224A.140 Refunding bonds.
334 words·~2 min read·
/ky/chapter-224a/224a-140A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The authority is hereby authorized to provide for the issuance of refunding revenue
bonds or notes for the purpose of refunding any revenue bonds or notes then
outstanding which shall have been issued under the provisions of this chapter,
including the payment of any redemption premium thereon and any interest accrued
or to accrue to the date of redemption of such revenue bonds or notes. The issuance
and sale of such refunding revenue bonds or notes, the maturities and other details
thereof, the rights of the holders thereof, and the rights, duties, and obligations of
the authority in respect of the same, shall be governed by the provisions of this
chapter which relate to the issuance of revenue bonds or notes, insofar as such
provisions may be applicable.
(2)Refunding revenue bonds or notes may be sold or exchanged directly for
outstanding revenue bonds or notes of the authority, and if sold, the proceeds
thereof shall be applied, in addition to any other authorized purposes, to the
purchase, redemption, or payment of such outstanding revenue bonds or notes.
Pending the application of the proceeds of any such refunding revenue bonds, with
any other available funds, to the payment of the principal, accrued interest, and any
redemption premium on the revenue bonds or notes being refunded (and if so
provided or permitted in the authority resolution authorizing the issuance of such
refunding revenue bonds or notes, or in the trust indenture securing the same, to the
payment of any interest on such refunding revenue bonds or notes and any expenses
in connection with such refunding), such proceeds may be invested in direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America which shall mature or
which shall be subject to redemption by the holders thereof at the option of such
holders not later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.