56.520 Revenue bonds -- Investment of proceeds of authorized bonds.

359 words·~2 min read·/ky/chapter-56/56-520

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

(1)The commission may issue and sell revenue or other authorized bonds, in carrying

out the provisions of this chapter, in denominations and amounts, as is deemed to be

for the best interest of the Commonwealth, for any of the following purposes:

(a)To acquire real estate for state governmental use;

(b)To pay all or any part of the expense or cost of or incidental to a building

project for state governmental use;

(c)To defray the cost of plans, specifications, blueprints, architectural fees, and

other expenses authorized to be incurred for state governmental use.

(2)The payment of bonds issued, together with the interest thereon, may be secured by

a pledge and a first lien on all of the receipts and revenue derived, or to be derived,

from the rental or operation of the property involved. Neither the payment of any

bond, nor the interest thereon issued under the authority of this chapter, shall

constitute an indebtedness of the Commonwealth of Kentucky, nor shall any bond

or interest thereon be payable out of any fund except funds derived from rentals or

other revenues derived from the operation of the properties or from revenues as are

available for the purpose by law.

(3)All competitive bids for the sale of revenue bonds shall be opened and read publicly

by the secretary of the Finance and Administration Cabinet or the secretary's

representative at a designated place, day, and hour, all of which shall be indicated in

the notice made relative thereto.

(4)If the commission issues and sells bonds for a building project as authorized by this

chapter, insurance, including fire and windstorm, casualty, catastrophe, use and

occupancy, and such other insurance as the commission may deem advisable, shall

be carried in connection with the building project, and it may so obligate and bind

itself in a trust indenture securing the payment of the bonds. Any insurance shall be

paid for out of funds available for the project.

(5)The commission may invest proceeds from the sale of its revenue or other

authorized bonds in financial instruments and investments as provided in KRS

42.500 for the State Investment Commission.