56.063 Deposit and use of savings generated as result of refunding transaction.

397 words·~2 min read·/ky/chapter-56/56-063

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

(1)As used in this section:

(a)"Asset/liability commission" means the Kentucky Asset/Liability Commission

established by KRS 56.861;

(b)"Commission" means the State Property and Buildings Commission

established by KRS 56.450;

(c)"General fund" has the same meaning as in KRS 48.010(15)(a);

(d)"Present value savings" means the difference expressed in terms of current

dollars between debt service on refunded bonds and debt service on refunding

bonds;

(e)"Refunded bonds" means outstanding bonds, notes, or other obligations that

were issued at any time, and that are refinanced through a refunding

transaction;

(f)"Refunding bonds" means new bonds, notes, or other obligations issued to

refund outstanding bonds, notes, or other obligations, including redemption

premiums and any interest accrued or to accrue to the date of redemption as

part of a refunding transaction;

(g)"Refunding transaction" means a transaction:

1. Whereby outstanding bonds, notes, or other obligations are refunded by

the issuance of new refunding bonds, notes, or other obligations; and

2. That is directly supported in whole or in part by appropriations from the

general fund or road fund;

(h)"Revenue shortfall" has the same meaning as in KRS 48.010(18);

(i)"Road fund" has the same meaning as in KRS 48.010(15)(g); and

(j)"State agency":

1. Includes:

a. Any state administrative body, agency, department, or division as

defined in KRS 42.005; and

b. Any board, commission, institution, or division exercising any

function of the state;

with the authority to issue bonds, notes, or other obligations, and to enter

into refunding transactions with respect to those bonds, notes, or other

obligations; but

2. Does not include universities that are part of the postsecondary

education system, as defined in KRS 164.001.

(2)Notwithstanding any other provision of the Kentucky Revised Statutes, the savings

generated from reduced debt service payments during a fiscal biennium as a result

of any refunding transaction undertaken by the commission, the asset/liability

commission, or any state agency that:

(a)Results in a reduction in required debt service during the fiscal biennium; and

(b)Does not result in positive net present value savings; shall be deposited in the budget reserve trust fund account established by KRS 48.705, and shall not be used as part of any budget-balancing measures adopted or taken by the executive branch either in response to a revenue shortfall, or to address expenditure reductions required by an enacted biennial budget for the executive branch.