220.587 Financing methods temporarily inadequate -- Procedure -- Contracts.

359 words·~2 min read·/ky/chapter-220/220-587

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

(1)If the district finds as a fact that the methods of financing sewer facilities within a

construction subdistrict provided for in KRS 220.553 to 220.613 will be inadequate,

uneconomic, or unduly burdensome to the residents to be initially served, the

district may contract with one

(1)or more persons to construct or cause to be

constructed a sewer system within the construction subdistrict or to advance or loan

money to the district for the construction of a sewer system within the construction

subdistrict. The sewer system constructed will be the property of the construction

subdistrict and will be a construction subdistrict facility. When the district finds that

one

(1)or more financing methods for construction subdistricts established by KRS

220.553 to 220.613, excluding this section, have become feasible, the district may

adopt such method or methods to raise the money to pay for the construction of

sewer facilities within the construction subdistrict or to pay the loan.

(2)The contract may be made prior to the making of an order establishing the

construction subdistrict. The contract may require that one

(1)or more persons

agree to buy construction subdistrict bonds to be issued pursuant to KRS 220.577 in

an amount specified, which shall be sufficient to finance the construction of the

sewer system. The maximum price and yield of the bonds shall be stated in the

contract. Such contract shall not prevent the district from selling the bonds to a

lower bidder.

(3)All contracts made pursuant to this section shall be in writing and shall contain a

covenant that this section shall prevail over any contrary feature of the contract.

(4)The General Assembly declares that the public policy of the Commonwealth will

not be offended merely because a contract or loan made pursuant to this section is

privately negotiated or because it is made without competitive bidding.

(5)Bonds sold to one

(1)or more contracting parties pursuant to subsection

(2)shall be

endorsed to disclose the nature of the sale. Such bonds, no matter who the holder or

owner, shall never be eligible to have any payment made on their account pursuant

to KRS 220.593(6).