157.625 Issuance of bonds.

464 words·~2 min read·/ky/chapter-157/157-625

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

(1)Bonds of the commission shall be issued in the name of the commission, shall be

designated "school building revenue bonds" or, if appropriate, "school building

revenue refunding bonds," and shall additionally be identified by the name of the

board of education executing the lease. If the commission shall issue more than one

(1)series of bonds for the same lessee from time to time, each series, including the

first or subsequent to the first, shall additionally be identified distinctly by

alphabetical or chronological designation, by date of the bonds, or otherwise as the

commission may determine.

(2)For the purpose of determining any limit prescribed by any law for investment of

any public funds, or funds of banks, trust companies, insurance companies, building

and loan associations, credit unions, pension and retirement funds, and fiduciaries,

in obligations of a single obligor, bonds issued by the commission pursuant to KRS

157.615 to 157.640 shall not be deemed to be bonds or obligations of the same

obligor except to the aggregate of all series of bonds involving leases of a single

board of education.

(3)Bonds issued by the commission under the provisions of KRS 157.615 to 157.640

are hereby made securities in which all public officers and public bodies of the

Commonwealth and its political subdivisions, all insurance companies, trust

companies, banking associations, investment companies, executors, trustees, and

other fiduciaries, and all other persons whatsoever who are now or may hereafter be

authorized to invest in bonds or other obligations of a similar nature may properly

and legally invest funds, including capital in their control or belonging to them. The

bonds are hereby made securities which may properly and legally be deposited with

and received by any state or municipal officer or any agency or political subdivision

of the Commonwealth for any purpose for which the deposit of bonds or other

obligations of the Commonwealth is now or may hereafter be authorized by law.

(4)Nothing contained herein shall be construed to prohibit a board of education from

electing to issue bonds on the local level through a city, county, or other agency and

instrumentality of the board of education, and in such event the commission may

enter into a participation agreement with the board of education implementing the

commission's participation in the financing plan represented by the bonds. In the

event of the issuance of bonds on the local level, the board of education may pledge

and assign the commission's participation to the issuer to secure the bonds, and may

contract with the issuer to permit the collection by the commission or the issuer of

rentals due from the board of education under the lease in the event of a failure by

the board of education to make the payments in a timely manner.