181.770 Allocation of fund for payment of principal and interest.

189 words·~1 min read·/ky/chapter-181/181-770

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

(1)The fund for payment of principal and interest on the bonds shall be set aside each

month in a sinking fund for the payment of:

(a)The interest upon such bonds as it falls due;

(b)The necessary fiscal agency charges for paying bonds and interest; and

(c)The payment of the principal of the bonds, such sinking fund to be a fund for

all such bonds without distinction or priority of one over another.

(2)Prior to the issuance of the bonds the commission may provide by resolution or by

trust indenture for using the sinking fund or any part thereof in the purchase of any

of the outstanding bonds payable therefrom at the market price, but not exceeding

the price at which the bonds shall at the next interest date be payable or redeemable,

and all bonds redeemed or purchased shall be canceled and shall not again be

issued.

(3)The money in the sinking fund, if not used within a reasonable time for the purchase

of bonds for cancellation, shall be applied to the redemption of bonds by lot at the

redemption price then applicable.