96.544 Issuance of bonds -- Use of proceeds of bonds -- Disposition of surplus

265 words·~1 min read·/ky/96-544

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

revenue -- Bond procedure.

(1)Except where an election has been held and the proposition has been defeated, any

city may borrow money and issue negotiable bonds, but only after an ordinance has

been adopted specifying the proposed undertaking, the amount of bonds to be

issued, and the maximum rate of interest the bonds are to bear. The ordinance shall

further provide that the proposed system, with necessary appurtenances thereto, is to

be acquired pursuant to the provisions of KRS 96.541 to 96.546. Any bonds issued

under the provisions of KRS 96.541 to 96.546 shall be payable solely from the

revenue derived from the operation of the artificial gas system, and shall not

constitute an indebtedness of the city within the meaning of the Constitution.

(2)Money received from bonds issued as provided in subsection

(1)of this section may

be used to advance the expense of operation and maintenance for one

(1)month

after the establishment of the system. If a surplus is accumulated, from revenue, in

the operation and maintenance fund equal to the cost of maintaining and operating

the artificial gas system during the remainder of the calendar, operating or fiscal

year, as may be provided by ordinance on or before issuance of the bonds, the

legislative body of the city may at any time transfer the excess to the depreciation

account to be used for any improvements or additions to the system.

(3)Except as provided in subsection

(2)of this section, all of the provisions of KRS

96.380 to 96.500 shall be applicable to proceedings under KRS 96.541 to 96.546.