224A.085 Interim financing.

371 words·~2 min read·/ky/chapter-224a/224a-085

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

The authority may enter into interim financing agreements with governmental agencies, and governmental agencies may enter into interim financing agreements with the authority in connection with eligible projects. Each such interim financing agreement may be subject to the approval by the State Water Pollution Agency, or the State Public Service Commission, if applicable, may contain and include such provisions as may be agreed upon by the parties thereto, and shall include and prescribe the following provisions:

(1)An estimate of the reasonable cost of the eligible project, as determined by the

authority;

(2)The amount of state or federal grants or loans to be made to the governmental

agency;

(3)The time or times at which such state or federal grants or loans shall become

payable to the governmental agency;

(4)The specific purpose or purposes for which the proceeds of state or federal grants or

loans made to the governmental agency shall be expended;

(5)The conditions under which state or federal grants or loans may be expended on

account of the eligible project by the governmental agency;

(6)An agreement by the governmental agency:

(a)To proceed expeditiously with and promptly complete the eligible project or

cause same to be completed in accordance with the plans and specifications

approved by federal and state agencies;

(b)To commence or cause to be commenced operation of the eligible project on

completion of construction and not to discontinue operations or dispose of

such eligible project without the approval of the authority, and the State Water

Pollution Agency or State Public Service Commission, if applicable;

(c)To operate and maintain or cause to be operated and maintained the eligible

project in accordance with applicable provisions of federal and state law and

the terms and conditions of the loan documents implementing federal or state

grants or loans to the governmental agency;

(d)To provide for the payment of the governmental agency's share of the cost of

the eligible project through the issuance of the governmental agency long term

debt obligations in the appropriate manner and at the appropriate time in order

that sufficient funds will be available to repay and retire bond anticipation

notes issued by the authority on behalf of said governmental agency.