and credit of the Commonwealth or any

political subdivision, but the notes shall be payable solely from payments received

under the financing agreement relating to the funding notes.