342.829 Funding of authority -- Restrictions on use of funds.
377 words·~2 min read·
/ky/chapter-342/342-829A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The authority shall not receive any direct state general fund appropriation.
(2)Initial funding for the authority shall be determined by the Governor and the
secretary of the Finance and Administration Cabinet. Funding methods may include,
but not be limited to, a loan from an existing state agency or agencies to the
authority. The maximum amount borrowed from all state agencies shall not exceed
seven million dollars ($7,000,000), to be repaid over a period not to exceed ten
years from the original loan date. The Governor shall have the authority to provide
or secure additional funding necessary to maintain, for the first thirty-six
months of its operation, the surplus the Governor deems proper. The additional
funding may come from any funds which may be expended directly by the Governor
or from nonstate-agency sources and, regardless of source, shall be a loan to the
authority. The rate of interest to be applied to the loan shall be one percent (1%)
higher than the average for the long-term investment folder of the lending agency on
the anniversary date of the original loan. The interest rate shall be adjusted annually
on the anniversary date of the original loan. To minimize cash requirements and
interest obligations, the loan shall be executed as a line of credit against the lending
agency, so that only those funds actually required for initial start-up operations,
including the establishment of a surplus and reinsurance expenses, are drawn down
on an "as needed" basis.
(3)Any executive branch agency of the Commonwealth and any public corporation
created by the Commonwealth, any statute to the contrary notwithstanding, may
lend money to the authority subject to the terms and conditions of this section, and
any loan made pursuant to this section shall not be construed as a breach or
violation of fiduciary duties contained in KRS Chapter 386.
(4)Funds collected by the authority shall not:
(a)Be loaned to the Commonwealth or any instrumentality or agency thereof;
(b)Be subject to transfer to the Commonwealth or any agency or instrumentality
thereof, except for repayment of the loan authorized in subsections
(2)and
of this section; or
(c)Be expended for any other purposes than as authorized by KRS 342.801 to
342.843 and KRS 304.13-340.